Renminbi volumes in Luxembourg continue to increase
New figures published by Luxembourg for Finance reveal a continuing increase in international renminbi business volumes in Luxembourg. The pool of RMB deposits held by banks in Luxembourg climbed up to 67.2 RMB bn in H1 2014, compared to 64.0 RMB bn in H2 2013. Loan portfolios increased by 35% to 72.8 RMB bn in H1 2014, compared to 53.8 RMB bn in H2 2013.
RMB assets held within Luxembourg domiciled funds decreased slightly by 9% to 238.3 RMB bn, due to the underperformance of China’s equity markets over the first half of 2014.
The turnover of RMB securities in H1 2014 already exceeded volumes of the full year 2013: 690 RMB bn in H1 2014 compared to 635 RMB bn in 2013. Holders of RMB denominated securities mainly originate from Asia, namely Singapore (30.1%), Hong Kong (28.2%) and Macau (21.3%), whereas holders of Dim Sum bond issuers in Luxembourg represent European countries with Germany 16.4%, France 14.3%, the Netherlands 9.5% and the UK 9.5%.
The evolution of Dim Sum bonds listed at the Luxembourg Stock Exchange (LuxSE) also shows an upward trend with 42 RMB-denominated bonds in H1 2014 with 28.3 bn RMB assets under management compared to 40 such bonds in H2 2013 with 24.7 bn RMB AuM.
Luxembourg thus confirms its position as the leading international renminbi hub in the Eurozone in terms of volumes in loans and deposits.