Larry Fink, CEO of BlackRock, named China as one of the company’s top priorities for the year, following the country’s recent opening-up of its markets to foreign asset managers, the Financial Times reports.
China was highlighted in Fink’s annual letter to shareholders as one of three main trends with the potential to “dramatically reshape our firm and our industry”, alongside changes to the global retirement market and the role of technology in the economy.
Speaking on high-growth markets such as China, Fink wrote: “demographic, economic and regulatory shifts – including high savings rates and rapid growth in household financial assets in these markets – will create significant opportunities.”
BlackRock, the world’s largest financial institution with $6.29 trillion under management, still has a relatively limited exposure to Asia-Pac countries, particularly China. With the introduction of new foreign-friendly regulation by Beijing, however, the company is looking to take advantage of China’s growing mutual fund industry, which according to estimates by UBS, is set to reach $7.5 trillion by 2025.