BlackRock's $16 Billion Stake in Chinese Stocks at Center of Hutchison’s Panama Ports Dispute

The world's biggest asset manager has allocated resources to at least seven funds focused on Chinese equities; among these, five are passively managed ETFs while the remaining two are actively managed.

BlackRock the asset manager at the center of an agreement to purchase $23 billion worth of port assets from Li Ka-shing's empire CK Hutchison Holdings , has about US$15.5 billion invested in Hong Kong and mainland-listed stocks through its China-focused funds, with its portfolios concentrated on technology and financial companies.

According to its website, the world's largest money manager has at least seven funds dedicated to Chinese stocks; five are passive exchange-traded funds (ETFs) and two are actively managed. The funds' top holdings as of the end of February included Alibaba Group Holding, Tencent Holdings , Contemporary Amperex Technology (CATL) and China Merchants Bank, as per the fact sheets. Alibaba holds ownership of the Post.

The biggest one is the $7.6 billion iShares China Large-Cap ETF, tracking the FTSE China 50 Index. Coming in second place is the iShares MSCI China ETF, with $6.3 billion in assets under management, as it follows the MSCI China Index.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge , our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

The BlackRock China Fund stands out as the bigger player among the two actively managed funds, overseeing $1.3 billion in assets under management (AUM). In contrast, the BlackRock China A Opportunities Fund, aimed at yuan-priced shares listed in mainland China, manages only $15.7 million in AUM.

BlackRock also oversees various funds with either regional or worldwide focus areas which might include investments in Chinese stocks as well.

Earlier in March, CK Hutchison said it would sell most of its global ports business, including assets it holds along the strategically important Panama Canal, to a group led by BlackRock for US$23 billion. The deal triggered a backlash and on Friday, Beijing said it would launch an antitrust probe into the sale US President Donald Trump, who had advocated for the canal to be released from what he termed as Chinese control, welcomed the agreement amidst growing trade-related tensions between Beijing and Washington.

The asset manager based in New York did not respond to an email from the Post requesting commentary.

At the end of 2023, BlackRock had AUM of US$10 trillion with US$5.3 trillion invested in stocks worldwide, according to its latest annual report.

The firm's iShares China Large-Cap ETF is up 18 per cent this year and its iShares MSCI China ETF has risen 16 per cent. Both have benefited from a stock market rally triggered by Chinese artificial intelligence (AI) start-up DeepSeek The launch of two potent yet budget-friendly extensive language models.

The BlackRock China Fund, overseen by Lucy Liu and Ada Zhang, has seen an increase of 14 percent this year. The largest portion of the fund’s investments is in Tencent, which makes up 9.2 percent of its holdings, with Alibaba following closely at 8.5 percent and Xiaomi contributing 6.5 percent.

This year, the China A Opportunities Fund from the company has lagged behind with a growth of only 3.2%, although it did outperform the 1.2% decline of the CSI 300 Index, which tracks mainland Chinese equities. The fund’s leading positions include shares in EV battery manufacturer CATL, along with stakes in China Merchants Bank and Ping An Insurance.

By March 17, BlackRock funds owned a total of 984.8 million Alibaba shares, which equates to a 5.2 percent ownership stake, as reported by data from Hong Kong’s stock market.

The company also possessed 47.4 million Hong Kong-listed shares of ZTE, a telecommunications equipment manufacturer, which equates to a holding of 6.27 percent. Additionally, BlackRock recently maintained a 5.09 percent stake in CK Hutchison.

Hong Kong Financial Secretary Paul Chan Mo-po Following his discussions with international financial experts, investors indicated they planned to boost their investment in Chinese equities.

Global investment firms such as Goldman Sachs and Morgan Stanley have increased their projections for key Chinese stock indexes this year, pointing to attractive valuations and the beneficial effect on profits due to DeepSeek's advancements.

BlackRock has stated that it remains wary regarding the prospects for Chinese equities.

The BlackRock Investment Institute stated in their most recent weekly commentary on March 24th that they have a slightly bullish stance. They believe the enthusiasm around artificial intelligence and technology sectors might continue boosting returns, which could lessen the chances of expected governmental support measures. They are prepared to adjust their strategy accordingly. However, they remain wary due to ongoing issues with China’s economic expansion and potential tariff-related hazards.

More Articles from SCMP

Hong Kong’s Hospital Authority will implement six measures aimed at minimizing human errors.

China courts neighbors, global top-notch X-ray facility: SCMP news roundup

Bright side of life reflected in charming resilience of the kapok tree

US agency reports to lay out justification for Trump’s reciprocal tariffs

The article initially appeared on the South China Morning Post (www.scmp.com), which is the premier source for news coverage of China and Asia.

Copyright © 2025. South China Morning Post Publishers Ltd. All rights reserved.