BNY Mellon Western Fund Management’s CEO Bin Hu said that he plans to nearly double its staff by 2011 after being approved to start a fund management business in China under the auspices of the Qualified Foreign Institutional Investors (QFII) program, Bloomberg reported. BNY Mellon (owned by Bank of New York Mellon, BK.NYSE) is the first fund management company approved for QFII in the last two years. The company runs its China operations through a joint venture structure with Xi’an based Western Securities. The JV is seeking a quota from regulators for local-currency investments. Hu, formerly a hedge fund manager at Coefficient Global in San Francisco, said he is cautious about Chinese equities. "The policy is not clear. CPI [consumer price inflation] is not too high but the government might not feel too comfortable with what it’s seen. The next step is to continue to cool down the real estate market," said Hu.
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