Vontobel is teaming up with China's second-largest bank on a product linked to the giant belt-and-road initiative. The move follows a visit by Switzerland's president to Beijing with a delegation of Swiss bankers.
China Construction Bank, or CCB, and Vontobel plan to lauch a financial product as part of the Belt and Road Initiative (BRI), the Swiss bank said in a statement on LinkedIn.
The product due to be jointly set up by CCB and Vontobel will track the stock performances of companies that are likely to benefit most from the BRI. CCB will use its insights into the Chinese government's initiative to formulate the investment strategy and the selection of companies for the index. The Swiss private bank is in charge of product structuring and distribution to eligible investors in Switzerland and several member states of the European Economic Area.
State Visit
The move comes as Swiss President Ueli Maurer met with Chinese leader Xi Jingping in a state visit on Monday, the Swiss government said in a separate statement. Together with Herbert J. Scheidt, chairman of the board of directors of Vontobel and the Swiss delegation, the two heads of state were welcomed by senior executives of China Construction Bank (CCB), including Chairman Tian Guoli.
Belt and Road Initiative
The two presidents discussed a range of topics on trade and finance and signed a memorandum of understanding in relation to the BRI. China and Switzerland will coordinate on issues of trade, investments and project financing in countries along the BRI route.
In a series of other meetings, Swiss President Maurer was also welcomed by Chinese central bank President Yi Gang as well as Jack Ma, the head of Alibaba (see picture above).
