BNY Mellon Asset Management has 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 yuan-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 David Jiang, CEO of BNY Mellon Asset Management Asia. “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.