BlackRock CEO Says China Remains a Big Opportunity for Firm
Zhou Ailin
DATE:  Jun 18 2020
/ SOURCE:  Yicai
BlackRock CEO Says China Remains a Big Opportunity for Firm BlackRock CEO Says China Remains a Big Opportunity for Firm

(Yicai Global) June 18 -- BlackRock still regards China as one of its key long-term investment prospects, Chief Executive Larry Fink said today.

“We firmly believe China will be one of the biggest opportunities for BlackRock,” Fink said via video conference at the ongoing 12th Lujiazui Forum.

The world will be a different place following the coronavirus pandemic, with changes likely in investor psychology, business models and consumer habits, the head of world’s largest asset manager said. Everyone needs to reassess the way they do business, live and travel.

A sustainable portfolio can provide investors with better returns and this can be reflected by investing in China, Fink said.

The pandemic is different from the financial crisis, he said. The world has so far avoided a catastrophic fallout thanks to a slew of aggressive monetary and fiscal policies rolled out by policy makers in good time. China's economic stimulus has also been quite effective in helping sectors in difficulty.

New York-based BlackRock continues to invest in its presence in China and local investment expertise, so it can help clients navigate this large and growing opportunity as they seek exposure to China’s onshore assets, Fink said. It is encouraging to hear about China's continued commitment to further opening its markets and engaging in international cooperation, he added.

BlackRock has consistently been ahead of the curve as China gradually opened up its capital markets to foreign investment in recent years. In 2017, the New York-based firm registered its Shanghai unit as a private equity investment fund manager, one of the first foreign money managers to do so.

On April 1, together with fellow US asset manager Neuberger Berman, they were the first to apply to set up a wholly owned mutual fund business in China, the same day that Chinese regulators lifted foreign ownership limits in the securities and public fund management sectors.

Over 90 percent of overseas funded asset managers with a China presence are based in Shanghai. Twenty-three out of the 26 foreign firms with private equity fund licenses in China have offices in the city's financial hub Lujiazui.

Editors: Dou Shicong, Kim Taylor

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Keywords:   BlackRock,Lujiazui Forum,Shanghai