China has approved a wealth management joint venture between U.S. asset manager BlackRock Inc (BLK.N), Singapore state investor Temasek Holdings (Pte) Ltd and China Construction Bank Corp (CCB) (0939.HK), as China gradually opens up its financial sector to international firms.
China’s government looks to open up its financial market to foreign firms, offering potentially rich rewards for international fund managers and others in the broader financial sector. Top global financial players have long sought to increase their presence in the relatively fast-growing Chinese economy, and in October last year China scrapped some restrictions on foreign banks’ operations in the country. Two months later France-based Amundi, Europe’s largest asset manager, and Bank of China Wealth Management won approval from Chinese regulators to set up a joint venture, while banks including UBS (UBSG.S) and JPMorgan Chase (JPM.N) have won approval to set up majority-owned China ventures.