News - 04.08.2017

China Everbright Bank : the seventh Chinese bank to choose Luxembourg as European hub

  • Renminbi

China Everbright Bank (CEB) has received approval to set up its subsidiary in Luxembourg. This strategic move will strenghten CEB’s operations in Europe and confirms Luxembourg’s position as the main gateway for Chinese banks into the European market.

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Established in 1992, China Everbright Bank is headquartered in Beijing and focused on corporate, treasury, investment banking, wealth management and mortgage businesses.

China Everbight Bank is the seventh Chinese financial institution to choose Luxembourg for its European continental hub. Due to its stable economic environment, the sound regulatory framework and its profound expertise in financial services and renminibi business, Luxembourg already serves as the continental hub for Agricultural Bank of China, Bank of China, Bank of Communications, China Construction Bank, China Merchants Bank and Industrial and Commercial Bank of China.  Bank of China was the first Chinese bank to come to Luxembourg almost four decades ago, in 1979, to set up its first ever overseas subsidiary, after the creation of People’s Republic of China, in the Grand Duchy.

Shanghai Pudong Development Bank is also planning to be present in Luxembourg in order to serve the European market. When approved by the Chinese and Luxembourg regulators, this will bring the total number of Chinese banks in Luxembourg to eight.

Luxembourg is one of the leading renminbi centers in Europe. During the last months, Luxembourg’s connections with China have been further deepened in the field of climate finance. Not only do Chinese banks list Green bonds in Luxembourg, but the Luxembourg Stock Exchange (LuxSE) has also partnered with the leading Chinese stock exchanges, Shenzhen Stock Exchange and Shanghai Stock Exchange, to create the first Chinese Green bond index series, synchronously displaying quotes in China and Europe. The indices aim to provide greater transparency and facilitate access to Chinese green securities for investors in Europe.

Facts and figures:

  • Luxembourg is the 2nd largest global domicile of investment funds investing into Mainland China behind Hong Kong
  • Luxembourg is the largest listing centre in Europe for Dim Sum bonds and second globally behind Hong Kong
  • Luxembourg is the leading European RMB and RQFII centre