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Apr.1 (NBD) -- The world's leading asset managers BlackRock and Neuberger Berman applied to set up mutual fund businesses in China on Wednesday, becoming the first asset managers to do so after China scraps foreign ownership limit in securities and fund companies.

BlackRock Financial Management and Neuberger Berman Investment Advisers LLC are major applicants and the Chinese regulator is reviewing their materials, according to files released on the website of the Shanghai Stock Exchange on Wednesday.

As of the end of 2019, BlackRock, as the world's largest asset manager, has over 7 trillion U.S. dollars under management, while Neuberger Berman, being in business for 81 years, manages 356 billion U.S. dollars.

"We are happy for the solid progress made in China and it will remain one of the most prosperous markets for BlackRock in the long term," said Geraldine Buckingham, Senior Managing Director of the company. Neuberger Berman expressed similar views when reached by NBD.

Starting from 2020, China quickened the pace to open its financial sector to the outside world. With the foreign ownership limits removed, more exclusively foreign-owned securities and fund companies are likely to emerge, exerting a challenge to domestic players.

BlackRock and Neuberger will not have a big impact on the sector at the initial stage but their long-term strategic development should not be overlooked, noted a person in a mutual fund company when asked about the influence of foreign asset managers' entry on China's mutual fund domain worth 1.4 tln yuan (197.2 bln U.S. dollars).

Foreign institutions have a track record in managing "pension funds". With the sector starting to blossom in China, their advantages will be more apparent, remarked a source at a large mutual fund.

However, there are industry insiders holding different opinions, noting that domestic institutions are likely to lead the sector as they are better positioned in channels and cultural understanding.


Editor: gaohan@nbd.com.cn

Editor: Gao Han