BLACKROCK Inc. is considering seeking a mutual fund license in China, people with knowledge of the matter said, as the world’s largest asset manager pursues ways to expand and exert more control over its operations in the nation.

As part of the plan, BlackRock is in talks to sell its 16.5 percent stake in Bank of China Investment Management Co., the people said. The firm has also been in discussions with the China Securities Regulatory Commission (CSRC) about applying for its own license and setting up a majority-controlled joint venture, two of the people said.

China announced a little over a year ago that foreign firms would be allowed to take control of local joint ventures across sectors from securities to life insurance, part of the government’s plans to open up financial markets. In April, the securities regulator said overseas companies could start applying for majority control of mutual fund firms, with no revision to existing rules necessary.

BlackRock chairman and chief executive officer Larry Fink said Thursday in New York that the firm was “eager” to help continue to build China’s asset management industry and hoped to be a strong company in the nation.

He also told an event organized by the National Committee on United States-China Relations that he expects BlackRock will “earn” a license in China, without specifying what type of permit that might be.

China’s mutual fund market has grown sixfold since 2011 to about 13.4 trillion yuan (US$1.9 trillion) in assets under management as of Sept. 30, according to the Asset Management Association of China.

BlackRock has a relatively long history in Asia’s biggest economy, taking a stake in Bank of China Investment Management (BOCIM) in 2006. It was granted a private fund license in 2017 and now has two onshore China funds aimed at qualified institutions and high net worth individuals.

Bank of China Ltd. owns the rest of BOCIM. BlackRock doesn’t expect the Chinese lender would agree to sell it a controlling stake in the unit, one of the people said. (SD-Agencies)