American fund manager BlackRock has reportedly received Qualified Domestic Limited Partnership (QDLP) license that will enable it to raise funds in China directly for the first time.
BlackRock, which has nearly $4.5 trillion in assets, will do whatever that entails to provide asset management services in China, BlackRock vice chairman Philipp Hildebrand told Reuters in an interview.
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The new licence will allow BlackRock to raise funds onshore from high-net-worth (HNW) Chinese investors through a wholly owned fund management company.
However, Hildebrand refused to discuss targets for BlackRock’s business in China.
"We also recognize that it’s a long-term proposition and we’re ready to stay for the duration. I think we’ve shown to the authorities and to the market that we’re there.
"It will have repercussions, it will mean lower growth rates but I think the Chinese government knows that and accepts that as the natural consequence of this desirable reform effort," he was quoted as saying by Reuters.
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By GlobalDataIn 2014, BlackRock won two Renminbi Qualified Foreign Institutional Investor (RQFII) licenses, which allows it to purchase stocks and bonds in China. It also holds a stake in a joint venture with Bank of China Investment Management.
