A trio of Canadian financial institutions are taking steps to expand their operations in China.

Bank of Nova Scotia has been granted a local currency banking license for its branch in Guangzhou and Sun Life Financial Inc. has been granted approval to begin preparing operations for selling life insurance in Beijing.

Not to be left out, Manulife Financial says its subsidiary, Manulife-Sinochem Life Insurance Co. Ltd. will also open a branch office in Beijing

Scotiabank is the first Canadian bank to receive a license for local currency business in China. The license allows Scotiabank to conduct business using Renminbi, mainland China’s national currency, with foreign companies and a select group of local companies in the nine industrialized cities open to foreign banks for this type of business.

“This license gives us an excellent opportunity to expand our level of service in the Chinese domestic banking market,” said Robin Hibberd, senior VP, Asia/Pacific and Middle East, Scotiabank, in a news release.

Previously, Scotiabank could only accept deposits and grant loans in foreign currencies in China. Bank services available in China include: deposits, foreign currency exchanges, cash advances, loans, letters of credit, letters of guarantee, collections, balance reporting and wire/SWIFT transfers.

Scotiabank has been operating in China since 1982, with two branches (Guangzhou, Chongqing) and a representative office in Beijing. In September 2002, Scotiabank and the International Finance Corporation signed a Memorandum of Understanding with Xi’an City Commercial Bank for a minority stake in XACB. This investment is expected to be completed later this year or early 2004.

As for Sun Life, the insurer has been granted approval by the China Insurance Regulatory Commission to begin preparing operations for selling life insurance in Beijing with its joint venture partner China Everbright Group Ltd.

Canadian Prime Minister Jean Chrétien attended the reception in Beijing to celebrate receiving the approval.

With a population of approximately 13 million people, Beijing is one of the most significant markets in China.

“This historic milestone is excellent news for Sun Life Financial shareholders and key to our long-term growth plans in Asia. With our joint venture partner, we will begin to offer world-class life and health insurance products to meet the expanding needs of this vibrant emerging market,” aid Donald Stewart, Sun Life Financial’s CEO, in a news release

The joint venture, Sun Life Everbright, has been operating in Tianjin for more than a year and has 2,500 agents located in 16 sales offices. Tianjin is the second largest city in north China with a population of more than 10 million.

Sun Life Everbright has developed insurance products for the growing Chinese market and offers term, critical illness and participating products.

Manulife Financial says its subsidiary, Manulife-Sinochem Life Insurance Co. Ltd. will also open a branch office in Beijing. This is Manulife-Sinochem’s second branch license.

According to Manulife, it is the first multiple-branch license granted to a foreign-invested joint venture life insurance company by the CIRC.

Prime Minister Chrétien also joined Manulife-Sinochem representatives, including Manulife Financial Corporation’s president and CEO Dominic D’Alessandro, for an official ribbon-cutting ceremony today in Beijing to mark the beginning of preparations for the new Beijing branch