A unit of Bank of New York Mellon Corp, one of the largest wealth managers in the United States, has won regulatory clearance for the sale of its stake in a joint venture with China's Western Securities Co Ltd , as a shake-out continues among partnerships in the country's financial industry.
Joint ventures between Chinese financial services firms and foreign counterparts have run into trouble recently, with defaults mounting among local partners amid a slowing economy.
BNY Mellon Western Fund Management, the joint venture between BNY Mellon Asset Management International and Western Securities, received approval from China's securities regulator for its U.S. shareholder to sell its 49 percent stake in the business, the Chinese partner said on Friday.
In a statement posted on the Shenzhen stock exchange, Western Securities said the stake will be sold to Shanghai Leadbank Asset Management Co Ltd, a wealth management firm. After the sale, the fund management company will become an entirely domestic enterprise, the statement said.
Shanghai Leadbank plans to pay 147 million yuan ($24 million) for the shares, according to a statement sent to Reuters on Friday.
The plan to sell the stake was first reported in May this year.
BNY Mellon Western Fund Management could not be immediately reached for comment. The business was set up in 2010 as a Sino-U.S. joint venture to provide public and private fund management services.
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