BlackRock raises US$1 billion with first Chinese mutual fund even as George Soros calls China investment a ‘tragic mistake’

New York-based BlackRock, which has been bullish on rising incomes and the growth potential in China, won a licence in June to become the first global asset manager to start a wholly-owned onshore mutual fund business in the world’s second-largest economy. Before receiving its licence, the company had issued funds in China through its fund-management joint venture with state-owned Bank of China since 2006.

The BlackRock New Horizon Mixed Securities Investment Fund attracted more than 111,000 subscribers over a five-day fundraising period the ended September 3, the company said in an announcement on Wednesday. The fund was officially established on Tuesday, the company said.

“We are committed to bringing long-term investment opportunities for Chinese investors, leveraging our track record in investing in A shares and our expertise in investment and risk management to help more investors improve their financial well-being,” Chi Zhang, BlackRock Fund Management’s general manager, said in a statement.

BlackRock is the first foreign company to be allowed to solely market its own mutual funds in China following a change in rules by Chinese regulators and is expected to be joined by other foreign competitors soon.

Fidelity International confirmed last month that it had received approval from Chinese regulators to establish a wholly foreign-owned mutual fund company in China and asset managers Neuberger Berman and VanEck are among other competitors seeking licences.