BNY Mellon Investment Management has secured the go-ahead from the Shanghai Administration to set up Investment Management Wholly Foreign-Owned Enterprise (IM WFOE) in China.

The new unit, located in the Shanghai Free Trade Zone, would be wholly owned by BNY Mellon Investment Management Hong Kong.

It will facilitate manufacture and distribution of onshore private funds to Chinese high net worth as well as institutional investors, the firm said.

The firm’s Asia-Pacific co-heads Lindsay Wright and Doni Shamsuddin, risk and compliance head for Asia-Pacific Emily Chan, and investment management governance head Greg Brisk will serve as the directors of the new unit.

“Establishing an IM WFOE will help improve connectivity with existing clients in China and is a first step in looking to establish onshore manufacturing for our investment boutiques and distribute domestic funds locally,” Wright noted.