BlackRock has reportedly secured licence in China for a majority-owned wealth management venture with a China Construction Bank (CCB) unit and Singapore state investor Temasek.

The venture will leverage the US asset manager’s investment expertise and CCB’s distribution network, according to a report by Reuters.

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BlackRock owns a 50.1% holding in the venture while 40% stake is held by CCB’s wealth management unit.

BlackRock CCB Wealth Management is expected to bolster the company’s presence in China’s evolving asset management space.

BlackRock chairman and CEO Laurence Fink said that BlackRock will support China in building a sustainable ecosystem for investing.

Fink has been quoted by the news agency as saying in a statement: “The Chinese market represents a significant opportunity to help meet the long-term goals of investors in China and internationally.”

Last month, reports suggested that BlackRock de-registered its Shanghai unit to launch mutual fund business in China.

The company received the nod of the China Securities Regulatory Commission for mutual fund arm in August 2020.

Blackrock reported an attributable profit of $1.2bn in Q1 2021, a 49% jump from the prior year as a result of record net inflows across all regions and investment styles.

The asset manager’s total net inflows through the quarter was $171.64bn, compared to $34.98bn a year ago.

Fixed income had the biggest inflows with $60.8bn, with equities contributing $49.9bn.

Last month, reports emerged about BlackRock and Pegasus Europe eyeing the asset management unit of Credit Suisse that has been hit heavily by exposure to the collapsed Greensill Capital and Archegos Capital Management.