SHANGHAI—BlackRock’s China mutual fund subsidiary set up its first fund in the country after raising 6.68 billion yuan ($1.03 billion) during a shortened subscription period, signalling warm reception by investors. Wednesday’s disclosure came a day after billionaire investor George Soros said it was a mistake for BlackRock to invest in China now, and likely to lose money for the U.S. fund giant’s clients. BlackRock, the first foreign asset manager to operate a wholly-owned business in China’s $3.6 trillion mutual fund industry, said its newly-launched China equity fund had raised 6.68 billion yuan from more than 111,000 investors. The BlackRock China New Horizon Mixed Securities Investment Fund, launched on Aug. 30, stopped taking new subscriptions on Sept. 3, a week earlier than planned. “We are very proud of achieving this milestone for our China fund management business, and are grateful for investors’ overwhelming support,” Rachel Lord, BlackRock’s chair and head of …