Blackrock has postponed the launch of an exchange traded fund (ETF) that invests in Chinese bonds amid mounting tensions between Washington and Beijing, the Financial Times reported.
The largest money manager in the world has “indefinitely” shelved the ETF.
According to FT sources, the move was made in part due to concerns over a backlash in Washington against the Chinese government’s funding with US capital, the newspaper said.
Reuters reported in early April that BlackRock was planning to launch its first product in China’s $ 220 billion onshore ETF market by the end of the year and had started hiring staff accordingly.
The first Blackrock ETF product was expected in the fourth quarter, according to Reuters, which would add to the $ 1.07 billion in assets the company manages through two mutual funds with investments in Chinese and Hong Kong equities.
Investment firm Tiger Global also suspended investments in Chinese equities, re-evaluating its exposure to the country after President Xi Jinping consolidated his hold on power.