Obtaining the license is part of BNY Mellon’s long-term China strategy. BNY Mellon is currently waiting for regulatory approval for an asset management venture with China-based Western Securities. The firm, named as BNY Mellon Western Fund Management Company, intends to initially manage domestic Chinese securities in a range of local retail fund products and seeks to tap the nation’s $380bn mutual fund industry.
In a statement, David Jiang, CEO of BNY Mellon in Asia, said: “Global investors cannot afford to ignore the investment potential of China. With a vast number of Chinese companies now cash rich, we expect merger and acquisition activity to continue, which may provide further support to share price valuations. China has been particularly active on this front,” reported the news agency.
Reportedly, to allow foreign institutional investors to invest in yuan-denominated bonds and stocks, China had launched the QFII scheme in 2003. According to Shanghai Securities News, by the end of 2009 China had granted approximately $16.67bn to 86 investors.