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BNY Mellon sells China unit

The Bank of New York Mellon Corporation is selling its 49% stake in China fund-management joint venture to Shanghai Leadbank Asset Management Co. The sale of the unit – BNY Mellon Western Fund Management Co – reflects BNY Mellon’s efforts to restructure its Chinese business to suit the changing regulatory and market conditions. The value of the deal, which is pending a regulatory nod, remains undisclosed. The JV was established nearly four years ago. China’s Shaanxi Province-based Western Securities Co owns the remaining 51% stake in the JV. The unit has been reporting losses in recent quarters. With the recent changes in the regulations of asset management business in China and opening up of the industry, BNY Mellon has decided to make a fresh start of its management business in the mainland. The latest deal is only a step toward that goal. Further, the JV has been reporting losses in recent quarters. This might have prompted BNY Mellon to offload its stake.

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