What is your analysis of the current crisisMr

Zhu Min, Executive Vice President of Bank of China, and Michel Cicurel, President of the Executive Board of the company Financière Edmond de Rothschild (LCF Rothschild), explain the "echoes" the nature and prospects of their alliance.

What is the importance of the partnership that you sign

Zhu Min. we are very pleased of this strategic investment. The Edmond de Rothschild financial company is two hundred and fifty years of family history and a place in the top five asset management. It has a very nice mark, a great name and good products. Its know-how is exactly what we need. It is also a bank very well managed, high-growth for ten years, positive net inflows of capital and liquidity and capital ratios are higher than the minimum prescribed.

Michel Cicurel. A proposed the best international bank in the best country in the emerging economy is a consecration and an exciting prospect. This is a first in the euro area. Bank of China is one of the five global banks with more than 11,000 agencies and implantation in 28 countries.

Why invest in Paris and not at the headquarters of the group in Geneva

Z. M. we have chosen to invest in the French bank that we know for many years for the quality of its management of assets and its management. In addition, the France is an ideal country for us, in the heart of Europe. The agreement is important and advantageous for franco-chinoises economic relations. Investors in our country are more interested in French SMEs. Twenty years ago, China was in need of expertise in technology and management, today it research brands and distribution. In the opposite direction, while financial markets are volatile, China represents a high growth countries, where the French investors are keen to be present.

What concrete content to wait for you and what quantified objectives have you set

Z. M. China's middle class is growing rapidly and it is in need of products and diverse services, for example management of cash, sophisticated products or products retirement... The companies who distribute no dividend, also have much cash to invest. Commissions represent 20 of our revenues compared to 12 for the whole of China's banks. It is a level that we want to increase. Our idea is to jointly develop an open platform, even if the products designed in common will be priority. This will enable us to term to develop our own capacities and know-how.

Mr. c. I am unable to give you figures both the capabilities of Bank of China are huge: it has more than 130 million customers and wants to develop in the private banking and asset management. China account 500,000 millionaires in dollars and Bank of China serves more than 1 million customers in addition to 100,000 dollars of deposits.

Is there not a risk that LCF Rothschild is less strategic for Bank of China in a few years

Mr. c. you gently ask the question whether if we will be "transferred" to run by our partner. I have no fear. Bank of China can develop a huge Department of active management and private banking while leaving a growing place for him bring our innovations. But it must be understood that we are going to produce "white" for Bank of China, without necessarily trying to sell everything under our own brand. We do already with others, in fact, we are a laboratory of ideas and financial solutions. This will not stop. In the world of management, the big banks need smaller homes capable of creating products with high value added because they attract the best talent.

Z. M. this type of agreement is based on the idea that the two parties will grow in the future. But, in practical terms, we will send teams to form in Paris.

Why have incorporated into the agreement a decision-making participation 20 Had the Bank need

Z. M. we wanted to take more! But a 20 level will enable us to consolidate our participation.

Mr. c. Bank of China carries out an investment of 236 million euros, of which 126 million by subscribing to a capital increase of 10 and the balance by purchasing securities of the Fund of deposit and Placement du Québec which has doubled the value of its investment in less than four years. It was not easy to convince Benjamin de Rothschild to dilute its participation although it still holds three-quarters of the LCF Rothschild capital but he is passionate about China. Of course, the participation of the management of employees remains unchanged to about 5.

What is your analysis of the current crisis

Mr. c. we are in the eye of the cyclone! And in such circumstances, nothing is ever completely secure. But I have no reason to change our beliefs to a year ago. It is a severe crisis, but not an explosion of the global financial system because our regulators are exceptionally talented. The recession will extend to the whole world, without decoupling, but it will be limited by the resilience of the emerging world. In a world of recession, inflation risk is absolutely ruled out, therefore also that of the rate increases. After the passage of the hurricane, the world will be the strong growth of the "global 30", probably in eighteen months. Markets shares, dangerously volatile today, will anticipate this resumption and will then offer exceptional opportunities.