Bank of Nova Scotia today announced it has signed a strategic co-operation memorandum with Bank of Dalian Co. Ltd., formerly Dalian City Commercial Bank, outlining the bank’s intention to explore a strategic partnership by way of a minority investment in China’s seventh-largest city commercial bank.

“Like any company, anywhere in the world, Scotiabank is always looking for growth opportunities,” said Rob Pitfield, Scotiabank executive vp, international banking. “We are optimistic about the potential for growth in China and this agreement further demonstrates our commitment to explore this important market.”

Founded in March 1998 and with assets approaching US$8 billion, Bank of Dalian is an amalgamation of urban co-operatives based in the city of Dalian. The bank has 90 branches and 1,650 employees.

The city of Dalian is a hub for transportation, finance, trade and tourism and serves as the gateway to Beijing and Tianjin. More than 100 million people live in the region, which includes three Chinese provinces and inner Mongolia. About 80% of the export cargoes from northeast China are handled through the Dalian port every year.

“Scotiabank has long recognized that unique opportunities for growth can be found beyond Canada’s borders,” said Michele Kwok, senior vp, Asia-Pacific and the Middle East, Scotiabank. “We are optimistic about the opportunities that are presented through strategic investments in countries like China and particularly in the vibrant city of Dalian.”

Scotiabank operates in 11 countries in the Asia-Pacific and Middle East region, with about 700 employees and 26 branches and offices. The bank primarily offers corporate and commercial products and services, including loans, trade finance, treasury, precious metals, foreign exchange and project and transportation financing, correspondent banking, loan syndications, securities investment and retail mortgage financing in selected countries.

Scotiabank will celebrate its 25th anniversary in China in May 2007, commemorating a presence that began with the opening of the Beijing Representative Office in 1982.