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Blackrock Shelves China Bond ETF – FT

A source said the group made the move partly because of concerns about a backlash in Washington against bankrolling the Chinese government with US capital, the report said.


A source said the world's largest money manager had shelved the ETF because of concern about a backlash in Washington against bankrolling the Chinese government with US capital. Photo: Reuters.

 

Blackrock has put off the launch of an exchange traded fund (ETF) that invests in Chinese bonds, amid growing tension between Washington and Beijing, the Financial Times reported on Saturday.

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

One of the sources said the move was made in part because of concerns about a backlash in Washington against bankrolling the Chinese government with US capital, the report said.

Blackrock declined to comment. In April it was reported that BlackRock was planning to launch its first product in China’s $220 billion onshore ETF market later this year and had started hiring staff for that.

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

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

 

  • Reuters with additional editing by Jim Pollard

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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