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Canada could be the single most interesting place in the world in which to invest, especially for global investors who want to gain greater access to China, arguably the world's fastest growing market, said William Downe, Deputy Chair, BMO Financial Group and Chief Executive Officer, BMO Nesbitt Burns.

In a speech today to the Canadian-Swiss Association in Zurich, Switzerland, Mr. Downe likened the unique investment opportunity he sees in Canada to a Trifecta.

"With the continuing strength of NAFTA trade, the rising value of the Canadian dollar, and the booming trade opportunities with China, Canada offers a unique opportunity for global investors," said Mr. Downe.

"Ever since the Free Trade Agreement of 1988, many European investors have seen Canada as a way to hedge risk within their North American portfolios. North American free trade has created opportunities for Canada's financial services sector. Canadian financial services institutions offer the European investor an excellent way to obtain access to the U.S. market."

Mr. Downe noted Canada's Prime Minister and former finance minister Paul Martin's aggressive debt reduction strategy and fiscal prudence, which has continued under current Finance Minister Ralph Goodale. "The economic fundamentals point to a strong loonie going forward. Because the Canadian and U.S. economies have become so integrated under NAFTA, Canadian equities give the global investor an opportunity to play the U.S. market with a hedge against the greenback," concluded Mr. Downe.

Mr. Downe told the audience of European investors that they can now also use Canada as a China play, on the strength of China's voracious demand for Canadian commodities. "Canada represents a low-risk, high-return opportunity for global investors to share in the booming Chinese economy," said Mr. Downe.

Mr. Downe pointed to a number of facts:

• Between 1999 and 2003, Canada's exports of goods to China grew from $2.7 billion to $4.8 billion; and for the first 11 months of 2004, that figure rose to $6.5 billion.
• China consumes 6.4 million barrels of oil per day; Canada's oil sands now produce a million barrels per day, and some predict it will reach about 5 million in ten years.
• Over 60 per cent of the world's mining companies are based in Canada; in 2003, roughly 45 per cent of some $13 billion in equity capital raised globally was for mineral exploration and development by companies listed on Canadian stock exchanges.

"The global reach, the leading expertise, and the resource wealth of Canadian companies are all very attractive features to Chinese business. In fact, China is using the proceeds from its huge trade surplus not just to buy commodities, but to invest in the companies that produce them," said Mr. Downe. "Some of Canada's biggest resource companies are now possible plays for a Chinese economy flush with investment cash."

Mr. Downe concluded Canada continues to maintain a preferred position with China. Companies, such as BMO, which have demonstrated long-term commitment and have taken the time to cultivate personal relationships with China's leaders, are the most likely to succeed, he said. "And I would submit, these are precisely the kinds of companies that global investors should contemplate if they want to make a backdoor play into the lucrative Chinese market."

BMO has a long history in China dating back to the early 1800s when it completed its first foreign exchange transaction helping the United States finance its growing trade with China. This support for trade grew when BMO became one of the few North American banks to finance trade transactions in China during the 1960s. Today, BMO is the only Canadian bank with branches in Beijing, Guangzhou and Hong Kong, and was only the eighth foreign bank permitted to operate in the capital. In January 2002, BMO opened a representative office in Shanghai to assist clients in trade and investment activities, becoming the only Canadian bank to have a physical presence in the Chinese financial centre. In the fall of last year, BMO announced it had become the first Canadian bank to be granted a licence to sell derivatives instruments in China.

For a complete text of Mr. Downe's speech, please visit www.bmo.com.

About BMO Financial Group
With total assets of CDN$265 billion as at October 31, 2004, and more than 33,000 employees, BMO Financial Group is a highly diversified North American financial services organization. BMO provides a broad range of investment banking and wealth management products through BMO Nesbitt Burns, a leading full-service investment firm. With teams of professional traders at global equity trading desks in Zurich, London, New York, Toronto, Vancouver and Montreal, BMO's Equity Sales and Trading team delivers a complete suite of customized trading solutions on all primary markets in Canada and the United States. Working closely with BMO's top-ranked Equity Research Team, the sales group excels at understanding each client's portfolio and investment style. In the United States, BMO serves institutional and corporate clients through Harris Nesbitt, a leading mid-market investment bank offering clients access to a full range of products and services including institutional investing and research, investment and corporate banking, treasury services and market risk management.

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