Investment giant BlackRock has cinched approval from Chinese regulators to establish a majority-owned wealth management joint venture (JV).
The China Banking and Insurance Regulatory Commission (CBIRC) announced on Wednesday that it had given its approval to the launch of a JV which is 50.1% owned by BlackRock.
Other shareholders will include big state-owned lender China Construction Bank (CCB) and Singaporean sovereign wealth fund Temasek.
The JV is expected to focus on investment in domestic assets, with CCB responsible for distribution.
BlackRock is the world’s largest asset manager, and joins the ranks of other global financial institutions seeking to capitalise upon China’s recent efforts to open up the domestic finance sector.
In August 2020 BlackRock grabbed preliminary approval for the establishment of its own mutual funds unit, after Chinese regulators gave the green light to full foreign-ownership.
The wealth management market in China remains heavily dominated by banks, with BlackRock one of the first foreign players to make a foray into the sector.
“The Chinese market represents a significant opportunity to help meet the long-term goals of investors in China and internationally” said BlackRock chief executive Larry Fink in a statement.
“We are committed to investing in China to offer domestic assets for domestic investors and look forward to creating a better financial future for more people.”
Last year French asset manager Amundi established a JV with state-owned lender Bank of China, which became the first financial institution majority-owned by foreign investors to sell wealth management products in the Chinese market.