BlackRock to launch first ETF product in China this year, recruiting in Shanghai
BlackRock, the world's largest fund manager, is planning to enter China's domestic exchange-traded fund (ETF) market later this year with its first onshore ETF product, according to Reuters, citing people familiar with the matter. BlackRock is said to have started recruiting relevant staff.
BlackRock has capitalized on the passive investment boom in recent years and has seen its asset management scale grow. Of the $10 trillion or so global portfolio managed by BlackRock, 70% is in ETFs and index funds. If the fund eventually comes to fruition, BlackRock will be the first wholly foreign-owned fund management company to enter the ETF market in China.
The fund, to be launched in the fourth quarter, is expected to be about 6.8 billion yuan ($1.07 billion) in size and will invest in the stock markets of mainland China and Hong Kong and open its doors to domestic institutions and retail investors, according to people familiar with the matter.