China Securities Regulatory Commission awards QFII licence to BNY Mellon Asset Management* Marks next step in BNY Mellon's long-term commitment to China
BOSTON and LONDON, Feb. 1 /PRNewswire-FirstCall/ -- BNY Mellon Asset Management has today announced that the application for a Qualified Foreign Institutional Investor (QFII) licence by BNY Mellon Asset Management International Limited has been successfully approved by the China Securities Regulatory Commission (CSRC)*.
BNY Mellon Asset Management* 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.
"Global investors cannot afford to ignore the investment potential of China," said Jon Little, Vice Chairman of BNY Mellon Asset Management. "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; overseas direct investment jumped 190% in the third quarter of 2009 to US$20.5 billion as China took the opportunity to acquire resources while alleviating pressure on its currency."
"China's financial markets have developed very rapidly, spurred by investor demand and a clear regulatory framework. It is important that we can offer our clients access to the attractive investment opportunities here, and today's announcement marks a critical step in the further growth of our business in China," added Ronald P. O'Hanley, president and chief executive officer, BNY Mellon Asset Management.
BNY Mellon is the 11th largest asset manager globally and currently has an application lodged with the CSRC for a licence to establish a joint venture fund management company in China with Western Securities. The proposed new company, BNY Mellon Western Fund Management Company Limited, will initially manage domestic Chinese securities in a range of local retail fund products.
BNY Mellon has strong and historical relationships with banks in China having been active in the region for more than 90 years and opened its first office in mainland China in 1994. BNY Mellon's business was originally primarily focused around its treasury, trade and payments services. This has evolved today to include a wide variety of products and services including asset management, custody, fund administration, depositary receipts and foreign exchange.
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 (NYSE: BK). 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 $22.3 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $12 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day. Additional information is available at www.bnymellon.com.
*BNY Mellon Asset Management International Limited has been awarded the QFII licence. All information source BNY Mellon Asset Management as at 31/12/09. 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. Registered office of BNY Mellon Asset Management International: The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorised and regulated by the Financial Services Authority
A BNY Mellon Company(SM)
SOURCE BNY Mellon