Financial connections between China and Luxembourg
- 7 Chinese banks have their European headquarters in the Grand Duchy
- The first Chinese bank to establish itself abroad since the establishment of the People’s Republic was the Bank of China in Luxembourg in 1979
- The largest number of Dim Sum Bonds are traded in Luxembourg
- China is the second largest issuer of green bonds worldwide
- The Luxembourg Stock Exchange works closely with the Shanghai and Shenzhen Stock Exchanges to provide international investors with information on Chinese Green Bonds.
7 Chinese banks have established their European headquarters in the Grand Duchy. The first, Bank of China, came to Luxembourg in 1979. At that time, the Bank was the first Chinese financial institution since the establishment of the People’s Republic to ever establish itself abroad. Industrial and Commercial Bank of China followed just before the new millennium and the remaining 5 banks established in the Grand Duchy after 2010.
Dës Banke sinn all an Europa komm fir déi chineesesch Investisseuren, déi ugefaangen hunn sech an Europa ze etabléieren, ze ënnerstëtzen. Haut sinn déi 7 Banken haaptsächlech aktiv wann et ëm Kreditter geet déi dozou déngen déi sëllege chineesesch Betriber a Firmen an de 27 EU-Staaten bei hirer Aarbecht ze ënnerstëtzen.
These banks set up headquarters in Europe in order to be able to better support their Chinese corporate clients when they started developing business in Europe. Today, the 7 banks are mainly active in providing loans to support the many Chinese companies and businesses operating in the 27 EU Member States.
Luxembourg also maintains very close relations with China through the Luxembourg Stock Exchange, which lists the largest number of Dim Sum bonds anywhere in the world. Dim Sum Bonds are only listed outside of China and quoted in the Chinese currency Renmimbi. The Luxembourg Stock Exchange also works very closely with the Shanghai and Shenzhen stock exchanges to provide international investors with information on China’s Green Bonds. This is extremely important, as China is the second largest issuer of Green Bonds in the world.