US asset manager BlackRock has gained Qualified Domestic Institutional Investor (QDII) status in China, according to information released by the China Securities Regulatory Commission on Sept 18, making it the first wholly foreign-owned public fund management company to obtain the qualification.

The QDII scheme allows domestic investors to access overseas securities markets through qualified financial institutions. Three other mutual fund management companies — JPMorgan Fund, Manulife Fund and Morgan Stanley Fund — obtained QDII qualification while still operating as joint ventures before converting to wholly foreign-owned public fund firms.

According to the requirements of the China Securities Regulatory Commission, public fund managers applying for QDII qualification must have net assets of at least 200 million yuan ($30 million), have managed securities investment funds for at least two years, and have assets under management of no less than 20 billion yuan or the equivalent of foreign currency as of the end of the most recent quarter. They must also have qualified personnel for overseas investment management and sound corporate governance and internal control systems.

BlackRock said the approval marks a new starting point for the company, and it will continue to expand its presence in China, serve Chinese investors, and strengthen its investment management and client service capabilities, with the aim of developing a long-term, sustainable asset management business in the country.

The company said it will continue to put investors' interests first and steadily develop its QDII business and products in compliance with Chinese laws, regulations, and regulatory requirements, aiming to provide domestic investors with more channels and opportunities to invest in global markets.

Source: Xinhua News Agency