Global financial firms are eyeing mainland China, where nearly four million millionaires hold a combined $27 trillion in bankable assets, with each holding more than $125,000. After Beijing approved new licenses, Citi is stepping up its efforts while Franklin Templeton and ChinaAMC seek to localize their offerings and jointly develop ETFs. The opportunity remains constrained by regulation, volatility, capital controls and poor Chinese equity performance, which led BlackRock to close its China Innovation Fund and Vanguard to sell its stake in a mainland China mutual fund operator. To succeed, foreign firms need a strong local presence, distribution partnerships and operating models adapted to the Chinese market. Meanwhile, China is expanding overseas mining acquisitions and intensifying technology tensions with the United States ahead of the U.S. midterm elections.
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