Canada's BMO Financial Group has opened its incorporated China-based subsidiary, Bank of Montreal (China).

The new company, based in Beijing, will be headed by Gilles Ouellette, the president and chief executive of BMO's Private Client Group, as chairman. The branch will be primarily regulated by the China Banking Regulatory Commission, the People's Bank of China, and the State Administration of Foreign Exchange. Subject to regulatory approvals, the new products and services at the company may include renminbi retail offerings to Chinese citizens, the distribution of domestic mutual funds and RMB Trust wealth management products, Chinese government bond underwriting, and the sale of other financial products.

"China is a key growth market for BMO outside North America, and 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," Bill Downe, president and CEO of BMO Financial, said in a statement.

"National treatment will ensure we can grow at a faster pace as China embraces financial liberalisation and regulatory reform," he added.

BMO has had a rich history of operations in China, dating back to 1818, when it first had a forex transaction to spur trade with the Asian country. Among its services are a dedicated team of advisors under BMO Harris Private Banking, which assists high net worth individuals seeking to emigrate or invest in Canada and the US. The firm also has a 28 per cent equity interest in the Chinese fund manager Fullgoal Fund Management.