Ottawa, April 23, 2010
2010-031
The Honourable Jim Flaherty, Minister of Finance, today welcomed an agreement with the China Banking Regulatory Commission that designates Canada as a destination for Chinese banking wealth management business under China’s Qualified Domestic Institutional Investor (QDII) program.
“This agreement will give Canadian financial markets access to up to US$8 billion in investment capital,” said Minister Flaherty, who made the designation a key objective of his trip to China in August 2009.
“This represents a strong vote of confidence in Canada’s economic prospects and the soundness of Canada’s financial system.”
The QDII program allows approved institutional investors in China, including banks, fund management companies and insurance firms, to invest funds pooled from their mainland clients in approved overseas financial markets.
China’s three financial sector regulatory commissions, for banking, insurance and securities, share responsibility for the program. To date, the banking and securities commissions have concluded an exchange of letters with the provincial securities commissions, allowing Canada to be designated as a destination for mainland China investment.
Canada is working with the China Insurance Regulatory Commission to conclude an agreement to facilitate Chinese insurance companies’ wealth management investments in Canada.
“This is a timely agreement, coming as our fellow G20 partners discuss the need to maintain open capital markets,” said Minister Flaherty. “It also reinforces to me the value in personally visiting our trading partners to discuss issues of mutual importance. I hope to return to China in the near future to continue the valuable dialogue we have established.”
For further information, media may contact:
Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861
David Barnabe
Media Relations
Department of Finance
613-996-8080
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