Zurich has managed to attract two Chinese banks in recent years, while Geneva has thus far missed out. This could however change, which would be a blessing for the city.
Wembing Geng, the Chinese ambassador to Switzerland, promised «Tribune de Genève»: Bank of China will open an office in Geneva. The Asian banking giant is particularly attracted by the trade financing business in Geneva. The move comes shortly after Agricultural Bank of China (ABC) apparently decided to also open a branch in the French-speaking city.
This is very good news for the second Swiss financial center, which in recent months has seen more foreign bank departures than arrivals. Geneva was also disappointed when other Chinese institutions decided against opening up shop there. Both the China Construction Bank (CCB) as well as the Industrial and Commercial Bank of China (ICBC), preferred to go to Zurich.
Hammer Blow
The decisions represented a hammer blow for the Geneva proponents, according to the newspaper, and projects like the partnership between the universities of Geneva and Peking failed to bear fruit.
Pierre Maudet, a local government minister, wouldn’t give up. When Chinese President Xi Jinping visited the World Economic Forum early in 2017, the two managed 25-minute chat on the train to Davos. In July, things «clicked» after meetings in Peking between Geneva officials and the vice-president of the Bank of China.
Failed Private Banking Start
If deeds follow promises then Geneva can finally draw a line under this unhappy chapter. In 2008 the Bank of China was greeted with much pomp and ceremony when it opened a private banking subsidiary in Geneva.
However cultural differences, management mistakes and customer complaints resulted in the Chinese drawing the line under the venture. In 2012 they sold the rest of their Swiss business to Zurich-based Bank Julius Baer.
