New York based investment management firm BlackRock Inc. (BLK) is planning to launch its first ever China exchange-traded fund (ETF) product this year. Sources with direct involvement in the matter have revealed that the product will be launched in China’s $220 billion onshore ETF market and BlackRock has already started hiring staff.
BlackRock manages overseas assets of several of China’s large state-backed investors such as the country’s sovereign wealth fund and national pension fund through offshore units because all products sold are foreign-domiciled.
The source revealed that the first BlackRock ETF product launch is slated for the four quarter and it will add up to 6.8 billion yuan ($1.07 billion) worth of assets managed by BlackRock through two mutual funds with investments in Chinese and Hong Kong stocks.
“Several index providers have started talks with BlackRock but the fund manager is yet to decide which index to track for the first ETF product,” said the source.
BlackRock said it’s investing in more local Chinese talent to support its growth priority.
“BlackRock is committed to helping more Chinese investors achieve their financial goals by bringing them a broader suite of investment products and solutions, including ETF and index investments,” said BlackRock.