On Wednesday, BlackRock, the world’s largest asset manager, said its Chinese subsidiary has set up its first mutual fund in the country after raising 6.68 billion yuan ($1.03 billion) from 111,000 Chinese investors.
New York-based BlackRock is the first foreign-owned company allowed by Beijing to operate a wholly-owned business in China’s burgeoning mutual fund industry. The firm launched the mutual fund and a series of other investment products for Chinese consumers on Aug. 30. Chinese investors piled into the mutual fund with such gusto that BlackRock was able to close the subscription period in a few days rather than two weeks as originally planned.
BlackRock’s success in mobilizing so much capital in so little time offered a bankable retort to billionaire George Soros who, in a Wall Street Journal op-ed published Tuesday, lambasted the firm’s foray into the world’s second-largest economy as a “tragic mistake” that would “damage the national security interest of the U.S. and other democracies.”
In the commentary, entitled “BlackRock’s China Blunder,” Soros also deplored a mid-August recommendation from BlackRock’s Investment Institute that investors triple their allocations in Chinese assets.
“Pouring billions of dollars into China now,” Soros predicted, is “likely to lose money for BlackRock’s clients.”
Maybe so. But a horde of rival money managers is eager to emulate BlackRock’s “blunder.” Fidelity Investments won a license from China’s Securities Regulatory Commission last month. Bloomberg reports that Invesco, which has operated a joint venture in China since 2003, wants to increase its China assets by more than 40% to $100 billion by 2023.
This April report by Z-Ben Advisors, a Shanghai-based consultancy, finds that JPMorgan Chase is the top foreign asset manager in China, followed by UBS Group, Invesco, BlackRock, Schroders, and Fidelity. According to Bloomberg, other global asset managers waiting for regulatory approval to operate fully-owned subsidiaries in China include Neuberger Berman, Van Eck Associates, AllianceBernstein and Schroders. None of these firms is bolting for the exits in China despite a ten-month regulatory blitz that has upended the nation’s tech, education, and entertainment sectors, and triggered a $2 trillion sell-off in China stocks traded on overseas exchanges.
Among global investors, sentiment on China is now starkly divided. At one extreme are uber-bears like Soros and Paul Marshall, co-founder of $59 billion investment firm Marshall Wace, who three weeks ago declared U.S.-listed China stocks “uninvestable.” At the other are long-term bulls like BlackRock CEO Larry Fink, Blackstone’s Stephen Schwarzman, and Bridgewater Associates founder Ray Dalio, who in July dismissed Beijing’s regulatory moves as policy “wiggles” rather a than a fundamental retreat from private markets.
At a Bloomberg conference yesterday, Dalio doubled down on that assessment, declaring China “a part of the world one can’t neglect.”
But even if Dalio and his compatriots are right, a crucial question for global investors remains: How to invest in China now?
Fortune contributor Gregor Stuart Hunter has a terrific in-depth analysis of exactly that question that we published moments ago. Mobius Capital Partners founding partner Carlos von Hardenberg tells Gregor that investors can still find $200 million companies in China that will be worth billions tomorrow. But there’s a catch: you have to search “very, very hard.”
Gregor’s entire piece is worth your time.
More Eastworld news below.
Clay Chandler
clay.chandler@fortune.com
This edition ofEastworldwas curated and produced by Nicholas Gordon. Reach him atnicholas.gordon@fortune.com
Eastworld News
Changing direction
Singapore is wavering on its strategy of managing, rather than eradicating, COVID-19. As community cases rise to record levels, its government has delayed the next phase of the city’s reopening. However, as the city’s high vaccination rate keeps serious cases low, the government announced that it would focus on hospitalizations, rather than linked and unlinked cases, in its COVID reports. Fortune
Frozen out of China
Shang-Chi and the Legend of the Ten Rings, the latest film from Marvel Studios and its first with an Asian lead, has had a blockbuster U.S. release. Yet the film has not been approved for release in China, the world’s largest movie market. One reason: Shang-Chi’s original connection to racist Fu Manchu stereotypes. Fortune
Competition in Korea
Shares in Kakao and Naver fell on Wednesday after the head of South Korea’s ruling Democratic Party warned them against following the path of the country’s chaebol conglomerates by engaging in monopolistic behavior and ignoring the importance of market competition. Kakao runs South Korea’s largest messaging and social media platform, while Naver owns the messaging platform Line. Both companies have seen their share prices surge in recent months as people stay at home due to the pandemic. Bloomberg
More gaming controls
China's authorities summoned gaming companies like Tencent and NetEase to a meeting on Wednesday to ensure that developers and publishers implement the country’s new playtime restrictions for minors. Authorities also urged gaming companies to more strictly control their content, such as references to “gay love,” and to avoid a “solitary focus of pursuing profit.” In addition, sources with knowledge of the discussions say that Beijing will suspend approvals of new online games. Fortune
Muhyiddin returns
Just weeks after being ousted as Malaysia’s prime minister, Muhyiddin Yassin is back as the head of Malaysia’s pandemic recovery council. This opens up a path for his eventual political return, as Center for Strategic and International Studies fellow Sophie Lemière notes for the SCMP. In his new position, Muhyiddin can take credit for any positive COVID news, while any mistakes can be blamed on Malaysia’s current prime minister, Ismail Sabri. SCMP
Markets and Movers
Paidy — PayPal announced that it would acquire Japan’s buy-now-pay-later service Paidy for $2.7 billion. Despite Japan being the world’s third-largest market for e-commerce, nearly three-quarters of all purchases there are made in cash. Paidy has thrived in the market by allowing customers to make cash payments through Japan’s convenience stores.
