Listing Dim Sum Bonds in Luxembourg
Dim Sum bonds (also called offshore RMB bonds or CNH bonds) are bonds denominated in renminbi (RMB) and which represent a growing portion of China’s total local-currency debt.
As the world’s most popular destination for inward investment, China wants to internationalise its currency to attract even more foreign investors. The amount of RMB deposits has increased significantly since 2006, especially in Hong Kong, the region’s most important offshore financial centre. Today, Luxembourg is Europe’s leading offshore financial centre for RMB, with the Luxembourg Stock Exchange listing two thirds of Dim Sum bonds currently listed on European exchanges.
Dim Sum issuers recognise Luxembourg’s position as a leading international financial centre. Some of the advantages of the Grand-Duchy of Luxembourg include:
- Financial, political and social stability
- One of the world’s safest business environments
- Europe’s leading location for captive reinsurance and investment funds
- Largest private banking centre of the Eurozone
- The main recipient of Chinese foreign direct investment flows to Europe.
The Luxembourg Stock Exchange (or Bourse de Luxembourg) is a worldwide leader for listing. It is also ranked number 1 in Europe for Dim Sum bond listing. Resolutely international in its operations, it serves a large variety of issuers, including many from Asia. Today, thanks to its strong economic ties with China and its long experience in listing international securities, the Luxembourg Stock Exchange is established as the stock exchange of choice in the European markets for Dim Sum bond listings.