OREANDA-NEWS. February 18, 2015. C.J. Gavsie, Managing Director & Global Head of FX Products & China Capital Markets, BMO Capital Markets, today appeared as an expert witness at the House of Commons Standing Committee on Finance, to discuss the establishment of a Canadian Renminbi (RMB) Hub.

The hub, announced by Prime Minister Stephen Harper during his visit to China this past November, will allow for the RMB to be traded freely with the Canadian dollar.

"This is fantastic news for Canadian companies," said Mr. Gavsie. "The trading hub will ensure that Canadian firms doing business in China can purchase RMB on the open market without converting to another currency first. As we've seen in other jurisdictions, the cost savings will lead to more trade. This, in turn, will create more jobs for Canadians."

In a recent report, BMO Economics noted that China is now Canada's second-largest trading partner with activity growing close to a double-digit rate, having already more than doubled over the past decade. Given anticipated solid growth from China, trade ties should only broaden further.

Mr. Gavsie also applauded officials at all levels of government for their efforts in establishing the hub: "The Prime Minister, and officials at the provincial and municipal levels across the country, are to be commended for both their vision and their efforts."

Mr. Gavsie said he was looking forward to the opportunity for BMO to help customers make best use of the RMB hub. "At BMO, our capabilities in China are unmatched by our peers, and we look forward to using our strong foreign exchange capabilities to support our customers as they expand their business ties with China."

About BMO in China

BMO is the only Canadian and one of only three North American banks with an established subsidiary bank in China. BMO's subsidiary bank, Bank of Montreal (China) Co. Ltd. (BMO ChinaCo), maintains branches in Beijing, Guangzhou and Shanghai, allowing the bank the flexibility to expand its product and service offerings for North American and Chinese clients.

BMO's China presence also includes:

  • BMO branch in Hong Kong;
  • BMO Capital Markets representative office in Beijing;
  • BMO Nesbitt Burns representative office in Beijing;
  • BMO Global Asset Management Asia in Hong Kong;
  • A 28 per cent equity stake in Fullgoal Fund Management Co. Ltd., based in Shanghai; and
  • A 19.99 per cent equity stake in COFCO Trust Co. Ltd., based in Beijing.

About BMO Capital Markets

BMO Capital Markets is a leading, full-service North American financial services provider. With more than 2,300 employees operating in 29 locations, including 16 in North America, BMO Capital Markets offers corporate, institutional and government clients access to a complete range of investment and corporate banking products and services. BMO Capital Markets is a member of BMO Financial Group (NYSE:BMO)(TSX:BMO), one of the largest diversified financial services providers in North America with total assets of CDN \\$589 billion and more than 46,000 employees at October 31, 2014.