(Reuters) -Blackrock Inc has delay the launch of an alternate traded fund (ETF) that invests in Chinese language bonds, amid rising stress between Washington and Beijing, the Monetary Occasions stated on Saturday.
The world’s largest cash supervisor has “indefinitely” shelved the ETF, the newspaper stated, citing individuals aware of the choice.
In keeping with one of many individuals, the transfer was made partly due to issues a couple of backlash in Washington towards bankrolling the Chinese language authorities with U.S. capital, the report stated.
Blackrock declined to remark.
Reuters had reported earlier in April that BlackRock was planning to launch its first product in China’s $220 billion onshore ETF market later this yr and had began hiring workers accordingly.
The primary Blackrock ETF product was scheduled for the fourth quarter, Reuters reported, which might add to six.8 billion yuan ($1.07 billion) value of property the corporate manages by two mutual funds with investments in Chinese language and Hong Kong shares.
Funding agency Tiger International additionally paused investing in Chinese language equities, because it reassessed its publicity to the nation after President Xi Jinping’s cemented his grip on energy, the Wall Avenue Journal reported earlier this month.
($1 = 7.1066 Chinese language yuan renminbi)
(Reporting by Rhea Binoy in Bengaluru; Modifying by Sandra Maler)