Currently, the U.S. firm manages overseas assets of a handful of China's large state-backed investors such as the country's sovereign wealth fund and national pension fund via offshore units, as all products sold are foreign-domiciled.<\/p>\n
The first BlackRock ETF product launch is scheduled for the fourth quarter, said the people, which will add to 6.8 billion yuan ($1.07 billion) worth of assets BlackRock manages through two mutual funds with investments in Chinese and Hong Kong stocks.<\/p>\n
The headquarters of Blackrock, Inc in New York City. (iStock)<\/span><\/p>\n Several index providers have started talks with BlackRock, but the fund manager is yet to decide which index to track for the first ETF product, the people said.<\/p>\n Options under consideration include a carbon neutrality-themed index composed by China Securities Index Co, one of the people said. China has seen dozens of environment-linked ETF launches in the last two years betting on buoyant new-energy stocks.<\/p>\n BLACKROCK DISMISSES 3 MANAGING DIRECTORS FOR ENGAGING IN 'COORDINATED' EFFORT TO QUIT<\/strong><\/p>\n "BlackRock is committed to helping more Chinese investors achieve their financial goals by bringing them a broader suite of investment products and solutions, including ETF and index investments," the company said in a statement to Reuters.<\/p>\n It said it is "investing in more local talent" to support its "growth priority".<\/p>\n China Securities Index did not immediately respond to a request for comment.<\/p>\n Laurence Fink, founder and chief executive officer of BlackRock, Inc. REUTERS\/Lucas Jackson<\/span> (REUTERS\/Lucas Jackson \/ Reuters Photos)<\/span><\/p>\n BlackRock's planned foray into the fast-growing Chinese ETF market comes against the backdrop of continued opening up of the financial market in the world's second-largest economy.<\/p>\n The move will also bolster the fund manager's presence in China, after it became the first global asset manager licensed to start a wholly owned onshore mutual fund business in the country last year.<\/p>\n CONSUMERS' RESEARCH BLASTS BLACKROCK'S LARRY FINK FOR GOING 'ALL-IN ON CHINA'<\/strong><\/p>\n BlackRock's ETF operation in China is set to open doors to local institutional as well as retail investors.<\/p>\n LUCRATIVE MARKET<\/p>\n China's nascent $220 billion ETF market with over 600 products as at the end of 2021 has only in recent years started contributing meaningfully to a global passive fund boom that catapulted the sector beyond $10 trillion in value.<\/p>\n Assets in China's onshore ETFs expanded 30.5% in 2021, almost on a par with the 31.9% growth rate of U.S. ETFs, but better than European peers' 24.7% growth, showed data from the Shenzhen Stock Exchange.<\/p>\n BlackRock's iShares, which "remained a significant growth driver" in 2021, according to Chairman and Chief Executive Larry Fink, drew in $306 billion assets last year, accounting for 57% of new money into all of the firm's active and passive offerings.<\/p>\n BLACKROCK RESPONDS TO SOROS' CRITICISM OF ITS CHINA INVESTMENTS<\/strong><\/p>\n For its China ETF foray, BlackRock is recruiting for roles across ETF portfolio management, operations and focused marketing, said the two people. The firm initially plans to form a team of five to six employees, they said.<\/p>\n Measures to stop the spread of COVID-19 have largely curbed business activity in Shanghai, with candidate interviews being moved online, one of the people said. <\/p>\n BlackRock's Shanghai office currently has at least 70 staff, showed fund association data, and is set to recruit over 15 more, excluding the ETF hires, company job adverts showed.<\/p>\n Since China allowed fully foreign-owned fund units in 2019, a flurry of foreign fund houses, including U.S.-based ETF specialist VanEck, has applied for licences to operate in the local fund market.<\/p>\n![](\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2019\/08\/931\/523\/BlackRock-Inc.-iStock.jpg?ve=1&tl=1\")
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\n \nTicker<\/th>\n Security<\/th>\n Last<\/th>\n Change<\/th>\n Change %<\/th>\n<\/tr>\n<\/thead>\n \n BLK<\/td>\n BLACKROCK INC.<\/td>\n 714.82<\/td>\n -1.94<\/td>\n -0.27%<\/td>\n<\/tr>\n \n <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n