Shanghai, Geneva banks form strategic partnership

The Shanghai-listed Industrial Bank and Geneva-based private bank Lombard Odier announced in Shanghai on Tuesday they have established a strategic partnership for private banking.

Private banking will be one of Industrial Bank's key businesses and, as domestic demand for private banking services expands and becomes increasingly complicated, the partnership will help the Fuzhou-based lender gain global experience and help Chinese with high net wealth invest globally, said Xue Ruifeng, general manager of the Department of Private Banking at the Industrial Bank.

The Industrial Bank, established in 1988, started offering private banking in 2011 and now has 15,000 private accounts with combined assets under management of some 200 billion yuan ($32.58 billion).

Founded in 1796, Lombard Odier is the oldest private bank in Geneva and one of the largest in Europe, with a presence in nearly 20 countries. It manages some $200 billion globally.

Vincent Duhamel, head of Asia for Lombard Odier, said the partnership will help the lender gain close insights of China's market and local know-how.

While the first generation of China's wealthy eyed fast growth, the second generation is more concerned with preservation and transferring of assets from a risk diversification standpoint, Duhamel said.

"Demands of China's wealthy people for private banking are shifting from pure products to more complicated and diversified services," Duhamel said, adding that China's financial products and asset management solutions may also become of interest to global clients as the market continues to mature and open up.

wuyiyao@chinadaily.com.cn