BNY Mellon Western Fund Management Company Granted Regulatory Approval in China

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Jul 07, 2010, 06:31 ET

LONDON, NEW YORK and SHANGHAI, July 7 /PRNewswire-FirstCall/ -- The China Securities Regulatory Commission (CSRC) has authorized BNY Mellon and Western Securities to establish a joint venture fund management company in China. The new company, BNY Mellon Western Fund Management Company Limited, will be owned by BNY Mellon (49%) and Western Securities (51%).

BNY Mellon Western Fund Management will initially manage domestic Chinese securities in a range of local retail fund products. Over time, the venture will develop further products using the scale and expertise of the broader BNY Mellon group. BNY Mellon Western Fund Management will also focus on leveraging distribution within the Chinese banking and securities sectors, building awareness of the new company in the region.

Dr. Bin Hu, a former senior executive at BNY Mellon Asset Management, has been appointed chief executive officer of the Shanghai-based venture.

"The Chinese authorities are creating a strong financial market and our commitment to China reflects this, not only in providing a comprehensive suite of solutions from one of the largest global asset managers in the world but also in supporting job creation," said Jon Little, vice chairman of BNY Mellon Asset Management. "Receiving license approval from the CSRC for our new venture with Western Securities is a major step forward in the development of our business in this very important country."

Dr. Hu added: "We have very ambitious expansion plans for our new company, which include becoming one of China's leading QFII advisors through actively pursuing QFII sub-advisory deals with foreign institutional investors and providing access to new products in China."

Founded in 2001 with registered capital of RMB 1bn, Western Securities is based in Xi'an and has 34 Securities Branches and 20 Securities Services offices throughout China.

Mr. Bohe An, CEO of Western Securities, said: "Opportunities to develop international partnerships here are significantly increasing to the benefit of Chinese investors. We are extremely pleased to join forces with BNY Mellon, one of the world's strongest financial institutions. I believe we will together, over time, be able to offer a broad range of tailored asset management solutions to investors."

BNY Mellon Asset Management, BNY Mellon's asset management arm, was granted a Qualified Foreign Institutional Investor (QFII) licence by the China Securities Regulatory Commission (CSRC) in November 2009*. The company is currently seeking approval from the State Administration of Foreign Exchange (SAFE) for an initial investment quota. The approval will allow BNY Mellon Asset Management* to invest in Renminbi-denominated treasuries and Shanghai- and Shenzhen-listed 'A' shares on behalf of overseas investors.

*BNY Mellon Asset Management International Limited has been awarded the QFII licence.

All information source BNY Mellon Asset Management as at 31/03/10. This press release is qualified for issuance in the UK and US and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorised. This press release is issued by BNY Mellon Asset Management (US) and BNY Mellon Asset Management International Limited (ex-US) to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. Registered office of BNY Mellon Asset Management International: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorised and regulated by the Financial Services Authority

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Notes to Editors:

BNY Mellon Asset Management is the umbrella organisation for BNY Mellon's affiliated investment management firms and global distribution companies.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $22.4 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.5 trillion per day. Learn more at www.bnymellon.com.

This press release contains statements relating to future results of The Bank of New York Mellon Corporation that are considered "forward-looking statements." These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, the expectations with respect to the joint venture, including its ownership and future plans, as well as future plans of The Bank of New York Mellon Corporation and expectations with respect to future Chinese markets and general long-term strategies, plans for and implications of the announced transaction. These forward-looking statements, and other forward-looking statements contained in other public disclosures of The Bank of New York Mellon Corporation which make reference to the cautionary factors contained in this press release, are based on assumptions that involve risks and uncertainties and that are subject to change based on various important factors (some of which are beyond The Bank of New York Mellon Corporation's control). Actual results may differ materially from those expressed or implied as a result of these risks and uncertainties, including, but not limited to: changes in political and economic conditions; changes in global market values; success in gaining regulatory approvals when required; and other risks and uncertainties detailed in reports filed by The Bank of New York Mellon Corporation with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. All statements speak only as of July 1, 2010, and The Bank of New York Mellon Corporation undertakes no obligation to update any statement to reflect events or circumstances after July 1, 2010 or to reflect the occurrence of unanticipated events.

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