Mellon Financial failed in its bid to acquire a 49% stake in Soochow Fund Management by buying the brokerage firm, Soochow Securities, which held that stake, Financial Times reports.

Although both companies declined to comment, analysts surmised that the rising stock market in China boosted the value of Soochow Securities to a level that Mellon did not want to pay. "The surge in the market has prompted the broker to readjust the pricing point for its stake to a level that the foreign party deemed unacceptable," one analyst told Financial Times.

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