Positioning Luxembourg as an international Renminbi centre
Diversification and internationalisation are the key elements of the strategy for the future development of the Luxembourg financial sector. The positioning of Luxembourg in the context of the internationalisation of the Renminbi (RMB) is one of a series of joint efforts by the private sector and the Government in the pursuit of this objective. To support this positioning, the Ministry of Finance has launched a Steering Committee that brings together the principal actors of the private and public sectors in order to implement the strategy.
Following the mission to China in January 2013 led by the Minister of Finance, Luc Frieden, a high level delegation recently visited Beijing again. The purpose of this mission was to update Chinese authorities on the increasing role of the Luxembourg financial centre in the internationalisation of the RMB.
Luxembourg is keen to strengthen its economic ties with China, which has established itself as the second largest economy in the world.
On the one hand, Luxembourg is the European headquarter of three Chinese banks. Following Bank of China and ICBC, China Construction bank recently received its license to open up an office in Luxembourg.
On the other hand, with 62bn RMB in loans issued by Luxembourg banks, roughly 40bn RMB in deposits and almost 220bn RMB invested in funds domiciled in the Grand Duchy, Luxembourg ranks first amongst the centres handling Renminbi business in the Eurozone. Moreover, 39 RMB denominated bonds are listed at the Luxembourg Stock Exchange with a combined value of 24bn RMB. The Luxembourg Stock Exchange was the first stock exchange to list a RMB denominated commercial bond outside China, in May 2011.