The Bank of New York Mellon Corporation and Western Securities have signed an agreement to establish a joint venture fund management company in China.
The new company, which will be called BNY Mellon Western Fund Management and owned 51 percent by Western Securities and 49 percent by The Bank of New York Mellon, will be headquartered in Shanghai and is expected to launch in 2008, subject to regulatory approvals.
The joint venture will initially manage domestic Chinese securities in a range of local retail fund products. Over time it is hoped that the venture will develop further products using the scale and expertise of The Bank of New York Mellon group. BNY Mellon Western Fund Management will aim to leverage distribution within the Chinese banking and securities sectors, building awareness of the new company in the region.
"Accelerating the already significant growth of The Bank of New York Mellon's business outside of the US is our key strategic priority. China offers our company and our clients huge growth potential and we are delighted to further our presence there with the formation of this joint venture. This is an exciting opportunity for our company in such an important region," Ronald P. O'Hanley, president and chief executive officer of BNY Mellon Asset Management.
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. It has RMB 14bn in total assets under management.
"As the Chinese financial environment continues to expand and evolve, so the opportunities to develop international partnerships significantly increase.
We are delighted to join forces with The Bank of New York Mellon, which has considerable experience in the international asset management industry, and believe we will together over time be able to offer tailored asset management solutions to Chinese investors," said Dr. Liu Jianwu, chairman of Western Securities.