By John Letzing
ZURICH―-Swiss reinsurance giant Swiss Re AG will begin using
HSBC Holdings PLC's Chinese bank for custodian services, a move
that further ties Switzerland to China's currency.
HSBC said it's the first custodian bank in China to service a
Switzerland-based entity qualified to invest in China's
renminbi-denominated markets.
An official at Zurich-based Swiss Re said the development is "an
important step in Swiss Re's business aspirations."
Switzerland is vying with other countries, including Germany and
the U.K., to become a hub for China's currency, as China seeks to
expand the use of the renminbi for global trade and investment.
Earlier this year, China extended a program for qualified foreign
institutional investors to Switzerland, which included an
allocation of 50 billion renminbi ($8 billion).
Last April, Swiss officials disclosed that state-owned China
Construction Bank, or CCB, had applied for a banking license in
Switzerland. That followed an agreement between the central banks
of Switzerland and China last year, which allowed them to buy and
sell their respective currencies.
Write to John Letzing at john.letzing@wsj.com