News Releases

BMO Capital Markets today announced the addition of investment banking services to the range of financial products and services offered by BMO Financial Group in China.  The addition of the BMO Capital Markets Representative Office in Beijing increases BMO's capacity in the Chinese cities in which it operates, which include Guangzhou, Hong Kong and Shanghai.      

“We consider this the next vital step to achieving our objective of becoming a most trusted adviser to Chinese business leaders,” said Tony Comper, President and Chief Executive Officer, BMO Financial Group.  “Being successful in China requires ‘guanxi', and the building of those relationships takes time and commitment.  We appreciate the trust that the Bank of China placed in us earlier this year, and we will work hard to earn the trust of other leading Chinese businesses.”

The BMO Capital Markets Representative Office in Beijing will help offer a broad range of investment and corporate banking services to Chinese and North American institutional, corporate and government clients.  The new office, liaising with and working through the parent company's professional teams in North America, will help leading Chinese companies looking to acquire assets in North America by providing equity capital markets services, as well as mergers and acquisitions advisory services.  The new BMO Capital Markets office will also help Chinese financial institutions securitize assets to improve their capital adequacy and assist Chinese securities firms that offer securitization products to their corporate and government clients.

“We are exceptionally well-positioned to take advantage of China's enormous growth,” said Yvan Bourdeau, Chief Executive Officer, BMO Capital Markets and Head, Investment Banking Group.  “We have our own people on the ground, such as Tony Choy, Managing Director, BMO Capital Markets, now appointed as the Chief Representative for the Beijing office, working closely with local advisers who understand local legal and regulatory structures, as well as the rights and obligations that derive from partnerships.” 

Describing the role of the BMO Capital Markets Representative Office, Mr. Choy said: “Our mandate is to coordinate with our colleagues in North America and help them identify high value investment banking and capital markets opportunities with select Chinese corporations and help them secure financing from outside China, including from Canadian institutional investors.  Our BMO Capital Markets product group will offer a new suite of services to support mergers and acquisitions, equity and debt financing and securitization.

“Our initial focus will be in the mining, energy, forest products and financial services sectors, and will later broaden to include other industries.  As China's capital markets mature, we will grow with them to better serve our Chinese clients in China, our Chinese clients in North America as well as our North American clients interested in China,” said Mr. Choy. 

“We are recognized as a firm that can deliver globally and can help Chinese institutions, as witnessed by the role we played in the Bank of China IPO, China's largest IPO to date,” said Mr. Bourdeau.  He said that BMO's long-standing presence in China certainly helped it secure a role as one of six co-lead managers, the only Canadian bank selected for that role, in the US$11.2 billion financing deal. 

“Adding BMO Capital Markets' services in Beijing further entrenches us in preparation for January 2007, when China fully opens its financial system to foreign competition in order to fulfill its WTO accession commitments,” said Mr. Comper.  “We're ready.”

BMO in China Background

• BMO undertook its first foreign exchange transaction in support of trade with China in 1818.
• BMO became one of the first western banks to establish correspondent banking ties with the Bank of China in 1958. 
• In 1996, BMO became the first Canadian bank to open a branch in Beijing.
• In 2001, BMO commenced negotiations to obtain an equity interest in Fullgoal Fund Management Co., a Chinese mutual fund company, obtaining approval in 2003 to become a 16.7 per cent owner. In 2004 the Bank's equity was increased to 28 per cent. 
• In October 2004, BMO became the first Canadian bank to be authorized by the China Banking Regulatory Commission to sell derivative instruments in China.
• In March 2005, BMO was the only Canadian bank selected to work alongside the Bank of China, the CITIC Industrial Bank, the Industrial & Commercial Bank of China and six other international banks as a market maker for foreign exchange trading in China. 
• In July 2005, BMO became the first Canadian bank to be approved to provide full Renminbi local currency service such as deposits and loans to both foreign and local companies in China, providing greater access to financial services in the country through its branch in Guangzhou.
• BMO is a pioneer in the Chinese foreign exchange market that has consistently ranked among the top 10 banks in China (domestic and foreign) for the past 10 years.  
• BMO was the first and only foreign bank to invest in China's very first and second asset-backed securities (ABS), originated in China by China Development Bank.
• In May 2006, BMO was selected as one of six global firms to lead the US$11.2 billion initial public offering for the Bank of China.
• In July 2006, BMO became the first Canadian bank to be granted approval to provide full Renminbi local currency service from China's capital city of Beijing.

About BMO Capital Markets

BMO Capital Markets is a leading full-service investment firm offering corporate, institutional and government clients access to a broad range of products and services including investment and corporate banking, treasury services, market risk management, institutional investing and research.  With more than 2,000 employees, BMO Capital Markets operates in 14 North American offices and 26 locations worldwide.  BMO Capital Markets is a member of BMO Financial Group (TSX, NYSE: BMO).

For more information, please visit www.bmocm.com.

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BMO Capital Markets' new Chief Representative for the Beijing office, Tony Choy, will help leading Chinese companies looking to acquire assets in North America by providing equity capital markets services, as well as mergers and acquisitions advisory services.  This new function in Beijing increases BMO's capacity in the Chinese cities in which it operates, which also include Guangzhou, Hong Kong and Shanghai.