Global asset manager BlackRock has de-registered a private fund unit in Shanghai as it prepares to launch its mutual fund business in the world’s second-biggest economy, reported Reuters.
BlackRock last week voluntarily cancelled the business registration of its wholly foreign-owned enterprise (WFOE) unit in Shanghai, according to the website of the Asset Management Association of China (AMAC).
China fully opened its $3.3 trillion mutual fund industry to foreign managers last April. Global players including BlackRock, Fidelity International, Neuberger Berman and Schroders have applied to set up mutual fund units in China. But not all are confident of succeeding in a market crowded with 147 players and 8,202 mutual fund products.
BlackRock registered its Shanghai WFOE in late 2017 as a platform to launch private funds locally. The business was deemed non-essential after China’s full deregulation of its mutual fund market, reported Reuters.