The China Securities Regulatory Commission (CSRC) has authorized BNY Mellon and Western Securities to establish a joint venture fund management company in China.

The new company, BNY Mellon Western Fund Management Company, will be owned by BNY Mellon (49%) and Western Securities (51%).

BNY Mellon Western Fund Management will initially manage domestic Chinese securities in a range of local retail fund products, said BNY Mellon.

BNY Mellon Western Fund Management will also focus on leveraging distribution within the Chinese banking and securities sectors, building awareness of the new company in the region.

Bin Hu, a former senior executive at BNY Mellon Asset Management, has been appointed CEO of the Shanghai-based venture.

Founded in 2001 with registered capital of RMB1bn, Western Securities is based in Xi’an and has 34 securities branches and 20 securities services offices throughout China.

Mr Hu said: “We have very ambitious expansion plans for our new company, which include becoming one of China’s leading QFII advisers through actively pursuing QFII sub-advisory deals with foreign institutional investors and providing access to new products in China.”

Bohe An, CEO of Western Securities, said: “Opportunities to develop international partnerships here are significantly increasing to the benefit of Chinese investors. We are extremely pleased to join forces with BNY Mellon, one of the world’s strongest financial institutions. I believe we will together, over time, be able to offer a broad range of tailored asset management solutions to investors.”