SwissBanking
The online magazine of the Swiss Bankers Association
June 30, 2015

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Renminbi-Hub: A busy year

Renminbi-Hub: A busy year

Establishment of a swap line, RMB clearing in Switzerland and a first Chinese bank applied for a banking licence - lots of success for the Renminbi Hub Switzerland within only one year.

In June 2014, the Swiss Bankers Association (SBA) and the China Banking Association (CBA) organized the First Chinese-Swiss Financial Roundtable in Switzerland. Since then, the central banks of China and Switzerland have established a swap line, agreed on RMB clearing in Switzerland, a Swiss RMB Qualified Foreign Institutional Investor (RQFII) quota was granted, and the China Construction Bank (CCB) will start operations in Zurich later this year. The next government-to-government financial dialogue and private sector-led Financial Round Table are planned for September 2015 in China.

China Construction Bank will start operations in Zurich later this year.

Probably in Early September 2015, the Third Sino-Swiss government-to-government financial dialogue, the Second Chinese-Swiss Financial Round Table, and a joint SBA-CBA educational pilot program will take place in China. The round table will focus on

  • the growing use of the RMB in Switzerland and Europe, the advantages Chinese and
    Swiss /European businesses see in the wider use of the RMB,
  • RMB products offered by Chinese and Swiss banks to their international clients and products asked for by clients (but not yet available),
  • as well as measures planned or intended by China to further internationalize the RMB and to facilitate market access to the Chinese market

Senior managers and specialists from Swiss banks are especially required to take note of the Roundtable and the educational pilot program as both are important elements to further develop collaboration between China and Switzerland.

The Swiss financial centre will have a level playing field.

Hence, the main elements of a Swiss Renminbi Hub will be in place by the end of the year, and the Swiss financial centre will have a level playing field with London, Frankfurt, Luxemburg and Paris. Each of these financial centres will seek to leverage their particular strengths serving domestic, European and Chinese clients. Swiss banks will be able to extend their world-class expertise in wealth management, asset management and commodity trade-related services to Chinese firms and investors, and to clients around the world interested in the growing RMB market.