Toronto, Ontario, Canada's financial services capital, and China's commercial bank have a long-standing relationship. In 1993, Toronto became the first location of the Bank of China's wholly owned subsidiary, Bank of China Canada (BOCC). In 2012, BOCC established its new headquarters just north of Toronto in Markham, Ontario.

And thanks to the leadership of the Toronto Financial Services Alliance (TSFA), as of March 23rd, 2015, the Industrial and Commercial Bank of China (Canada) in Toronto became the first and only designated Chinese Renminbi (RMB) clearing bank in the Americas. In addition to the tangible benefits the hub offers Ontario businesses and consumers, this official designation also speaks to Ontario's prominence as a centre for global finance.

New hub offers cost savings and opportunity to Ontario businesses

The currency trade hub enables Ontario businesses to convert directly into Chinese RMB without the need for an intermediate conversion to U.S. dollars. This alone will allow Canadian businesses to save an estimated $6 billion over the next decade, according to the Canadian Chamber of Commerce. Additionally, the new hub offers opportunities to Ontario's financial services sector which can now offer its clients RMB deposit accounts and other Chinese currency-based products, while institutional investors, such as pension funds, can now buy up to 50 billion RMB (roughly $10 billion CAD) worth of Chinese bonds and stocks directly.

Chinese currency trading hub bolsters Ontario-China trade

Toronto joins an elite list of Chinese currency trading hubs which includes Seoul, Hong Kong and Singapore. The hub strengthens an already significant trade relationship between China and Ontario. Next to the U.S., China is Canada's second-largest trade partner and a significant proportion of that trade takes place in Ontario. In 2013, two-way trade between China and Ontario equalled $32 billion. The Canadian Chamber of Commerce estimates that the hub may increase Canada's exports to China by more than $30 billion over the next 10 years.

Businesses that locate in Ontario benefit from the convenience of being able to convert directly into the Chinese currency and in knowing that they are ideally positioned to take advantage of market opportunities in China.

 

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