CBIRC Green-lights BlackRock-Temasek-CCB Joint Venture

The wealth management joint venture is said to have received approval to commence establishment, with control resting with the two foreign institutions.

The CBIRC (China Banking and Insurance Regulatory Commission) has granted approval to BlackRock, Temasek Holdings and China Construction Bank to form a wealth management joint venture.

“BlackRock Financial Management of the United States and CCB Wealth Management and Fullerton Management, a subsidiary of Temasek in Singapore, jointly established a foreign-controlled BlackRock Financial Management in Shanghai,” the CBIRC said in a summary of a media interview given by a spokesperson in Saturday (22 August).

The joint venture – to be known as BlackRock-CCB Wealth Management Company – will be foreign-controlled, the CBIRC said without specifying further details. BlackRock and Temasek are said to jointly hold 60 percent ownership of the joint venture.

In December, Amundi Asset Management, Europe’s largest asset management company, became the first foreign firm to win approval to set up a majority-owned wealth management joint venture in China. The venture at the time was expected to be launched during the second half of 2020, with BOC Wealth Management holding a 45 percent stake.

The CBIRC also noted that American insurer Chubb has increased its stake in China’s Huatai Insurance Group to 46.2 percent, making it the domestic insurer’s largest shareholder.

The regulator said it has allowed foreign banks and insurance companies to set up nearly 100 institutions in China since 2018, and that some foreign-funded institutions from Asia, Europe, and the Americas are now conducting market research.

“Some have clarified plans to expand their business in China, and some have submitted preliminary applications to open institutions,” the CBIRC said.

“It is expected that more foreign-funded institutions will participate in [China’s] financial market in the coming period and become a viable force for the high-quality development of the country’s financial industry.”

BlackRock has also applied for a mutual fund licence in China, following the removal of foreign ownership restrictions for fund management companies and securities firms on 1 April.

Editor’s Note: An earlier version of this article incorrectly stated that the JV had already been established. 

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