Chinese mutual fund BlackRock has launched its first fund in the country, raising 6.68 billion yuan ($1.03 billion) during a shortened subscription period, signalling a warm reception from investors.
Wednesday's disclosure came a day after billionaire investor George Soros said BlackRock was wrong to invest in China now and was likely to lose money to clients of the US stock giant.
BlackRock (BLK.N) , the first foreign asset manager to run a wholly owned business in China's $3.6 trillion mutual fund industry, said the newly created Chinese private equity fund has raised 6.68 billion yuan from more than 111,000 investors.
The BlackRock China New Horizon mixed securities investment fund, launched on 30 August, stopped taking new subscriptions on 3 September, a week earlier than planned.
"We are very proud to have reached this milestone for our China fund management business and are grateful for the unconditional support from investors," said Rachel Lord, BlackRock chairman and head of Asia Pacific.
Fundraising by the world's largest asset manager is being closely watched as more global players prepare to enter China's fast-growing but highly competitive mutual fund market.
Fidelity International is setting up a mutual fund subsidiary in China, while Neuberger Berman, Schroders PLC (SDR.L) and VanEck have also applied to set up Chinese units to sell retail funds. Beijing lifted the restriction on foreign ownership in this sector on 1 April 2020.
In the metatrader 4 exness, experts believe BlackRock's investment in China is a tragic mistake that will damage the national security interests of the US and other democracies.
On Wednesday, Chi Zhang, general manager of Shanghai-based BlackRock Fund Management Co, said the asset manager aims to provide Chinese investors with long-term investment opportunities through its experience investing in Chinese A-shares and its expertise.
BlackRock, which entered China more than 15 years ago, also owns a minority-owned Chinese mutual fund and recently set up a Chinese capital management venture with a controlling stake.
(1 US dollar = 6.4662 Chinese yuan)
