BNY Mellon today confirmed that it is selling its 49 percent stake in China-based BNY Mellon Western Fund Management to Leadbank, a Shanghai-based wealth-management firm.

"China remains an integral part of BNY Mellon's growth strategy and we will continue to expand our investment management and investment services offerings in the country," the bank said in a statement given to China Daily. The value of the deal, which is pending a regulatory approval, remains undisclosed.

The Wall Street Journal reported on May 22 that the bank was selling the unit, according to what it said was a person familiar with the situation.

The newspaper said the sale reflects BNY Mellon's efforts to restructure its Chinese business to suit the changing regulatory and market conditions. The unit has been reporting losses in recent quarters and that also may have prompted the sale, the Journal said.

China's Securities Regulatory Commission has loosened control of the mutual-fund industry. Now securities firms, insurance companies and private funds are can enter the market for the first time.

"In this new business environment, foreign companies are re-strategizing their asset management business in China," the newspaper said. "Many are contemplating setting up wholly owned enterprises in China, instead of joint ventures, as the former would allow more room for implementation of strategies."

Contact the writer at readers@chinadaily.com.cn