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To: fortitude who wrote (1885)	2/13/2001 4:26:44 PM
From: funincolo	Respond to of 2413

OT China to Develop Huge Potential Domestic Investment Market: Canada's Bank of Montreal Signs Cooperation Agreement with China's Fullgoal Fund Management Company BEIJING/TORONTO, Feb. 13 /PRNewswire/ - Canada's Bank of Montreal (TSE, NYSE:BMO) and Fullgoal Fund Management Company Ltd. of China today signed a cooperation agreement to work together to develop China's potential in the mutual fund industry. Signing the agreement is the first step along the road to selling mutual funds following China's imminent membership to the World Trade Organization and the subsequent liberalization of the country's financial markets. Mr. Yu Zhihao, Chairman, Fullgoal Fund Management Company Ltd., and Mr. William A. Downe, Vice-Chairman, Bank of Montreal, formally signed the agreement today in Beijing. Rt. Hon. Jean Chretien, Prime Minister of Canada, and members of the Team Canada trade mission delegation to China attended the ceremony, as did Mr. Li Jianguo, General Manager of Fullgoal, and other leading Chinese observers. Under the agreement, the partners plan to develop a leading asset management company that will operate in the Chinese marketplace and in selected international markets. The intention is to: - Create and distribute mutual fund products domestically in China; - Introduce Chinese mutual funds to international investors; and - Make available to Chinese investors a range of mutual funds from around the world. The Chinese are known as the world's largest savers, saving 40 per cent of disposable income. Savings represent 21 per cent of GDP. It is expected that in five to ten years there will be $115 billion to $225 billion in assets available for management in China. "This alliance opportunity is an ideal fit with Bank of Montreal's strategy of accelerating growth in the most attractive areas such as wealth management, and focusing on one of the fastest growing markets of the global financial services industry," said Mr. Downe. "China represents a highly attractive market that is today largely underserved and untapped. It presents us with an excellent opportunity to leverage our strong asset management capabilities in Canada and the United States, and our experience managing branch networks over long distances." The alliance represents a strong combination of Bank of Montreal's mutual funds expertise and marketing capabilities and Fullgoal's thorough understanding of Chinese markets and business environment, as well as its strong distribution channels throughout China. "China's financial services industry is developing rapidly and the expertise of respected companies such as Bank of Montreal will not only provide a wider range of choice for our savers and investors, but help channel capital into areas of accelerating industrial and economic development," said Mr. Yu, Chairman of Fullgoal. "Fullgoal is attracted to Bank of Montreal because of its ability to bring a new dimension to our existing mutual funds programs, particularly in electronic and branch distribution of funds and in daily management of open- end funds," Mr. Yu said. "Most importantly, we value Bank of Montreal's strong reputation for corporate governance and hope to draw on this experience to strengthen the way our own institution will operate in the world market." About Fullgoal Fund Management Company Ltd. Fullgoal Fund Management Company Ltd. is one of China's largest mutual fund companies, with $1.5 billion in assets under management. Registered in 1999, Fullgoal is one of only ten fund management companies established with the approval of the China Securities Regulatory Commission. About Bank of Montreal Bank of Montreal, Canada's first bank, is a highly diversified financial services institution and one of North America's largest with average assets of $235 billion, $301 billion in assets under management and administration, and more than 32,000 employees. It operates more than 30 lines of business, among them a broad range of wealth management services, including mutual funds and other retail investment products, full service investing and direct investing, private banking and institutional money management. Bank of Montreal has a long history with China dating back to the early 1800s. In 1996, it was the first Canadian bank, the third from North America and the eighth in the world to be granted a branch license in Beijing. Today, with branch offices in Beijing, Guangzhou and Hong Kong, the bank is one of the leading foreign financial institutions in China. Bank of Montreal is also known for its leadership in corporate governance. The bank has just received "The Conference Board of Canada and Spencer Stuart 2001 Award in Governance for the Private Sector" and last year was honored with "The Institutional Shareholders Service 1999 International Award for Corporate Governance" (awarded to only 8 out of 5000 international companies). /NOTE TO PHOTO EDITORS: A photo accompanying this release is available on the Canadian Press Photo Network/ SOURCE Bank of Montreal