BlackRock, the asset manager behind the iShares brand of exchange-traded funds, has been awarded its second Renminbi Qualified Foreign Institutional Investor (RQFII) licence by the China Securities Regulatory Commission (CSRC).

BlackRock UK has been awarded an RQFII license enabling the firm to invest in domestic capital markets in China including the A-Share equity and onshore bond markets.

The licence has been awarded to BlackRock’s UK registered business, enabling the firm to invest in domestic capital markets in China including the A-Share equity and onshore bond markets.

BlackRock will now apply for investment quotas under the licence from the State Administration of Foreign Exchange, which should ultimately lead to the launch of a London-listed ETF from iShares providing physical exposure to China’s A-Share equity or onshore bond markets

Thomas Fekete, Head of the iShares Product Team EMEA at BlackRock, said: “China is an important investment destination for our clients globally and we are proud to be among the first asset managers in London to be able to offer direct access to Chinese investments.”

London ETF providers already offering physical China A-Share products include Source, Deutsche Asset & Wealth Management and ETF Securities. As yet, no provider offers dedicated physical exposure to China’s onshore bond market.

Fekete continued: “The award of our second RQFII licence complements our existing China access licences and is recognition by the CSRC of our commitment to growing the BlackRock China business. It means we will be able to add to the investment solutions we offer to our clients.”

BlackRock Asset Management North Asia was granted the firm’s first RQFII licence in March 2014, which received a $320 million (RMB2bn) investment quota in June this year.