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Chinese regulators have approved Blackrock’s application to sell mutual funds in the country through its Blackrock Fund Management Co., a wholly-owned, Shanghai-based subsidiary.
Blackrock, the world’s largest asset manager with about $9 trillion in its portfolio, has six months to begin offering funds made up of Chinese stocks, the Wall Street Journal reported.
Last month, China’s regulators permitted Blackrock to proceed with a wealth management service in partnership with the China Construction Bank and Temasek, Singapore’s national investment arm.
TREND FORECAST: As we have reported (“Blackrock Launches Wealth Management Service in China,” 18 May, 2021), at the end of 2020, China’s households were estimated to have wealth valued at $18.9 trillion to invest.
Western financial firms, including Citi, Fidelity, HSBC, JPMorgan Chase, and French asset manager Amundi all are turning to China as their engine of growth. Bringing western financial trillions to China’s businesses and investors will significantly accelerate the country’s growing dominance in world financial markets.
And as we had forecast, while politicians and activists protest China’s human rights violations in Hong Kong, Tibet, and among its Uyghur Muslim minority, profiteers will single-mindedly continue pursuing profit. Also, as China’s economy grows, the West will become increasingly dependent on it for manufactured goods as well as profits from selling services there, such as wealth management.