Bank of Beijing, China's biggest city bank in terms of assets, said on Monday it would establish a fund management venture with Canada's Bank of Nova Scotia.

The Beijing-based joint venture would have a registered capital of 300 million yuan (44 million US dollars), it said in the half-year report.

The Bank of Nova Scotia, Canada's third largest lender by assets, will own 33 percent of the venture, while Bank of Beijing and an unnamed third party would shoulder the remainder. No other details were given.

"The Bank of Beijing is seeking to expand its business nationwide, and plans to improve its banking service network in three years," said chairman Yan Zhubing.

The bank would open its Shenzhen branch before the end of September, while Hangzhou branch has been officially approved by the government.

The bank's first-half net profit was 2.9 billion yuan, representing an increase of 121.48 percent over the end of last year. Earnings per share rose 80.77 percent to 0.47 yuan.

Total assets stood at 363 billion yuan by June, up 2.58 percent over the end of 2007.

The bank's shares rose 1.7 percent to close at 9.67 yuan on Tuesday.

(Xinhua News Agency August 27, 2008)