Goldman Sachs — The investment bank has named Kevin Sneader, the former head of McKinsey, as co-president for the Asia-Pacific region, excluding Japan. It’s Goldman’s most prominent outside hire for Asia ever. Sneader was global managing partner for McKinsey from July 2018 to July 2021, but was voted out amid a debate on how to manage several scandals, including the consultancy's work with opioid manufacturers.
Byju’s— Online educator Byju’s is accelerating its IPO plans. India's most valuable startup will likely choose a domestic listing instead of a listing overseas or a SPAC merger. India's stock markets have seen a record number of listings as investors look to alternate markets amid China’s crackdown.
Sea — Southeast Asia’s most valuable company is hoping to raise $6.3 billion in what will likely be the region's largest-ever capital raise. Sea wants tofurther expand outside of gaming into e-commerce and fintech and enter more markets outside of Southeast Asia, like Latin America.
China budget — China may have its first balanced budget in four decades. Revenue and expenditure were almost perfectly balanced in the first seven months of 2021, in contrast to the looser fiscal policy of other major economies. This is partly due to slashed spending, including a 36% decline in spending on environmental protection.
Final Figure
7.6%
Hong Kong’s economy expanded in the second quarter of 2021, growing 7.6% from a year earlier as the city recovers from 2019’s protests and 2020's COVID control measures. The city’s pace of growth now equals Singapore’s for the first time since 2008. Hong Kong has recorded almost zero local cases of COVID-19 over the past few months as Singapore struggles with a continued Delta outbreak.
FAQs
On Wednesday, BlackRock, the world's largest asset manager, said its Chinese subsidiary has set up its first mutual fund in the country after raising 6.68 billion yuan ($1.03 billion) from 111,000 Chinese investors.
How much has BlackRock lost in China? ›
BlackRock, Fidelity Lose Out in $1 Trillion China Pension Market.
What country is BlackRock owned by? ›
BlackRock, Inc. is an American multi-national investment company based in New York City. Founded in 1988, initially as an enterprise risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with US$8.6 trillion in assets under management as of December 31, 2022.
How much money does BlackRock have in China? ›
Consumers' Research also issued a "Consumer Warning" on Thursday morning highlighting some of BlackRock's work in China, noting that the investment company, which has about $10 trillion under its management, first opened its Beijing office in 2008.
Is BlackRock an ethical company? ›
Our reputation for integrity is one of our most important assets. We hold ourselves to standards that not only meet those required by the laws and regulations that apply to us, but also to our principles, which are rooted in exceeding our clients' expectations.
Who is the biggest owner of BlackRock? ›
Laurence D. Fink is the CEO and co-founder of BlackRock. Along with seven colleagues, he started the company. As of 31 January 2023, he owned 520,126 making him the biggest individual shareholder.
Is BlackRock more powerful than a country? ›
BlackRock, the world's biggest asset management firm, has been nominated for the 2022 Corporate Hall of Shame by our friends at Corporate Accountability. BlackRock has nearly $10 trillion in assets under management. That's more than the GDP of every country in the world except for the United States and China.
Does BlackRock own Pfizer? ›
Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 442.87MM shares of Pfizer Inc.
How much of America does BlackRock own? ›
Its very top position based on the percentage of company owned is real estate firm CBRE Group (CBRE). Vanguard owns nearly 17% of the company. BlackRock is the No. 2 holder with 10.2% of the company.
