We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BlackRock (BLK) to Expand in China With Majority Owned JV
Read MoreHide Full Article
One of the world’s largest asset manager, BlackRock (BLK - Free Report) along with Singapore-based Temasek Holdings (Pte) Ltd and China Construction Bank Corp have agreed to form an asset management joint venture (JV) in China, per persons familiar with the matter. A memorandum of understanding has already been announced internally by these companies.
Nonetheless, the deal is still subject to regulatory approval. Regulatory changes in China now allow foreign financial firms to own majority stake in JVs.
BlackRock and Temasek will hold majority stakes in the new venture due to ownership restriction of asset management units by China banks. China Construction Bank has already set up an asset management partnership with Commercial Bank of China Ltd and hence, can’t take ownership interest in another similar JV.
This move is in sync with BlackRock’s efforts to seek growth opportunities in China. In April, CEO Larry Fink had said that he wants the company to become one of the leading asset managers in China and considers it as one of largest sources for growth.
BlackRock already manages assets of a lot of high-net-worth clients in China. However, as the country further opens up its financial sector for foreign companies, the company wants to take advantage of this and expand in the region.
Apart from BlackRock, various other finance companies are seeking to expand operations in China as the country announced plans to remove foreign ownership limits on financial firms by 2020, with the target of opening up the industry worth $44 trillion to international competition.
In fact, UBS Group AG (UBS - Free Report) , JPMorgan (JPM - Free Report) and Nomura Holdings Inc (NMR - Free Report) have already received regulatory nod for acquiring majority stake in local JVs in China.
Notably, BlackRock is also looking for ways to develop a partnership with China’s Internet giant — Tencent Holdings Ltd. At present, the talks, which have been going on between the two over the past year, are at an initial stage.
Shares of BlackRock have rallied 27.2% year to date, outperforming the industry’s rise of 11.8%.
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
BlackRock (BLK) to Expand in China With Majority Owned JV
One of the world’s largest asset manager, BlackRock (BLK - Free Report) along with Singapore-based Temasek Holdings (Pte) Ltd and China Construction Bank Corp have agreed to form an asset management joint venture (JV) in China, per persons familiar with the matter. A memorandum of understanding has already been announced internally by these companies.
Nonetheless, the deal is still subject to regulatory approval. Regulatory changes in China now allow foreign financial firms to own majority stake in JVs.
BlackRock and Temasek will hold majority stakes in the new venture due to ownership restriction of asset management units by China banks. China Construction Bank has already set up an asset management partnership with Commercial Bank of China Ltd and hence, can’t take ownership interest in another similar JV.
This move is in sync with BlackRock’s efforts to seek growth opportunities in China. In April, CEO Larry Fink had said that he wants the company to become one of the leading asset managers in China and considers it as one of largest sources for growth.
BlackRock already manages assets of a lot of high-net-worth clients in China. However, as the country further opens up its financial sector for foreign companies, the company wants to take advantage of this and expand in the region.
Apart from BlackRock, various other finance companies are seeking to expand operations in China as the country announced plans to remove foreign ownership limits on financial firms by 2020, with the target of opening up the industry worth $44 trillion to international competition.
In fact, UBS Group AG (UBS - Free Report) , JPMorgan (JPM - Free Report) and Nomura Holdings Inc (NMR - Free Report) have already received regulatory nod for acquiring majority stake in local JVs in China.
Notably, BlackRock is also looking for ways to develop a partnership with China’s Internet giant — Tencent Holdings Ltd. At present, the talks, which have been going on between the two over the past year, are at an initial stage.
Shares of BlackRock have rallied 27.2% year to date, outperforming the industry’s rise of 11.8%.
Currently, BlackRock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>