BNY Mellon Sells 49% Stake in China JV

By Dow Jones Business News, 
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SHANGHAI--BNY Mellon is selling its stake in its joint-venture fund management company in China, a stock-exchange filing showed, as the wealth management market in the country becomes increasingly competitive amid a changing regulatory landscape.

Shareholders of BNY Mellon Western Fund Management Co., a joint venture between BNY Mellon and mid-sized Chinese broker Western Securities, have approved a share sale agreement that lets BNY Mellon to sell its 49% stake in the joint venture to Chinese asset manager Shanghai Leadbank Asset Management Co., Western Securities said Tuesday in a filing to the Shenzhen Stock Exchange.

The deal is subject to approvals from relevant government agencies such as the China Securities Regulatory Commission, Western Securities said.

It didn't disclose the value of the deal. BNY Mellon owns a 49% in the joint venture which has a registered capital of 300 million yuan ($48.1 million) and has incurred losses for years, according to Western Securities" earnings reports.

Write to Amy Li at amy.li@dowjones.com

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