China, Switzerland to enhance financial cooperation

Chinese Premier Li Keqiang holds talks with President Simonetta Sommaruga of the Swiss Confederation in Davos, Switzerland, on Jan. 21, 2015. [PhotoXinhua]

Expressing her willingness to strengthen cooperation with China, especially in the financial sector, President Sommaruga said Switzerland could become an offshore renminbi center in Europe.

As the RMB, also known as yuan, is rapidly gaining traction in international transactions, China has established offshore RMB markets in Hong Kong and London, among other places.

In July last year, Chinese and Swiss central banks signed a bilateral currency swap agreement worth 150 billion yuan (24 billion US dollars) in a bid to provide liquidity support for bilateral trade and economic cooperation.

Li is attending the WEF meeting in Davos and paying a working visit to Switzerland, his second trip to the Alpine country since he took office in 2013.

This year marks the 65th anniversary of the establishment of diplomatic ties between China and Switzerland.

Switzerland, famous for its precision instruments and pharmaceuticals, was the first among the world's top 20 economies to reach a free trade deal with China.

Launched in 2002, the QFII program aims to speed up the yuan's convertibility under the capital account by allowing licensed foreign investors to use offshore renminbi to invest in China's capital market.