HONG KONG, Dec 15 (Reuters) - 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 have quotas.
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