Does BlackRock own Tesla? ›
The combined holdings of the index fund industry's three giants — BlackRock, Vanguard and State Street — make up a 13.58% stake in Tesla, it found. Vanguard funds own 6.85% of Tesla, adding up to the second-biggest shareholder, while BlackRock and State Street funds have a 3.6% and 3.13% stake, respectively.
Since 2013, China has been Singapore's largest trading partner, and Singapore has been China's largest foreign investor.
Why does BlackRock invest in China? ›
'Surveillance Companies'
In 2019, BlackRock began investing in Hikvision and iFlytek, which are among 28 Chinese companies on the U.S. government's “entity list” because of repression of the Uyghur Muslim population in China's Xinjiang province.
What is the richest company in the world China? ›
10 Biggest Chinese Companies
- #1 PetroChina Co. Ltd. ( PCCYF)
- #2 JD.com Inc. ( 京东)
- #3 Ping An Insurance (Group) Co. of China Ltd. ( PNGAY)
- #4 China Construction Bank Corp. ( CICHY)
- #5 Tencent Holdings Ltd. ( TCEHY)
- #6 China Merchants Bank Co., Ltd. ( CIHKY)
- #7 BYD Co. Ltd. ( ...
- #8 Zijin Mining Group Co., Ltd. ( ZIJMF)
New York-based BlackRock is the first foreign-owned company allowed by Beijing to operate a wholly-owned business in China's burgeoning mutual fund industry.
Does BlackRock have a good reputation? ›
BlackRock has an overall rating of 4.1 out of 5, based on over 5,234 reviews left anonymously by employees. 82% of employees would recommend working at BlackRock to a friend and 77% have a positive outlook for the business.
Who is BlackRock biggest competitor? ›
BlackRock revenue is $17.9B. Among it's competitors, the company with the highest revenue is Morgan Stanley, $48.2B . The company with the lowest revenue is MFS Investment Management, $500.0M.
What banks are owned by BlackRock? ›
A stake in nearly everything.
BlackRock is also the sole shareholder and owner of shares in the four largest Australian banks. The company has hands-on everything. The German postal system, Commerzbank, and Deutsche Bank in Germany, followed by Lloyds Bank in the UK, and BlackRock is a stakeholder in all of them.
What family owns BlackRock? ›
2022 Billionaires Net Worth
Larry Fink is the founder, CEO and chairman of powerhouse investment management firm BlackRock, one of the world's largest asset managers. He and seven partners founded BlackRock in 1988.
How BlackRock owns the world? ›
BlackRock and Vanguard do not “own” all the biggest corporations in the world. They invest trillions of dollars into leading companies on behalf of their clients, who ultimately own the shares. This article was produced by the Reuters Fact Check team.
Does BlackRock own Walmart? ›
BlackRock, Inc., holds 3.60% of Walmart shares, worth about $13.6 billion. BlackRock, Inc., is a multinational investment company in New York City. It is the largest asset manager in the world, with about $10 trillion worth of assets as of January 2022.
The 100 largest companies in the world by market capitalization in 2022 (in billion U.S. dollars)
| Ranking of the companies from 1 to 100 | Market capitalization in billion U.S. dollars |
|---|
| Apple (United States) | 2,640.32 |
| Saudi Arabian Oil Company (Saudi Aramco) (Saudi Arabia) | 2,292.08 |
| Microsoft (United States) | 2,054.37 |
10 more rowsApr 18, 2023
BlackRock is one of the world's largest investment management companies by AUM. The company operates as a single business segment. The firm derives most of its revenue from investment advisory and administration fees.
Is Amazon owned by BlackRock? ›
The top three individual shareholders include Jeff Bezos, Andrew Jassy, and Douglas Herrington. Amazon's top three institutional shareholders are Vanguard, Blackrock, and State Street.
Does BlackRock own Johnson and Johnson? ›
ownership in JNJ / Johnson & Johnson - 13F, 13D, 13G Filings - Fintel.io.
...
BlackRock Inc. ownership in JNJ / Johnson & Johnson.
| Security | JNJ / Johnson & Johnson |
|---|
| Institution | BlackRock Inc. |
| Latest Disclosed Ownership | 198,802,769 shares |
| Ownership | 7.60% |
The company is also quite diversified, but it is heavily exposed to some large tech stocks. BlackRock's top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN). BLK owns $141 billion of AAPL stock, $120.8 billion of MSFT, and $65.8 billion of AMZN.
Does BlackRock own Disney? ›
According to CNN Business News, the Vanguard Group, Inc. is the largest shareholder of Walt Disney Co. with a 7.49% stake. Some of the other top shareholders of this company include BlackRock Fund Advisors, SSgA Funds Management Inc, and State Farm Investment Management.
