Move is being closely watched by global players as they prepare to enter China’s highly competitive mutual funds market.
Published On 8 Sep 20218 Sep 2021
BlackRock’s China mutual fund subsidiary has set up its first fund in the country after raising 6.68 billion yuan ($1.03bn) during a shortened subscription period, signalling a warm reception by investors.
Wednesday’s disclosure came a day after billionaire investor George Soros said it was a mistake for BlackRock to invest in China now, and likely to lose money for the US fund giant’s clients.
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BlackRock, the first foreign asset manager to operate a wholly owned business in China’s $3.6 trillion mutual fund industry, said its newly launched China equity fund had raised 6.68 billion yuan ($1.03bn) from more than 111,000 investors.
The BlackRock China New Horizon Mixed Securities Investment Fund, launched on August 30, stopped taking new subscriptions on September 3, a week earlier than planned.
“We are very proud of achieving this milestone for our China fund management business, and are grateful for investors’ overwhelming support,” Rachel Lord, BlackRock’s chair and head of Asia Pacific, said in a statement.
The fundraising by the world’s biggest asset manager is being closely watched as more global players prepare to enter China’s fast-growing, but highly competitive mutual fund market.
Fidelity International is setting up its mutual fund subsidiary in China, while Neuberger Berman, Schroders PLC and VanEck have also applied to set up China units to sell retail funds. Beijing scrapped a foreign ownership cap in the sector on April 1, 2020.
Strong year
Writing in the Wall Street Journal on Tuesday, Soros had called BlackRock’s investment in China a tragic mistake that would damage the national security interests of the United States and other democracies.
While BlackRock faces a challenge appealing to yield-hungry Chinese retail investors in a crowded industry dominated by local firms, it is tapping the market in one of its strongest years. New mutual funds have raised more than 2 trillion yuan ($309.4bn) this year through August, already the second highest annual amount ever, only trailing last year’s record 3.1 trillion yuan ($479.5bn).
BlackRock has been issuing mutual fund products with Bank of China Investment Management, which it has held a stake in since 2006. The company also tested the waters a few years ago with a private securities fund business, which ceased operations after it won the mutual fund licence as required under Chinese rules.
On Wednesday, Chi Zhang, general manager of Shanghai-based BlackRock Fund Management Co, said the asset manager was committed to bringing long-term investment opportunities for Chinese investors, leveraging its track record in investing in China A-shares and its expertise.
FAQs
The select committee on China alleges BlackRock has five funds with more than $429 million invested in Chinese companies acting against US interests.
Did BlackRock invest in China military? ›
In the letters, Chairman Gallagher and Ranking Member Krishnamoorthi write, "Our review has shown that, as a direct result of decisions made by (BlackRock/MSCI), these Americans are now unwittingly funding PRC (People's Republic of China) companies that develop and build weapons for the People's Liberation Army (PLA)— ...
Who is BlackRock owned by? ›
BlackRock is publicly owned, with its shares held by various shareholders, including institutional investors like Vanguard Group and State Street Corporation and individual shareholders. The specifics of these shareholders can change over time.
Who are the largest shareholders of BlackRock? ›
Shareholders
| Name | Equities | % |
|---|
| Vanguard Fiduciary Trust Co. 8.655 % | 12,890,245 | 8.655 % |
| BlackRock Advisors LLC 5.040 % | 7,507,178 | 5.040 % |
| STATE STREET CORPORATION 3.932 % | 5,855,798 | 3.932 % |
| Merrill Lynch International 3.480 % | 5,183,005 | 3.480 % |
6 more rowsIn August 2021, BlackRock set up its first mutual fund in China after raising over one billion dollars from 111,000 Chinese investors. BlackRock became the first foreign-owned company allowed by the Chinese government to operate a wholly-owned business in China's mutual fund industry.
Is BlackRock the richest company in the world? ›
Key Points. BlackRock is the world's largest investment manager, with $10 trillion of assets under management. There's a lot of misunderstanding about the companies BlackRock owns and what it does.
What is BlackRock doing in China? ›
BlackRock's business in China has made great strides – from launching a fund management business and a wealth management joint venture, developing various investment capabilities across equities, fixed income and multi-asset strategies, to building a robust local team and growing leaders from within our business.
What is the Chinese name for BlackRock? ›
For example, the official name of the giant fund manager BlackRock Inc. is 贝莱德资产管理.
Is BlackRock government owned? ›
BlackRock is an independently managed public company with no single majority stockholder. The PNC Financial Services Group, Inc. has a minority ownership stake in BlackRock with the remainder owned by institutional and individual investors, as well as BlackRock employees.
What is Larry Fink salary? ›
BlackRock's CEO took home $26.9m for fiscal year 2023.
BlackRock's chief executive, Larry Fink, took a roughly 18% pay cut in fiscal year 2023, seeing his total compensation reduced from $32.5m in 2022 to $26.9m last year, according to the firm's most recent proxy report.
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. BlackRock said that it has halted purchases of Russian securities amid Russia's invasion of Ukraine.
How much does the CEO of BlackRock earn? ›
April 4 (Reuters) - BlackRock (BLK. N) , opens new tab CEO Laurence Fink's total pay for 2023 was $26.9 million, down from $32.7 million a year earlier, according to the company's regulatory filings on Thursday.
Does BlackRock own Amazon? ›
Blackrock
With 613.38 million shares valued at $90.18 billion, it ranks as the third-largest shareholder among Amazon's top ten and the second-biggest institutional shareholder. These holdings represent 5.94% of Amazon's total outstanding stock. As of September 30, 2023, Blackrock managed assets totaling $9.1 trillion.
How much of Apple does BlackRock own? ›
BlackRock Inc. ownership in AAPL / Apple Inc.
| Security | AAPL / Apple Inc. |
|---|
| Institution | BlackRock Inc. |
| Latest Disclosed Ownership | 1,043,713,019 shares |
| Ownership | 6.70% |
Some examples of companies that are currently larger than BlackRock in terms of market capitalization include: - Apple Inc. - Facebook Inc. - Tesla Inc.
Who is the biggest investors in China? ›
Hong Kong, the Virgin Islands, Japan, Singapore and the United States are among the major investors (data U.S. Trade Administration). Investments are mainly oriented towards manufacturing, real estate, leasing business and services, and computer services.
Who owns the biggest companies in China? ›
Many of China's largest companies are state-owned enterprises, due to the significant presence of the Chinese government in the national economy. The headquarters of the electric utility company State Grid in Beijing.
Does BlackRock own Alibaba? ›
SoftBank Group Corp. is currently the company's largest shareholder with 24% of shares outstanding. With 2.8% and 2.5% of the shares outstanding respectively, The Vanguard Group, Inc. and BlackRock, Inc. are the second and third largest shareholders.
How much does BlackRock own in the world? ›
Now, it is the world's largest asset manager with $10 trillion currently in its portfolio. According to Marketwatch, there is currently around $40 trillion in circulation around the world — which means BlackRock manages a quarter of the world's money.
