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Another foreign public fund company has significantly increased its capital to further expand its presence in the Chinese market.

On July 26, a reporter from The Paper discovered that the registered capital of BlackRock Fund Management Co., Ltd. (referred to as "BlackRock Fund") has increased from 1 billion yuan to 1.25 billion yuan.

Public information shows that BlackRock Fund, established in September 2020, is the first public fund company that is 100% foreign-controlled and is 100% controlled by BlackRock Financial Management, Inc.

In the nearly four years since its establishment, BlackRock Fund has increased its registered capital four times. According to the National Enterprise Credit Information Publicity System, in May 2022, the registered capital increased from 300 million yuan to 500 million yuan, an increase of 66.67%; in November 2022, it increased to 700 million yuan, an increase of 40%; in July 2023, it increased to 1 billion yuan, an increase of 42.86%; in July 2024, it increased to 1.25 billion yuan, an increase of 25%.

In September 2021, BlackRock Fund issued its first public offering product. Wind data shows that as of the end of June 2024, BlackRock Fund's public offering management scale was 4.037 billion yuan, with a total of 8 funds under management, of which the scale of mixed funds was 3.602 billion yuan and the scale of bond funds was 435 million yuan.

In addition to BlackRock Fund, this year, foreign public fund companies such as Robeco, Fidelity, and AllianceBernstein have also announced the increase of registered capital.

For example, in February this year, Fidelity Investments increased its registered capital from US$130 million to US$160 million, an increase of more than 23%. This was also the first capital increase of Fidelity Investments this year. In March, Robeco increased its registered capital from RMB 300 million to RMB 420 million, an increase of 40%. In May, AllianceBernstein Investments issued an announcement that, upon the decision of its shareholder AllianceBernstein Hong Kong, its registered capital would be increased from RMB 200 million to RMB 300 million.

In addition to foreign institutions that have already expanded their business in China, a number of foreign institutions including Mizuho Securities and Allianz Fund Management have also entered the Chinese market this year.

On June 24, the latest announcement released by Japan's Mizuho Financial Group Co., Ltd. showed that its subsidiary Mizuho Securities Co., Ltd. (hereinafter referred to as "Mizuho Securities") had applied to the China Securities Regulatory Commission to establish a securities company in China. The China Securities Regulatory Commission had officially accepted the application at that time.

The above announcement stated that China's capital market has the world's third largest fee pool after the Americas and Europe, and considering population trends and economic growth rates, the Chinese market is expected to expand further.

On June 19, the first German wholly foreign-owned public fund Allianz Fund in China was unveiled in Shanghai. Prior to that, on April 18, Allianz Fund was officially approved to open for business with a registered capital of RMB 300 million. The company is not only the first German wholly foreign-owned public fund in China, but also the ninth wholly foreign-owned public fund in China.

As of now, according to statistics from the Paper, there are 10 domestically-controlled securities companies, namely, wholly foreign-owned Goldman Sachs Gaohua Securities, JPMorgan Securities (China), Standard Chartered Securities, BNP Paribas Securities, as well as UBS Securities, Morgan Stanley Securities (China), DBS Securities, Daiwa Securities (China), HSBC Qianhai Securities, and Nomura Orient International Securities; in terms of public funds, wholly foreign-owned public funds include BlackRock, Fidelity, Robeco, Schroders, Manulife, Morgan Asset Management, Morgan Stanley, AllianceBernstein and Allianz.

The Third Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing from July 15 to 18, 2024. The plenary session proposed that openness is a distinctive mark of Chinese-style modernization. We must adhere to the basic national policy of opening up to the outside world, adhere to promoting reform through opening up, rely on my country's super-large market advantages, enhance our openness capabilities in expanding international cooperation, and build a new open economy system with a higher level. We must steadily expand institutional opening up, deepen foreign trade system reform, deepen foreign investment and outbound investment management system reform, optimize regional opening layout, and improve the mechanism for promoting high-quality joint construction of the "Belt and Road".