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Bloomberg
BlackRock Inc., the world’s largest money manager, said it is preparing to start a private fund in China after the nation opened the market wider to global players.
The firm plans to set up a wholly foreign-owned enterprise (WFOE) first for its private fund business in the nation, according to Chen Ting, general manager at BlackRock Overseas Investment Fund Management (Shanghai) Co. Chen spoke at a press briefing organized by the Lujiazui Administration Bureau in Shanghai.
Global fund managers have rushed to the world’s second-biggest economy as it quickens opening its capital markets to help counter outflows and promote global use of the yuan. Fidelity International in May beat global peers to start a private fund in Shanghai. UBS Asset Management also secured a license to offer such funds for onshore stock, bond and multi-asset investment, it said last week. Private fund companies can sell products to rich individuals and institutional investors.
“The coming of foreign institutions will inject new blood into the market in China,†Chen said.
Jackson Lee, China country head of Fidelity, said at the same briefing that he hopes the company will launch its second onshore private fund by the end of this year. Fidelity’s first fund focuses on fixed income.