Canada’sBMO has completed its acquisition of a 19.99 per cent interest in COFCO Trust Co, a Beijing-based trust provider to institutions and wealthy individuals in China.
COFCO Trust is a subsidiary of COFCO Group, set up in 2009 under the supervision of the China Banking Regulatory Commission. It went on to garner assets of RMB36 billion ($5.7 billion), as of the end of last year.
BMO’s stake in the company is the maximum allowed by a foreign investor, and allows the Canadian bank an entry point to China for its wealth management products through a third-party route.
“It complements our Asia growth strategy and our recent expansion in the region, which includes the incorporation of Bank of Montreal (China) Co; the acquisition of Hong Kong-based Lloyd George Management; and investment management capabilities provided by Shanghai-based Fullgoal Fund Management Co," said Albert Yu, managing director and head of Asia, BMO Financial Group.
Bank of Montreal (China) has branches in Beijing, Guangzhou and Shanghai, while BMO also has branches in Beijing and Hong Kong and a representative office in Taipei, Taiwan.