(Yicai Global) Dec. 29 -- BlackRock Inc. has registered its Shanghai unit as a private fund manager, a status that will allow the world's largest asset management firm to offer investment products to eligible institutions and rich individuals in China akin to a domestic provider.

Issued by the Asset Management Association of China, the license enables the New York-based firm's local arm to raise funds and invest in the country, rather than via cross-border investments, the 21st Century Business Herald reported yesterday.

China has sought to open up its capital market further this year, and after separate discussions with the US and UK, agreed to allow wholly foreign-owned enterprises to apply for private fund management licenses with the Asset Management Association. BlackRock joins the China-based units of Fidelity International, UBS and Fullerton Fund Management and in winning approval this year.The AMAC expects new licensees to file their first fund within six months of registration. 

BlackRock, which managed almost USD6 trillion in assets as of Sept. 30, has enlarged its China presence through a range of investment schemes over recent years. Its onshore investment quota under the Qualified Foreign Institutional Investors scheme and RMB Qualified Foreign Institutional Investors scheme had reached USD9.5 billion as of the end of November. The two programs allow overseas investors to put money into a limited range of cross-border securities products.

BlackRock also invests in China through the Shanghai- and Shenzhen-Hong Hong Kong Stock Connect links, and issues two products under the Qualified Domestic Limited Partner program for China's high-net-worth investors.