US asset management firm BlackRock has received qualified domestic institutional investor (QDII) status in China, marking it as the first fully foreign-owned public fund manager to attain this qualification. The designation enables BlackRock to raise capital within China and invest those funds in overseas securities through asset portfolios.
QDII status permits financial firms to access domestic capital for cross-border investment activities. Previously, foreign fund managers such as JPMorgan, Manulife, and Morgan Stanley secured QDII qualifications during their joint-venture operations and retained them after transitioning into wholly foreign-owned entities. For example, JPMorgan’s fund management business completed its full foreign ownership conversion in April 2023. Additionally, New York-based Neuberger Berman has recently applied for QDII status, submitting its application in July.
Following the approval, BlackRock is expected to finalize preparatory work within six months and must pass an on-site regulatory inspection by the China Securities Regulatory Commission before commencing overseas securities investment management. Analysts from Guosen Securities have indicated that the company’s rollout of cross-border investment products is likely to accelerate upon the completion of these steps.
China’s QDII market expanded significantly, with assets exceeding 1 trillion yuan (approximately HK$1.17 billion) as of January, according to data from the Asset Management Association of China. The growth in cross-border investment suggests increasing demand among Chinese investors for global asset diversification.
This development aligns with Beijing’s broader push to liberalize and open its financial sector. On Monday, the People’s Bank of China (PBOC) convened a meeting with representatives from foreign-funded financial institutions, including Bank of America, JPMorgan, Goldman Sachs, Morgan Stanley, HSBC, and Standard Chartered. The discussions focused on enhancing the business environment and promoting high-level financial sector openness.
Pan Gongsheng, governor of the PBOC, emphasized the central bank’s commitment to advancing financial market openness, refining policy support, expanding two-way market access, optimizing cross-border payment services, and facilitating the international use of the renminbi currency.
According to the PBOC, foreign financial institutions acknowledged progress made by the bank’s measures this year on financial opening, business climate improvements, and yuan internationalization. They expressed hopes for further policy refinements and enhanced market communication.
In parallel, China and the United States held constructive trade talks in New York on Sunday, addressing bilateral trade and investment ahead of Chinese President Xi Jinping’s upcoming visit to Washington.