Scotiabank Buys One-Third of Chinese Fund Company

Scotiabank has agreed to pay $15 million to acquire a 33% interest in a new mutual fund company that is being formed under the auspices of Bank of Beijing.

The venture, to be called Bank of Beijing Scotiabank Asset Management, will serve both retail and institutional investors.

The Bank of Beijing was formed in 1996 as the result of the consolidation of 90 credit co-operatives. Today, it is the 14^th largest bank in China. Scotiabank issued a statement indicating its interest in China is its fast-growing economy.

“Through this joint venture with the Bank of Beijing, Scotiabank will be reching out to more than 8.2 million Bank of Beijing customers with co-branded mutual fund product, growing our brand recognition and sharing the Scotiabank experience,” said Michele Kwok, senior vice president with Scotiabank.