In a first, BlackRock’s mutual fund subsidiary in China established a fund after raising $1.03 billion (6.68 billion yuan) in a shortened subscription period.
With this development BlackRock has become the first foreign asset manager to operate a wholly-owned business in China’s $3.6 trillion mutual fund industry, said the asset manager on Wednesday while adding, it raised 6.68 billion yuan from more than 111,000 investors.
Its BlackRock China New Horizon Mixed Securities Investment Fund, which was 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,” said Rachel Lord, BlackRock’s Chair and Head of Asia Pacific.
The fundraiser was closely watched with more global players preparing to enter China’s highly-competitive mutual fund market.
The development comes in the wake of China scrapping a foreign ownership cap on the sector on April 1, 2020.
Incidentally, BlackRock had entered the Chinese market more than 15 years ago; it also owns a minority-owned mutual fund venture in China.
($1 = 6.4662 Chinese yuan)