AsianFin -- In a significant move, CK Hutchison Holdings Limited, a company controlled by Hong Kong billionaire Li Ka-shing, has recently announced a preliminary agreement to sell its non-China assets of Hutchison Ports to a consortium led by BlackRock, the world's largest asset manager.
The deal, which includes a 90% stake in the Panama Ports Company, operator of the Balboa and Cristobal ports at both ends of the Panama Canal, values the operatorship of all 45 ports at an aggregate enterprise value of $22.8 billion.
BlackRock, headquartered in New York, is a financial behemoth with over $10 trillion in assets under management (AUM) as of the end of 2024. Its portfolio spans a wide range of asset classes, including equities, bonds, real estate, and hedge funds. With nearly 20,000 employees, the firm serves investors in more than 40 countries. Recent data indicates that BlackRock's AUM has surpassed $11 trillion, underscoring its dominant position in global finance.
In recent years, BlackRock has significantly ramped up its investments in Chinese assets, including equities of U.S.-listed Chinese companies, known as “Chinese concept stocks.” BlackRock's investments span several critical sectors, including internet, consumer goods, new energy, and finance. According to Wind data, as of June 30, 2024, BlackRock was the second-largest shareholder of Meituan and the fifth-largest shareholder of Li Auto.
"BlackRock is not just holding shares; it is increasing its stakes," said Bai Wenxi, Vice Chairman of the China Enterprise Capital Union, in an interview with AsianFin. He noted that in 2024, BlackRock increased its holdings of Li Ning by approximately 13.24 million H-shares, raising its stake to over 5%.
"In 2025, the firm further expanded its investments in companies like Alibaba, PetroChina, and BYD. It reflects its confidence in the Chinese market and optimism about the future growth of these companies," Bai added.
Bai emphasized that China's economic growth, vast market size, and continuously upgrading consumption structure provide ample opportunities for various assets. Through diversified asset allocation, BlackRock is well-positioned to capitalize on the dividends of China's economic expansion.
"As the world's largest trading nation and a major investment destination, China's role in the global economy is increasingly pivotal. BlackRock's investment strategy enables it to seize global opportunities and enhance its competitiveness," Bai noted.
BlackRock has also emerged as a major shareholder in several leading Chinese internet and technology companies. By leveraging tools like index funds and ETFs, the firm has achieved an overweight position in Chinese stocks.
Yuan Shuai, Deputy Secretary-General of the Zhongguancun IoT Industry Alliance, explained to AsianFin that this strategy combines passive investment with active research, allowing BlackRock to gain average market returns while deeply participating in the value distribution of China's new economic ecosystem.
BlackRock's business in China dates back to 2004 when it entered the market by acquiring a stake in Bank of China Fund. Since then, the company has actively expanded its footprint in the country. In 2021, it received approval to establish a wholly foreign-owned public fund company, marking a significant milestone in its China business. The BlackRock China Fund is one of its key investments in the Chinese market.
As of February 28, 2025, the top ten holdings of the BlackRock China Fund included prominent names such as Tencent, Alibaba, China Construction Bank, Xiaomi Group, Ping An Insurance, Meituan, NetEase, and Fuyao Glass.
Real estate is another major area of investment for BlackRock in China. Initially focused on commercial properties, the firm has diversified its strategy in recent years to include logistics real estate, long-term rental apartments, industrial properties, and data centers.
In 2016, BlackRock, in partnership with the Government of Singapore Investment Corporation (GIC), acquired Shanghai Yifeng City for about US$ 389 million. Subsequent acquisitions included stakes in Shanghai Changtai Plaza for about US$ 218 million in 2018 and Shanghai Greenland Chuangyi Building for about US$ 141 million in 2020.
With the rapid growth of China's e-commerce sector, logistics real estate has emerged as a key focus for BlackRock. In 2021, the firm increased its investments in this area, partnering with GLP through its real estate fund with an investment of approximately $500 million. In 2022, BlackRock collaborated with ESR to invest in multiple logistics real estate projects, primarily in the Yangtze River Delta and Pearl River Delta regions, with an estimated investment of $300 million.
"BlackRock has benefited from the dividends of China's urbanization process while also enhancing the stability of its asset portfolio with physical assets," commented Bai.
BlackRock has also adopted flexible strategies in the real estate bond and equity markets. In 2021, its BGF Asian High Yield Bond Fund began purchasing bonds from distressed Chinese property developers, including Evergrande. Analysts noted that this move reflected BlackRock's expectations for debt restructuring in China's real estate market. However, due to uncertainties surrounding Evergrande's debt resolution, BlackRock reduced its holdings of some bonds in 2023.
In the stock market, BlackRock employed a "buy low, sell high" strategy, engaging in short-term trading of stocks from distressed property developers like Sunac China. At the same time, it increased its holdings in high-quality developers such as Vanke and CIFI Group.
Despite its successes, BlackRock's expansion in China has not been without challenges. Yuan Shuai pointed out that the shrinking scale of hybrid funds by more than half over four years and frequent management turnover highlight the difficulties foreign institutions face in adapting to China's regulatory environment and market culture. This "culture clash" stems from the fundamental differences between the U.S. and Chinese capital markets and underscores the delicate balance global capital must strike between pursuing returns and respecting host country sovereignty.
Utilizing advanced quantitative analysis systems to capture market dynamics. For instance, its AI-driven risk management platform, "Aladdin," is widely used for asset allocation decisions.
BlackRock maintains close ties with the U.S. government, with several former executives holding positions in the Federal Reserve and the Treasury. During the 2008 financial crisis, BlackRock assisted the Federal Reserve in managing distressed assets. In 2024, BlackRock CEO Larry Fink publicly criticized Trump's protectionist policies, arguing that they fueled inflation and weakened the U.S. economy.
In the context of the Russia-Ukraine conflict, BlackRock engaged in Ukraine's energy and infrastructure sectors through the "Ukraine Development Fund," which has been seen as influencing the geopolitical economic landscape. In the Panama ports transaction, although BlackRock denied any political motives, the U.S. government pressured Panama to curb Chinese influence, highlighting the complexity of the deal.
Meanwhile, as the second-largest shareholder in tech giants like Apple, Google, and Tesla, BlackRock has been criticized for controlling global economic lifelines through capital concentration. Its investments in defense contractors, such as Lockheed Martin, have also raised concerns about profiting from conflict.
BlackRock plans to increase investments in renewable energy and low-carbon technologies. In 2024, it placed orders for 56 green ships built by Chinese shipyards, aiming to reduce emissions in the shipping industry.
From a broader perspective, BlackRock's investment trajectory in China is influenced by geopolitical fluctuations while simultaneously reshaping the value distribution of global supply chains.
BlackRock's asset strategy in China is evolving. As Bai noted, it’s trying to find a balance between diversified holdings and financial security. This requires China to continuously improve its cross-border capital flow management mechanisms while demanding that foreign institutions actively integrate into local development logic, ultimately achieving a symbiotic win-win between capital efficiency and national interests.
