Canada could be the single most interesting place in the world in which to invest, especially for global investors who want to gain greater access to China, according to Bill Downe, Deputy Chair, BMO Financial Group and CEO, BMO Nesbitt Burns.
In a speech today to the Canadian-Swiss Association in Zurich, Switzerland, Downe said “With the continuing strength of NAFTA trade, the rising value of the Canadian dollar, and the booming trade opportunities with China, Canada offers a unique opportunity for global investors.”
“Because the Canadian and U.S. economies have become so integrated under NAFTA, Canadian equities give the global investor an opportunity to play the U.S. market with a hedge against the greenback,” said Downe.
Downe told the audience of European investors that they can now also use Canada as a China play, on the strength of China’s voracious demand for Canadian commodities. “Canada represents a low-risk, high-return opportunity for global investors to share in the booming Chinese economy,” he said.
“The global reach, the leading expertise, and the resource wealth of Canadian companies are all very attractive features to Chinese business. In fact, China is using the proceeds from its huge trade surplus not just to buy commodities, but to invest in the companies that produce them,” Downe said. “Some of Canada’s biggest resource companies are now possible plays for a Chinese economy flush with investment cash.”
Downe concluded Canada continues to maintain a preferred position with China. He added that companies, such as BMO, which have demonstrated long-term commitment and have taken the time to cultivate personal relationships with China’s leaders, are the most likely to succeed. “These are precisely the kinds of companies that global investors should contemplate if they want to make a backdoor play into the lucrative Chinese market.”
Canada offers doorway for global investors
Opportunities to play U.S. and China markets, says BMO Nesbitt CEO
- By: IE Staff
- January 28, 2005 January 28, 2005
- 10:30