NZX links up with Bank of China

NZX has signed a memorandum of understanding with the Bank of China to develop financial products, with a focus on the agricultural sector and capital markets.

In the deal the stock market operator and one of China largest state-owned commercial banks will develop and promote products to both New Zealand and Chinese customers, Wellington-based NZX said in a statement.

The signing of the memorandum was witnessed by Prime Minister John Key and visiting Chinese President Xi Jinping in Auckland.

"The establishment of a formal relationship with the Bank of China highlights our desire to build strong capital markets and make a meaningful difference in wealth creation for domestic and international investors," chief executive Tim Bennett said.

"As China is New Zealand's largest export market, it is important to build relationships and establish communication channels with Chinese based companies."

The deal comes after BOC New Zealand became the 25th lender to be granted a licence by the Reserve Bank of New Zealand on Tuesday, and the third of the major Chinese banks to gain a New Zealand licence after China Construction Bank and Industrial and Commercial Bank of China.

BOC's clients include COSCO, Bright Dairy, Huawei and Haier Group, which all do business in New Zealand, and counts former finance minister Ruth Richardson as a director.

Former National Party minister Chris Tremain is chairman of the local unit.