BlackRock gains QDII status in China’s US$149b market as Beijing leans into opening up

The qualification allows firms to raise funds in China and deploy them in overseas asset portfolios

US asset manager BlackRock has obtained Qualified Domestic Institutional Investor (QDII) status in China, making it the first wholly foreign-owned public fund manager to obtain the qualification, with more such developments likely as Beijing signals broader financial opening.

This qualification allows firms to raise funds in China and deploy part or all of the proceeds for overseas securities investment management through asset portfolios. New York-based Neuberger Berman, another foreign-owned public fund manager, submitted a QDII application in July.

The fund-management businesses of JPMorgan, Manulife and Morgan Stanley obtained QDII status during their joint‑venture era and kept the qualification after converting to wholly foreign‑owned public fund firms. For instance, the fund business of JPMorgan became wholly foreign-owned in April 2023.

BlackRock would complete relevant preparatory work within six months of the approval and would be able to launch its overseas securities investment management business only after passing an on-site inspection, the China Securities Regulatory Commission said in a statement last week.