Luxembourg number one in renminbi business in Europe, third worldwide
Figures of renminbi business in Luxembourg have again shown an impressive growth in the first quarter of 2014 and confirm the country’s leading position in international renminbi business. RMB deposits increased by 24% to 79.4bn RMB compared to 2013’s end of the year figures. RMB loan portfolios now amount for 73.0bn RMB, passing a slight decline in Q4 2013 and showing an impressive increase of 36%.
Trade finance figures remain stable, reaching 33.9bn RMB. Luxembourg thus has the largest trade finance volumes in Europe. Also in the area of investment funds, RMB business grew to 261.8bn RMB. As the world’s largest investment fund centre, Luxembourg naturally heads this business field in Europe.
The most significant development can be registered in RMB securities settlement volumes. On a year-on-year basis, figures increased by 247% to 408bn RMB. Securities are held by various international financial institutions from all over the world, from which the largest portfolios are held by investors from Hong Kong (28.4%), Singapore (27.0%) and Macau (26.0%).
The Luxembourg Stock Exchange (LuxSE), the leading exchange for international listed bonds in Europe, now has 46 Dim Sum bonds listed with a volume of 32.9bn RMB. In May 2011 already, the first Dim Sum bond issued by a European company outside Greater China was listed on the Luxembourg Stock Exchange. Three years later, in May 2014, the first Dim Sum bond issued by a Chinese entity in the Eurozone was listed at the LuxSE, the so-called Schengen-Bond. 63% of bonds listed on the LuxSE originate from Europe, 20% from the Americas, 15% from Asia and 2% from the Middle East. Given the continuous success of the exchange in renminbi business in the past, the LuxSE remains at the forefront of Dim Sum bond listings in Europe.