HONG KONG Dec 15 BlackRock has become
the first asset manager globally to be awarded a license to buy
Chinese stocks and bonds under a $38 billion United States quota
scheme announced in June.
The company has been awarded the first license under the
U.S. Renminbi Qualified Foreign Institutional Investor (RQFII)
scheme, but has not yet received its quota, a spokesman for
world's largest asset manager said.
The Chinese government said in June it would give the United
States a 250 billion yuan ($38 billion) investment quota for the
first time to buy mainland Chinese assets, in a bid to deepen
financial ties and interdependence between the world's two
largest economies and help internationalise the yuan.
The United States quota is second in size only to Hong Kong
for a single jurisdiction. The UK, France and Singapore also
BlackRock already has 24.1 billion yuan of RQFII quota
awarded the other RQFII schemes, and has $1.25 billion of quota
through the US dollar-denominated version of the scheme known as
QFII. The investment manager also has a special license to raise
funds onshore in China to investment offshore. [here
"China is an important market for our clients globally and
will only grow in importance as it continues to transform and
internationalize its capital markets," BlackRock's Asia Pacific
chairman Ryan Stork said in the statement.
The U.S. RQFII license has been granted to BlackRock Fund
Advisors, a U.S. subsidiary of BlackRock, to invest in mainland
China's domestic capital markets, including the A-share stock
and onshore bond markets, BlackRock said.
(Reporting by Michelle Price; Editing by Edwina Gibbs)