The QFII allocation sits alongside the firm’s existing 4.1bn yuan ($644m) quota from the Renminbi Qualified Foreign Institutional Investor (RQFII) program.
“BlackRock welcomes and applauds the Chinese government's policy of opening the Chinese capital markets and broadening global investors' participation in domestic stock markets,” said Marc Desmidt, head of strategic product management for Asia-Pacific.
In August, the SAFE approved $2.35bn worth of QFII quota to bring the total QFII quotas to $76.7bn by the end of August, with the RQFII quotas standing at 404.9bn yuan.
Four QFIIs and six RQFIIs were approved by the People's Bank of China to invest in the country's inter-bank bond market, according to a statement released September 7 by the PBOC. BlackRock is not among the seven that are granted access to the bond market.