BlackRock gets approval to run its own mutual fund in China

  • BlackRock (NYSE:BLK), the world's largest asset manager, gets approval from Chinese regulators to operate an onshore mutual fund business in China.
  • That will make BlackRock the first global asset manager to run a wholly owned onshore mutual fund business in the world's second-largest economy as the country opens up its financial sector to foreign firms. China removed foreign ownership limits in its mutual fund and securities sectors as of April 1, 2020 under a Chinese-U.S. trade deal.
  • "Rapid economic development and wealth accumulation in the world's second largest economy have propelled growth of the domestic asset management industry," said Susan Chan, head of Asia for BlackRock . "We are eager to play our part in helping to make investing easier and more affordable so more Chinese citizens can experience the benefits of investing."
  • The China Securities Regulatory Commission granted BlackRock Fund Management Co. Ltd. approval to begin operating as a fund management company, BlackRock said in a statement.
  • Besides local players, BlackRock will eventually face a crop of incoming global competitors. Fidelity International, Neuberger Berman, and Schroders Plc have also applied to operate wholly-owned mutual fund businesses in China, Reuters reports.

    Over the current book year the total revenu from the company based in New York City will be 18.8 billion USD (consensus estimates). This is hugely more than 2020's revenue of 16.21 billion USD.

    Historical revenues and results BlackRock plus estimates 2020


    The analysts expect for 2021 a net profit of 5.72 billion USD. For this year the majority of the analysts, consulted by press agency Thomson Reuters, expects a profit per share of 37.24 USD. The price/earnings-ratio therefore equals 23.66.

    For this year the analysts expect a dividend of 16.19 USD per share. BlackRock 's dividend yield thus equals 1.84 percent. The average dividend yield of the investment companies equals an attractive 3.39 percent.

    Latest estimates around 4070 USD

    The most recent recommendations for the investment company are from KBC Securities, ABN AMRO and Barclays .

    BlackRock 's market capitalization is based on the number of outstanding shares around 136.01 billion USD. The BlackRock stock was the past 12 months quite volatile. Since last June the stock is even 64 percent higher. This year the stock price moved between 529 and 890 dollar.

    Historical stock prices BlackRock

    stock price blackrock

    At 16.51 the stock trades 0.93 percent lower at 881.01 USD. Nieuwsdienst: +31 084-0032-842

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