Luxembourg deepens ties with China, signs up two more banks

Added 28th October 2016

China Everbright Bank and Shanghai Pudong Development Bank, have confirmed plans to set up a presence in Luxembourg to serve the European market which, when given regulatory approval, will bring the total number of Chinese banks in the Grand Duchy to eight.

Luxembourg deepens ties with China, signs up two more banks

Earlier this week, PingPong, a rapidly-growing Chinese fintech company, announced that it had applied for a payment institution license in Luxembourg.

The agreements have all come as the result of a trip to China by 110 financial industry executives headed by the Crown Prince of Luxembourg and led by the finance minister, Pierre Gramegna.

Deals done

During the trip Luxembourg also signed four Memoranda of Understanding (MOUs) and one agreement.

The MOUs signed were with the Shanghai Financial Association; the Insurance Association of China; the China Merchants Bank, and Qianhai Financial Holdings. The agreement was between Fudan University and the University of Luxembourg for the establishment of a Confucius institute at the University of Luxembourg.

“This year’s mission reaffirms Luxembourg’s commitment to a close cooperation with China,” Luxembourg for Finance (LFF), the agency responsible for developing the city state’s financial centre, said in a statement.

Growing ties

“With its historical roots in international finance, Luxembourg will continue to act as a bridge for financial institutions inside and outside the EU, while supporting investors in their economic activity with China and the world,” it added.

LFF said Luxembourg-based funds currently account for 68% of European assets invested in mainland China.

It noted that last year, the People’s Bank of China granted Luxembourg a 50bn RMB quota under the the renminbi qualified foreign institutional investor scheme (RQFII), which highlighted the expertise available domestically that is required to access the Chinese market.

“Compared to other financial centres in Europe, Luxembourg is today by far the leading domicile for RQFII funds,” it said.

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Richard Hubbard

Group Editor

Richard Hubbard is the group editor at Last Word. He is responsible for the editorial content of International Adviser, Portfolio Adviser, Expert Investor and Fund Selector Asia. Richard previously worked for Thomson Reuters and has covered the financial services industry and investment themes from its offices in London, Singapore, Hong Kong and New York. Richard started his career at the Australian Financial Review in Sydney.

Features

Why advisers need to ‘keep their mouths shut’

Why advisers need to ‘keep their mouths shut’Lock icon

Award-winning adviser and author Deena Katz outlines the importance of conversation, academic training and the rise of fee-based advice in the US.

Analysis

Profiles

Directories

Canada Life International Limited
Canada Life International...

Canada Life International Canada Life House,...

Tweets

Events

IA Portfolio Bond & Tax Planning Forum Birmingham 2017
IA Portfolio Bond & Tax Planning Forum Birmingham 2017

Tuesday 20 June
The Hyatt Regency, Birmingham

 

IA International Fund Links Forum 2017
IA International Fund Links Forum 2017

Wednesday 14 September

The Langham, London

IA Best Practice Adviser Awards Europe 2017
IA Best Practice Adviser Awards Europe 2017

Thursday 28 September
The Waldorf Hilton, London

IA Future Advisory Forum Europe 2017
IA Future Advisory Forum Europe 2017

Thursday 28 September
The Waldorf Hilton, London

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...