Who owns the most stock in the US? ›
One of either Blackrock, Vanguard, or State Street is the largest shareholder in 88% of S&P 500 companies. They are the three largest owners of most DOW 30 companies. Overall, institutional investors (which may offer both active and passive funds) own 80% of all stock in the S&P 500.
Who controls the US stock market? ›
The SEC's regulation of the securities markets facilitates capital formation, which helps entrepreneurs start businesses and companies grow. Last year $5 trillion was raised in public and private securities offerings, promoting economic growth and job creation.
Is Apple under BlackRock? ›
ownership in AAPL / Apple Inc. 2023-02-07 - BlackRock Inc. has filed an SC 13G/A form with the Securities and Exchange Commission (SEC) disclosing ownership of 1,029,178,566 shares of Apple Inc (US:AAPL). This represents 6.5 percent ownership of the company.
Does BlackRock own companies in Russia? ›
Since then, BlackRock has earned more than $1.3bn in dividends for its clients through its shareholdings in 10 of Russia's most important companies, the Bureau's analysis of Bloomberg data has found.
Here is a list of the top companies that are stockholders in BlackRock and their stake percentages: The Vanguard Group, Inc. - 8.1% BlackRock Fund Advisors - 4.65%
Who is the most powerful investor in the world? ›
Warren Buffett is widely considered to be the most successful investor in history.
Who owns the most money to China? ›
At the end of 2021, of the 98 countries for whom data was available, Pakistan ($27.4 billion of external debt to China), Angola (22.0 billion), Ethiopia (7.4 billion), Kenya (7.4 billion) and Sri Lanka (7.2 billion) held the biggest debts to China.
What American companies are owned by Chinese investors? ›
American Companies You Didn't Know Were Owned By Chinese Investors
- AMC. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. ...
- General Motors. ...
- Spotify. ...
- Snapchat. ...
- Hilton Hotels. ...
- General Electric Appliance Division. ...
- 49 Comments.
The Vanguard Group, Inc. is an American registered investment advisor based in Malvern, Pennsylvania, with about $8 trillion in global assets under management, as of January 13, 2021.
...
The Vanguard Group.
| Type | Private |
|---|
| Owner | Clients |
| Number of employees | 18,800 (Jan 2022) |
| Website | www.vanguard.com |
9 more rowsownership in BABA / Alibaba Group Holding Limited ADR - 13F, 13D, 13G Filings - Fintel.io.
...
BlackRock Inc. ownership in BABA / Alibaba Group Holding Limited ADR.
| Security | BABA / Alibaba Group Holding Limited ADR |
|---|
| Institution | BlackRock Inc. |
| Latest Disclosed Ownership | 4,167,566 shares |
| Latest Disclosed Value | $ 333,363,000 |
BlackRock, the world's largest asset manager, has slashed its 88.3 percent stake in Alibaba (9999) in the second quarter, involving 74.03 million shares and cashing out around HK$117 billion.
Which US companies sell the most to China? ›
Casinos and chipmakers are among the U.S companies with the highest revenue exposure in China.
Which is the No 1 company in the world in China? ›
The Industrial and Commercial Bank of China was both China and the world's largest company by assets in 2021, with over US$5.5 trillion in total assets.
...
2022 Fortune Global 500 List.
| Name | China Communications Construction Company |
|---|
| Profit (US$ Million) | 1,397.3 |
|---|
| Assets (US$ Million) | 353,172.3 |
|---|
| Employees | 220,519 |
|---|
24 more columnsChina's largest private employer is Foxconn, a subsidiary of Taiwan's Hon Hai Precision Industry Company (commonly known as Foxconn).
SHANGHAI, June 11 (Reuters) - BlackRock Inc (BLK. N) has become the first global asset manager licensed to start a wholly owned onshore mutual fund business in China, as the government opens up the country's $3.5 trillion mutual fund industry.
Does China own Blackstone Group? ›
China Investment Corporation, China's sovereign wealth fund, has sold its stake in Blackstone Group, the American private equity giant, the latter said in a recent filing. The fund, known as C.I.C., did not disclose a reason for the sale, and neither side disclosed how big it was.
Who is the head of China strategy for BlackRock? ›
Susan Chan, Senior Managing Director, is the Deputy Head of Asia Pacific, Head of Greater China and Head of Trading, Liquidity and Lending Asia Pacific at BlackRock. A member of BlackRock's Global Executive Committee, Ms. Chan also serves on the firm's Asia Pacific Executive and Steering Committees.
