Source: The Canadian Press

Bank of Montreal (TSX:BMO) chief executive Bill Downe says the company is exploring the possibility of starting a wealth management division in China.

Downe was in China on Thursday for the opening of its new subsidiary Bank of Montreal (China) Co. Ltd., and said the region is a key growth market outside North America.

“The opening of BMO ChinaCo gives us the flexibility we want to expand our product and service offerings for Canadian and Chinese clients — including the possibility of new initiatives in wealth management and retail banking,” he said in a release.

“National treatment will ensure we can grow at a faster pace as China embraces financial liberalization and regulatory reform.”

The new operations in China will provide a base to expand BMO’s presence in the area, even though it will initially work in partnership with some local banks.

Canadian banks have been making inroads into China over the past few years, particularly Scotiabank (TSX:BNS) which boosted its stake in local bank Xi’an City Commercial Bank to 14.8% last December.

Other major Canadian banks, including CIBC (TSX:CM) and Royal Bank (TSX:RY) have operations in China as well.

Manulife Financial (TSX:MFC), Canada’s largest insurance company, has a joint venture operation in the city of Jinhua and licences for five satellite offices in three provinces. It is also licensed in 39 Chinese cities, and has a 49% interest in China-based ABN AMRO TEDA Fund Management Co.