BMO and China’s biggest bank ICBC boost partnership for marketplace access

The Bank of Montreal has sealed a new chit of bargain with China’s largest state-owned bank, Industrial and Commercial Bank of China Ltd. (ICBC), in an bid to enhance a footprint in a world’s second largest economy.

The new agreement will concede BMO and ICBC to concur on all from item government to corporate financing and trade in China and Canada.

The understanding was sealed in November, though sum were released publicly on Monday.

“We demeanour brazen to leveraging a chit of understanding to build on a series of opportunities, including a item government capabilities and other areas,” said Gilles Ouellette, organisation conduct of BMO Asset Management.

The bank pronounced a now deliberating “embedding” BMO exchange traded supports in ICBC funds.

“Ultimately, we will work with them to strech mainland investors, and wish to pattern new products tailored to a needs of their clients,” pronounced a BMO spokesperson. The Canadian bank has nonetheless to discharge a investment government products in China.

• BMO buys 20% of Chinese financial organisation COFCO

China ‘opening up’

The agreement comes during a time when China has been perplexing to foster foreign investment in a fast-growing financial sector.

Authorities have vowed to deliver measures to liberalize market access for unfamiliar banks and turn a personification margin with state-owned banks after decades of determining a activities of unfamiliar banks. 

• BMO 1st Canadian bank to incorporate in China

Currently, BMO is a usually Canadian bank with a wholly-owned auxiliary in Asia’s biggest economy. It has had a partnership with ICBC, that is China’s biggest bank by assets, given 1997.

In 2006, BMO helped conduct a placement of ICBC shares in Canada for a initial open listing.

• Chinese bank to open 6 Canadian branches

Beyond China, BMO pronounced it skeleton to use ICBC’s large placement network for a resources products.

Investors welcomed a news of a agreement with BMO shares adult scarcely 1 per cent on a Toronto Stock Exchange on Monday morning.

Article source: http://www.cbc.ca/news/business/bmo-banking-icbc-banks-1.4497944?cmp=rss