American asset manager BlackRock and Singaporean investment firm Temasek are in talks to launch an asset management business in China in association with China Construction Bank.

The investment firms struck a non-binding agreement with China Construction Bank to take a controlling stake in the new venture, reported Bloomberg.

The firms will develop and distribute products for investors in China, the report said.

The agreement, said to be the first of its type for BlackRock, awaits regulatory nod.

The development comes amidst a massive shake-up in China’s financial market, which involved opening up of the market to foreign players.

Last year, UBS became the first foreign bank to take a majority stake in a China business under new rules.

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A couple of days ago, JPMorgan Chase received the final regulatory nod from the China Securities Regulatory Commission (CSRC) to open its majority-owned securities joint venture (JV) in China.

BlackRock CEO Larry Fink sees the China market as one of the largest growth avenues for the firm.

At the end of last year, Asia Pacific accounted for nearly 7% of BlackRock’s assets under management.

In June 2019, BlackRock started offering onshore investment advisory services in China after completing the registration of the service with the Asset Management Association of China.

Earlier this year, BlackRock appointed Tony Tang as the head of its China business.