BlackRock CCB Wealth Management approved for pension wealth management in China

BEIJING -- BlackRock CCB Wealth Management has gained the license from China's top banking regulator to pilot wealth management products for pensions in the cities of Guangzhou and Chengdu.

The joint venture is owned by BlackRock Financial Management Inc, CCB Wealth Management Co Ltd (a subsidiary of China Construction Bank), and Fullerton Management Pte Ltd, according to a statement by the China Banking and Insurance Regulatory Commission.

The preliminary cap for funds raised by the company is set at 10 billion yuan (about 1.57 billion U.S. dollars) in a one-year trial period, the commission said, adding it will allow adjustments on the cap for future operation after evaluation in the process of implementation.

The regulator has previously designated four banks to pilot pension wealth management, namely, the Industrial and Commercial Bank of China, China Construction Bank, China Merchants Bank, and China Everbright Bank.

The regulator said it will keep a close eye on the progress and steadily expand the scale of piloting to provide better financial products and services for pensioners.