CHINA- Swiss FINANCE
Q5: Switzerland and China have established sound bi lateral relat ionships in the financial sector. Could you please introduce to us the latest developments made by the two countr ies in financial cooperation? How can the two countries achieve financial connectivity in the future?
Jean- Jacques de Dardel : Switzerland is currently positioning itself as one of the leading centers for the internationalization of the RMB in Europe. More than one year ago, China Construction Bank’s Zurich branch was approved to clear Renminbi trades. Other Chinese banks are looking to enter the Swiss market following CCB’S move. Currently, Switzerland is ranked third in foreign financial centers trading the Chinese currency, only behind London and Frankfurt.
In April, a high- level Swiss delegation led by Federal Councillor Ueli Maurer, Head of Swiss Department of Financial Affairs, accompanied by representatives from the Swiss banking, insurance and finance sector, visited China. More than 30 bilateral meetings and several promotional events were held with Chinese ministers and authorities, state institutions and financial center stakeholders.
The talks focused on bilateral and multilateral issues, and concrete cooperation at the state and private sector levels. Either the continued willingness to cooperate was reiterated or ideas and impetus for new projects and/or concrete progress were achieved in areas of regulations, positioning in multilateral bodies, market access, investment and infrastructure projects and Fintech.
The latest installment of talks between China and Switzerland deepened relations between the two countries. Switzerland’s Free Trade Agreement with China came into force three years ago, and the financial entities are looking to do more business with China. Q6: China has established offshore RMB market in Swi tzerland. What is your comment on the internalization of RMB? What influences will it bring to the world?
Jean-jacques de Dardel: Zurich and Geneva are among the most important international financial centers in Europe besides London. Switzerland and China have intensified their financial cooperation considerably in recent years and plan to further progress their collaboration going forward. The Swiss Financial Center is very well-positioned to serve clients in Switzerland and around the world with RMB products and services, and our country is very well equipped to tap the potential of the growing RMB business. China-swiss cooperation in the offshore RMB business will remain subject to further fruitful stimulus in the near future.
It is already visible that the internationalization of the RMB brings interesting new opportunities to the Chinese market in supporting Chinese trades as well as the internalization of the Chinese cross border financial s e r v ic e s . RMB a l s o p r o v ide s diversification in terms of a reserve currency for central banks around the world.