United Kingdom

Blackrock shelves Chinese bond ETF – FT

business 1


Blackrock Inc has postponed the launch of an exchange traded fund (ETF) that invests in Chinese bonds amid mounting tensions between Washington and Beijing, the UKTN reported on Saturday.

The world’s largest money manager has suspended the ETF “indefinitely,” the paper said, citing people familiar with the decision.

According to one of the people, the move was made in part because of concerns about a backlash in Washington against financing the Chinese government with US capital, the report said.

Blackrock did not immediately respond to a request from Reuters for comment.

Reuters had previously reported in April that BlackRock planned to launch its first product in China’s $220 billion onshore ETF market later this year and had begun hiring staff accordingly.

The first Blackrock ETF product was scheduled for the fourth quarter, Reuters reported, which would contribute to 6.8 billion yuan ($1.07 billion) in assets the company manages through two mutual funds with investments in Chinese and Hong Kong stocks. .

Investment firm Tiger Global also stopped investing in Chinese stocks as it reassessed its exposure to the country after President Xi Jinping tightened his grip on power, the Wall Street Journal reported earlier this month.

($1 = 7,1066 Chinese Yuan Renminbi)