The funds will benefit from increased diversification, although questions remain about corporate governance in China
New MOU signed between the two banks will help BMO build on its asset-management capabilities
The move is credit positive for Chinese banks and other financial institutions
China has announced plans to increase the limit on foreign control of financial firms to 51%
Hong Kong’s SFC urges investors to be mindful of potential scams as well as the investment risks involved in ICOs
Both firms now each hold a 13.9% stake in the fund company, which had $232 billion in AUM and 40 million retail clients at the end of 2016
The move to add Chinese equities follows from the implementation of the Stock Connect program to facilitate trading between Hong Kong and mainland China
Although some smaller and mid-size banks may experience an impact on their liquidity, larger are likely to be resilient to capital controls
Both firms will acquire an additional 3.9% equity interest each in the Chinese asset manager for $179 million, increasing both companies’ stakes in the firm
The firm is acquiring a stake in China AMC, which had $215 billion in AUM and an annual compound growth rate of 40% in the past five years