BlackRock, Temasek Set Up China Asset-Management Joint Venture

BlackRock Inc. and Singapore’sTemasek Holdings Pte received approval to jointly build an asset-management business in China with one its biggest banks, bolstering the U.S. company’s expansion in the nation.

BlackRock said that it, along with, state investorTemasek andChina Construction Bank Corp. received a license from theChina Banking and Insurance Regulatory Commission.

“This partnership is consistent with the U.S.-China efforts to open the Chinese market to US financial services firms,” BlackRock, the world’s largest asset manager, said in an emailed statement on Saturday.

BlackRock is the second foreign company to receive the license and joins the world’s largest asset managers and investment banks likeJPMorgan Chase & Co in expanding in the Asian nation. While the further liberalization of the sector in China has been overshadowed by the virus crisis, companies are still pursuing plans for a market in which the value of retail funds alone could reach$3.4 trillion in three years.

BlackRock Chief Executive Officer Larry Fink said Chinaremains one of the firm’s top regions for growth despite uncertainties brought on by tensions with the U.S. and the virus. Even with current trade tensions, China will continue to attract global investments, especially in Shanghai, as more investors seek exposure to onshore assets, Fink said in June.

With more than $7 trillion assets under management, BlackRock is attempting to crack the China market in multiple ways. Led in the region by Geraldine Buckingham in Hong Kong, the company is also applying for licenses to set up wholly-owned mutual fund firms in China, people familiar have said. That’s in addition to holding a 16.5% stake in a joint venture with Bank of China Ltd.

Amundi SA, Europe’s largest asset-management company, andBOC Wealth Management, the subsidiary of Bank of China, receivedapproval in December to set up a wealth-management venture.

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