BMO Financial Group and Fullgoal Fund Management Company Ltd. of China announced Wednedsay that BMO has received approval from the China Securities Regulatory Commission to acquire an interest in Fullgoal.

BMO’s holding in Fullgoal is equal to the five existing shareholders.

Fullgoal and BMO Financial Group signed a co-operation agreement in February 2001 to work together to develop China’s potential in asset management, investment funds and pensions. BMO is the first foreign company to acquire an interest in an established fund management firm in China.

BMO will first be working with Fullgoal to create and distribute mutual fund products domestically in China. Future plans include introducing Chinese mutual funds to international investors and, when regulations permit, offering mutual funds from around the world to Chinese investors.

“The business BMO Financial Group is developing in China is among the most important long-term initiatives we have outside of our North American base. Our partnership with Fullgoal presents a tremendous opportunity for BMO to leverage its strong asset management capabilities in Canada and the United States,” said William Downe, deputy chair, BMO Financial Group and CEO, BMO Nesbitt Burns, in a news release

The Chinese are the world’s largest savers, saving over 30% of annual disposable income, representing about 40% of GDP. Currently, there are approximately $1.6 trillion in Chinese bank deposits. It is expected that in five to 10 years there will be $102 billion to $205 billion in assets available for management in China.

Fullgoal Fund Management Company Ltd. is one of China’s largest mutual fund companies, with over $1.4 billion in assets under management. Fullgoal has four closed-end funds, one open-ended fund and it has submitted an application for regulatory approval to launch a sixth fund.

Registered in 1999, Fullgoal’s shareholders include several of China’s leading securities firms and investment and trust companies. Fullgoal is one of the original fund management companies that was established with the approval of the China Securities Regulatory Commission.

In 1996, BMO was the first Canadian bank, to be granted a branch license in Beijing.