Following the example of Deutsche Bank, Northern Trust has signed a cooperation agreement with Bank of Communications in China. The idea is to share knowledge on custody and investment management, and especially technology, staff training, and service provision.
Bank of Communications is the fifth largest bank by assets and one of the five banks approved to supply custodial services to domestic fund managers in China. The agreement is intended to give Northern Trust a foothold – as well as understanding – of the Chinese pension, insurance, mutual fund, and wealth management markets.
“The demographics of the Chinese market are very attractive,” commented Peter L. Rossiter, President, Corporate & Institutional Services of The Northern Trust Company. “With a GDP of over US$1.1 trillion, which is expected to continue to grow in the region of 7 per cent this year, a consumer population of 1.3 billion, and domestic savings of US$900 billion, China is already a significant market and one with enormous future potential. This partnership will help us position ourselves to support our clients and their investments in China effectively, while reaffirming our commitment to the Asia Pacific region as a whole,” Rossiter said.
“We have developed an active dialogue with Bank of Communications over the past three years and have hosted training visits by several groups of their staff. This cooperation agreement consolidates the interactions between the two organizations and provides a framework to develop a strengthened business relationship going forward,” explained Lawrence Au, Senior Vice President and Managing Director of Northern Trust’s Hong Kong office.”Bank of Communications is keen to obtain knowledge transfer and training from a leading global custodian to help it develop its custody and related services for the domestic market. Northern Trust brings strong value to the partnership with our highly successful business model and leading product and technology capabilities.”