The China Banking and Insurance Regulatory Commission (CBIRC) has given the go-ahead to the wealth management joint venture (JV) between BlackRock, Temasek and China Construction Bank (CCB).
No other details on the JV were disclosed.
“This partnership is consistent with the U.S.-China efforts to open the Chinese market to US financial services firms,” Bloomberg quoted US-based asset manager BlackRock as saying.
In December last year, BlackRock and Singaporean investment firm Temasek reportedly inked a non-binding agreement with CCB to take a controlling stake in the new JV.
The latest move is the result of China’s financial sector liberalisation plan to increase competition in the sector.
Last year, CBIRC approved Amundi’s asset management JV with BOC Wealth Management, a Bank of China unit.
This January, Caixin reported that American investment bank Goldman Sachs is in talks with the wealth management arm of ICBC to launch a majority-owned China JV.
China recently also enabled foreign banks’ local branches in the country to gain access to fund custody business and also lifted quota limits for QFII and RQFII.
Besides, the country removed foreign ownership restrictions in the fund management and securities businesses.
In June this year, JPMorgan obtained the green light to assume full control of China futures business.
The China Securities Regulatory Commission (CSRC), the country’s securities watchdog, has cleared the application of JPMorgan to operate the first entirely foreign-owned futures business in the country.
Several banks are looking to tap China’s market.
Among them is HSBC, which is set to hire 2,000 to 3,000 wealth planners in China over four years.
Meanwhile, UBS reportedly plans to double the existing headcount of 400 at its China investment banking JV in the next three to four years.