Scotiabank and Bank of Beijing to collaborate

by Richard Kilner

Story link: Scotiabank and Bank of Beijing to collaborate

Canadian firm Scotiabank and the Bank of Beijing are to jointly establish a fund management company.

Details have been finalised for the deal, with the Bank of Beijing to have a 33% stake, valued at around US$15m (£8m).

The green light is still required from Chinese regulators for the Bank of Beijing Scotiabank Asset Management Co. Ltd. (as it will be named), which will focus upon the creation and marketing of a broad range of mutual funds aimed at the retail and institutions sector.

Rob Pitfield, Scotiabank’s executive vice president of international banking, described the move as an opportunity to collaborate with Bank of Beijing to enhance its presence in China.

Asset management in China is a lucrative growth area, averaging compound interest of 230% over the last three years and with over $380bn in assets under management.

The Bank of Beijing was established 12 years ago, and now has 131 offices throughout Beijing and a growing branch network across China.

Growth in Asia-Pacific is one of Scotiabank’s goals, and it already has a presence in 11 nations in the region where it offers a comprehensive range of products and services.