by HAN Li
As China continues to open its financial sector, new pathways have emerged for global asset managers to participate in the Chinese capital market. The alignment of domestic rules with international standards has further encouraged large global institutions to expand their presence.
BlackRock, founded in 1988, operates in more than 40 countries. As of the second quarter of 2025, the firm manages US$12.5 trillion (88.9 trillion yuan) across asset classes, from equities and fixed income to alternatives and digital assets.
BlackRock has been in China for about 20 years. In 2021, it became the first wholly foreign-owned public mutual fund manager approved in the country.
Jiemian News interviewed Fan Hua, head of BlackRock China. She reviewed key milestones in BlackRock's expansion in China, shared her observations on China's financial opening-up, and explained why Chinese assets are increasingly attractive to global investors.
Jiemian News: When did BlackRock first enter China? Could you walk us through the journey and how the firm built its presence here?
Fan: Our first entry into the market began in 2006, when we became a shareholder of BOC Fund Management after acquiring Merrill Lynch Investment Managers. That same year, we started offering international investment solutions to domestic institutions through the QDII program, which marked the beginning of our cross-border business.
As our commitment deepened, we set up a wholly owned enterprise in Shanghai in 2014. Three years later, we obtained regulatory approval to conduct private fund management in China, launching both QDLP products and onshore equity strategies. The most defining milestone came in 2020, when we received approval to establish a wholly foreign-owned public mutual fund business. Our first public fund was launched in September 2021, and around the same time, our joint venture with China Construction Bank and Temasek was approved to operate wealth management services.
After nearly two decades of development, BlackRock now operates in China through three key pillars: a wholly owned public mutual fund business, a joint-venture wealth management business, and cross-border investment solutions. In many ways, we’ve not only witnessed China's capital market growth—we've become a participant in its evolution.
Jiemian News: What impact has China's financial opening-up had, and how do foreign institutions contribute to the market?
Fan: The impact has been profound. Since opening up its financial sector, China has been steadily aligning itself with global standards. We've seen listed companies pay more attention to shareholder returns, enhance dividend policies, and improve disclosure quality – changes that directly increase transparency and strengthen investor confidence, especially among international investors.
In asset management, openness has also brought stronger discipline and a clearer client-first mindset. Initiatives such as requiring managers to define benchmarks ensure that what investors are sold is truly what they receive. For international firms like us, long-term investing and value investing are core principles, and these values increasingly resonate with the local regulatory direction.
Foreign participation also brings more diverse investment strategies and opportunities to the market. With programs like QDII, QDLP, cross-border Wealth Management Connect and ETF Connect, Chinese investors today can build truly global portfolios. Meanwhile, the entry of sovereign funds, pension plans, hedge funds, and long-term global investors contributes to a more balanced and stable market structure. The result is a market that is more efficient, more transparent, and more aligned with global practices.
Jiemian News: What does "high-level opening-up" mean to you, and what further progress do you hope to see?
Fan: To me, "high-level" means moving beyond attracting capital purely for the sake of inflow volume. It's about enabling foreign institutions to operate sustainably in China – integrating into the local market, creating long-term value, and contributing to market development.
In practice, this means smoother two-way connectivity between domestic and international markets, more efficient cross-border fund flows, and a regulatory environment that supports global firms operating seamlessly. Cross-border data and information flow are also essential—global asset managers need to ensure compliance across jurisdictions while serving clients efficiently.
Looking ahead, we see new areas where opening-up could be very meaningful: pension finance, green and sustainable investment, and financial technology. Chinese households increasingly demand wealth preservation, retirement solutions, and ESG-aligned investment options. In these areas, global experience and local demand can complement each other.
Jiemian News: BlackRock is known for ETF leadership globally, but in China the company hasn't focused on ETFs. Why? How did you choose your localization path?
Fan: Our ETF franchise is one of the largest in the world, so naturally there were expectations that we would replicate that success in China. But the ETF ecosystems in China and overseas operate under different incentive structures and market dynamics. After evaluating the environment, we believed the timing wasn't right to build a large ETF business locally.
Instead, we saw stronger opportunities in index enhancement strategies, where active insights complement systematic processes. China's market is rich in alpha potential – much more so than many developed markets – so we focused on strategies that can capture that opportunity. At the same time, we accelerated the development of BlackRock's SAE systematic investment approach in China to build capabilities that are aligned with local market characteristics.
Jiemian News: Why does BlackRock remain optimistic about China's capital markets? What makes Chinese assets uniquely attractive globally?
Fan: The structural potential of China's economy is still very strong. Earlier this year, breakthroughs in frontier technologies, especially in AI, led many global investors to reassess the value of Chinese companies. As innovation accelerates, asset pricing increasingly reflects future growth rather than past pessimism.
For domestic investors, A-shares have become more attractive as interest rates remain low and volatility in fixed-income markets increases. Investors today care about expected returns, volatility, and correlation; A-shares offer a compelling balance across all three dimensions. Volatility has moderated, while lower bond yields make equities relatively more valuable in asset allocation.
For global investors, the appeal lies in low correlation. China operates under its own monetary and fiscal cycle, has a distinct investor base, and a unique index composition – factors that create diversification benefits not easily found elsewhere. The market's liquidity and dispersion among individual stocks also create fertile ground for alpha generation, benefiting both quantitative and active managers.
Jiemian News: With rising demand for wealth management in China, how will BlackRock position itself?
Fan: Investor needs in China are evolving. The market is shifting toward more systematic, diversified, and globally oriented investment approaches. Based on our research into these trends, we focus on three directions. We aim to combine BlackRock's global data capabilities with local research to pursue long-term, consistent returns through systematic and quantitative strategies.
As retirement planning and long-term wealth management awareness rise, we are expanding our multi-asset and retirement-related investment solutions to help investors manage volatility while seeking returns.
we also see growing interest in overseas markets, so we are leveraging our cross-border platform to give clients access to global allocation opportunities.
As the market grows and investor needs become more sophisticated, we will continue to broaden our product offerings, with the goal of supporting Chinese investors throughout different stages of their wealth-building journey.
Jiemian News: The The macroeconomic environment remains uncertain. How does BlackRock operate effectively in China?
Fan: We face challenges – building a young business, designing products that fit local preferences, and navigating cross-border operational frameworks. But our approach has been consistent: stay committed, stay localized, and stay efficient.
We are building a team rooted in the local market, ensuring decisions are made quickly and based on deep understanding of customer behavior. We have also streamlined operations to adapt to regulatory changes in real time. While global capabilities give us strength, it's our local integration that enables us to serve investors effectively.
Despite the complexities, our conviction remains unchanged: China is a strategic, long-term market, and we will continue investing—steadily, responsibly, and with confidence.