Is it safe to invest in BlackRock? ›
Summary. BlackRock has solid fundamentals and is fairly valued, making it a reliable investment option. BlackRock has some decent growth opportunities and limited risks.
Is BlackRock in debt? ›
BlackRock long term debt for 2022 was $12.419B, a 14.51% decline from 2021.
How powerful is BlackRock? ›
BlackRock is the world's largest financial adviser, and millions of people are invested in the stock market through its index-tracking funds. A crack team inside the firm has a different sort of mandate: It counsels heads of state, central banks and financial institutions in times of crisis.
Who is BlackRock's rival? ›
BlackRock's competitors and similar companies include Charles Schwab, Northern Trust, Fidelity Investments, State Street, Vanguard, Berkshire Hathaway and Edward Jones.
Who is bigger Fidelity or BlackRock? ›
BlackRock's brand is ranked #602 in the list of Global Top 1000 Brands, as rated by customers of BlackRock. Their current market cap is $108.30B. Fidelity Investments's brand is ranked #162 in the list of Global Top 1000 Brands, as rated by customers of Fidelity Investments.
What is BlackRock most known for? ›
BlackRock is one of the world's leading providers of investment, advisory and risk management solutions. We are a fiduciary to our clients. We're investing for the future on behalf of our clients, inspiring our employees, and supporting our local communities.
How much money has BlackRock lost? ›
Bloomberg Evening Briefing: How BlackRock Lost $1.7 Trillion in Six Months - Bloomberg.
DAVOS, Switzerland, Jan 17 (Reuters) - BlackRock (BLK. N), the world's biggest asset manager, lost around $4 billion in assets under management as a result of a political backlash against environmental, social and governance (ESG) investing in the United States, its chief executive said.
How much did BlackRock invest in China? ›
On Wednesday, BlackRock, the world's largest asset manager, said its Chinese subsidiary has set up its first mutual fund in the country after raising 6.68 billion yuan ($1.03 billion) from 111,000 Chinese investors.
How much does Blackstone have invested in China? ›
Blackstone will invest a further $250 million in Beijing-based data centre developer VNET Group, as the US private equity giant looks to jump-start a bet that has suffered in the wake of China's crackdown on domestic firms listing on American exchanges.
Is BlackRock investment in trouble? ›
DAVOS, Switzerland (Reuters) - BlackRock, the world's biggest asset manager, lost around $4 billion in assets under management as a result of a political backlash against environmental, social and governance (ESG) investing in the United States, its chief executive said.
Where did BlackRock get all its money? ›
1 BlackRock derives the majority of its revenue from investment advisory and administrative fees charged to its clients. Among BlackRock's major competitors are The Vanguard Group, State Street Corp. (STT), and T. Rowe Price Group Inc.
How rich is the owner of BlackRock? ›
Why are people pulling their money out of BlackRock? ›
The Republicans leading the backlash say they're concerned BlackRock's sustainable investment policies endanger the U.S. energy industry, and fall outside of the firm's fiduciary duty to deliver returns to shareholders. Others, however, say the reaction is politically motivated, and driven by oil and gas lobbyists.
How is BlackRock doing financially? ›
BlackRock Reports Full Year 2022 Diluted EPS of $33.97, or $35.36 as adjusted. New York, January 13, 2023 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2022.
Who is suing BlackRock? ›
Ary Rosenbaum - The Rosenbaum Law Firm P.C. A U.S. District Court judge threw out a case against Microsoft which claimed that the BlackRock LifePath Index Funds suite of target-date funds was an imprudent investment choice for their plan participants.
Who invests the most in China? ›
Among them, Germany stands out as the top investor by far, making up 43% of the total, on average, over the past four years, compared to 34% in the previous 10 years. In 2018, German firms accounted for more than half of all European investment in China.
Although China's holdings have represented just under 20 percent of foreign-owned U.S. debt in the past several years, this percentage only comprises between 5 and 7 percent of total U.S. debt. China's holdings fell to $1.05 trillion in November 2016, marking the lowest level since 2010.
Does Blackstone have exposure to China? ›
Blackstone has ramped up investments in China in recent years, particularly in logistics parks and warehouses. The company owns about 6 million square meters of properties in China, according to a June filing, or the equivalent of about 64.6 million square feet.
Do the Chinese own the Blackstone Group? ›
China Investment Corporation, China's sovereign wealth fund, has sold its stake in Blackstone Group, the American private equity giant, the latter said in a recent filing.
