Chinese Investment Portal

Luxembourg’s privileged access to Chinese capital markets represents an attractive draw for shipowners looking to diversify and expand their investor base

Luxembourg serves as a portal for Chinese actors looking to invest and issue bonds abroad, particularly within the Eurozone. It is also an entry point for foreign investors and issuers looking to do business in China.

Luxembourg plays a key role in facilitating the global expansion of the offshore RMB market, increasing RMB liquidity internationally and promoting its acceptance as a trade and settlement currency.

RMB-denominated Investment Funds

The Luxembourg Stock Exchange (LuxSE) boasts the largest listing of RMB-denominated bonds after Hong Kong, Singapore and Taiwan and is the European leader in the development and distribution of RMB-denominated investment funds. Luxembourg authorises RMB-denominated share classes and Luxembourg UCITS can invest in China A-shares listed on the Shanghai stock exchange. It is the primary domicile for European investment funds launched by Chinese asset managers and ranks second globally in Chinese Exchange Traded Funds (ETFs). Through its cooperation with the Shanghai Stock Exchange, LuxSE also provides public and private offshore investors with transparent information and access to Chinese-listed green bonds.

RMB Loans and Deposits

With the largest pool of RMB deposits and loans in Europe, Luxembourg is a leader in cross-border RMB services.

Several Chinese banks active in ship financing (ICBC, Bank of China, China Construction Bank, Bank of Communications and Agricultural Bank of China) use Luxembourg as their European headquarters through which to grant RMB-denominated commercial loans and syndicated loans to European customers.

Luxembourg ranks second in international RMB payment flows. Using RMB as a trade finance currency can be useful for shipowners seeking to mitigate currency risks of foreign exchange transactions and reducing payment processing delays.

RMB Clearing and Settlement

Luxembourg is the largest RMB securities settlement hub in Europe. RMB bonds issued and sold in Luxembourg and other international jurisdictions are often cleared and settled in Luxembourg.

The ICBC is designated by the People’s Bank of China designated ICBC as a Luxembourg clearing bank.