A subsidiary of BlackRock Inc has become the first US-based asset manager to be awarded a Renminbi Qualified Foreign Institutional Investor (RQFII) quota to invest in China's capital markets.

On Thursday, BlackRock said that an 11 billion yuan ($1.60 billion) quota was granted to BlackRock Fund Advisors by the State Administration of Foreign Exchange (SAFE).

"China remains an important investment destination for our clients," said Ryan Stork, the firm's Asia-Pacific chairman.

Including the most recent quota granted by the SAFE, BlackRock has a combined RQFII quota of 35.1 billion yuan. BlackRock (Singapore) has 20 billion yuan, BlackRock Asset Management North Asia has 2 billion yuan and BlackRock Advisors (UK) has 2.1 billion yuan.

In June, China said it would give US-based managers a quota to buy assets in the Chinese mainland, and the total available was set at 250 billion yuan. The move was expected to deepen bilateral financial ties and help internationalize the yuan.

Reuters