Toronto has been selected to be the location of the China Investment Corporation’s (CIC) first overseas representative office. Toronto was selected over a number of international financial centres, including New York and London, who lobbied to host the new office, including New York and London. Manulife Financial Corp. CEO Don Guloien, was quoted in the Globe and, saying, “ this is a huge coupe for Canada and for the City of Toronto”. (China’s sovereign wealth fund sets up shop in Toronto, Globe and Mail, January 12,2011)
Analysts perceive the CIC's decision as both practical and strategic. The Wall Street Journal cites an observer of CIC's activities, noting that Canada "consistently made [CIC] feel welcome." The location choice also facilitates CIC's interest in continuing investments in resources, metals and minerals, agriculture and infrastructure.
David Emerson, former Canadian Trade and Foreign Affairs Minister and advisor to CIC, is quoted as saying that CIC's move, "Is symbolically and substantively significant because it speaks of CIC taking Canada very seriously and wanting to have a permanent presence here."
Toronto in particular - has become one of North America's top financial services hubs. In the recent Global Financial Centres Index released in March 2011, Toronto ranked as one of the top 10 global financial centres. In 2010, the Banker's 2nd International Financial Centers Index ranked Toronto 2nd among financial centers in North America and 7th among 53 centres globally.
According to the Toronto Financial Services Alliance (TFSA), the Greater Toronto Area (GTA) is the third largest financial centre in North America by employment after New York and Chicago. Toronto and the GTA are home to five of the largest domestic banks (all rank among the world’s top 300); 39 foreign bank subsidiaries or branches and 129 securities firms; and five of the top 300 global pension funds (three rank among the top 50 for global Assets Under Management). Toronto is also home to the eighth largest stock exchange in the world based on domestic equity market capitalization.