The world’s largest asset manager said Wednesday that the fund, which has raised 6.688 billion yuan, was officially created this week and has attracted more than 111,000 investors. Late last month it began offering investment products to individual Chinese investors.
“We are very proud to achieve this milestone for our fund management business in China and appreciate the overwhelming support of investors,” Rachel Lord, president of BlackRock and head of Asia Pacific, said in a statement.
BlackRock’s announcement comes days after the company was blown up by billionaire philanthropist George Soros for his efforts in China, which he called a mistake. The launch of the new BlackRock product came just weeks after recommending that investors accumulate Chinese assets.
“Pouring billions of dollars into China now is a tragic mistake,” Soros, who has long criticized Xi, wrote in a publication published Monday in the Wall Street Journal. “They are likely to lose money to BlackRock customers and, most importantly, harm the national security interests of the [United States] and other democracies. “
Soros highlighted Xi’s recent crackdown on private business, which he considers evidence that “the regime considers all Chinese companies as instruments of a party’s state.” He also referred to “a huge crisis that is taking place in the Chinese real estate market” and Xi’s efforts to redistribute wealth. These trends, he said, “do not bode well for foreign investors.”
Soros also believes the BlackRock initiative is a threat to democracies because “the money invested in China will help propel President Xi’s regime, which is repressive at home and aggressive abroad.”
BlackRock (BLK) declined to comment about the piece Soros. But in the past, CEO Larry Fink has made it clear that he sees the Chinese market as a great opportunity that cannot be missed.
And on Wednesday, the company stated its intention to remain in China.
“We are very pleased with the official establishment of our first mutual fund in China. The support and trust of our investors and distribution partners has been extremely encouraging.” Chi Zhang, CEO of BlackRock Fund Management, said in a statement.
While Soros has highlighted some real concerns among investors about what Beijing’s crackdown on sectors ranging from education to long-term technology means, global heavyweight investment companies are adhere to China for now.
In addition to BlackRock, Fidelity, Pictet and Goldman Sachs (GS) they advise customers to continue investing in the Chinese market, albeit with caution.
– Julia Horowitz contributed to this report.
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