BNY Mellon Gets License in China - Analyst Blog

BNY Mellon, a division of Bank of New York Mellon Corp. (BK), said on Monday that it has obtained a license from the China Securities Regulatory Commission (CSRC) to invest in yuan-denominated Chinese securities as a Qualified Foreign Institutional Investor. 

This approval follows BNY Mellon’s application to CSRC to establish a joint venture fund management company in China with Western Securities. BNY Mellon has a long-term strategy for China as the country’s economic environment is progressing very fast. 

Following the launch of the Qualified Foreign Institutional Investor (QFII) program by the Chinese authority in 2003, many large foreign banks have been focusing on the emerging market to invest in Chinese stocks and bonds. The CSRC had approved a $16.67 billion combined quota for 86 Foreign Institutional Investors by the end of 2009. Swiss bank UBS AG’s (UBS) $800 million quota has fallen short of the market demand. Soon UBS will apply for more. 

The joint venture BNY Mellon Western Fund Management Co. will initially manage domestic Chinese securities among a range of local retail fund products. 

The BNY Mellon Corporation was incorporated on July 1, 2007, following the merger of The Bank of New York Company, Inc. and Mellon Financial Corporation. The company provides various products and services to individuals and institutions in more than 100 markets worldwide. 

The BNY Mellon Corporation’s businesses benefit from the global growth in financial assets, the globalization of the investment process and the growth and concentration of wealth segments.
 
Though BNY Mellon Corporation is well positioned to benefit from the growth of global financial assets, supported by the increasing savings levels, the modernization of public-pension schemes and growth in cross-border investing; volatility levels in the global capital markets have a greater influence on revenue growth for selected businesses of the company. 

On Monday, the shares of BNY Mellon Corporation were up by about 1.7%, closing at $29.58 on the New York Stock Exchange.
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