BlackRock has received regulatory approval to start asset management business in China through a majority-owned venture with China Construction Bank and Singapore’s sovereign wealth fund Temasek.

The China Banking and Insurance Regulatory Commission granted the licence to BlackRock CCB Wealth Management Limited, which is 50.1% owned by BlackRock, 40% by CCB Wealth Management, a wholly owned unit of the Chinese state lender, and 9.9% by Temasek.

The company will draw on BlackRock’s expertise in investment and risk management, as well as China Construction Bank’s client base and national distribution network to meet Chinese investors’ demand for diversified asset management solutions and support the development of the local wealth and asset management industry, according to a BlackRock statement. Temasek will also contribute its experience and strengths to deliver long-term value for the company’s development.

BlackRock chairman and CEO Laurence Fink says: “We look forward to partnering with China Construction Bank and Temasek to support China in building a sustainable ecosystem for investing. The Chinese market represents a significant opportunity to help meet the long-term goals of investors in China and internationally. We are committed to investing in China to offer domestic assets for domestic investors and look forward to creating a better financial future for more people.”

China has accelerated the opening of its financial sector, easing restrictions to foreign ownership. as part of efforts to attract more foreign capital and internationalize the renminbi. Among the companies that have received regulatory approval to form majority-owned brokerages in the country are HSBC, UBS, Nomura and JPMorgan Chase, while Amundi and JPMorgan have been granted licences to set up majority-owned onshore fund houses.