Europe’s premier Dim Sum bonds listing venue
As a result of the internationalisation of RMB, the Dim Sum Bond market has grown since its inception and the Luxembourg Stock Exchange (LuxSE) is one of the leading exchanges for the listing and trading of these instruments. LuxSE helped establish the Eurobond market in 1963 and has since become the leading Exchange for international capital market transactions.
The LuxSE ranks first globally in terms of global Dim Sum Bond listings, ahead of London and Hong Kong, confirming its strong position as the leading exchange for international debt securities. The first RMB denominated fixed income security to be listed in Europe was issued by Volkswagen in May 2011 on the LuxSE. Since then, the amount of Dim Sum Bonds listed on the exchange has grown substantially.
Luxembourg and China’s green revolution
China needs to access the international investor community for around 50 % of its funding of green bonds and requires innovative global partnerships to do so. Therefore, in 2017, Luxembourg and China decided to build bridges through the launch of the Green Bond Index Series. The green bond indexes are displayed simultaneously on the Shanghai, Shenzhen and Luxembourg stock exchanges and are important for raising awareness about the performance of Chinese green bonds.
The relationship has been deepened with the development of an additional Green Bond Channel. The Green Bond Channel is an information channel which bridges the information gap between Chinese issuers and international investors. Green bonds listed on the Shanghai exchange can be traded via existing channels and the cooperation with LuxSE focuses on providing exhaustive information in English to offshore investors.
As of May 2018, 23 green bonds of Chinese issuers are displayed on the LGX (Luxembourg Green Exchange), representing 13 % of all the Green Bonds displayed on the platform.
Among Chinese Green Bonds issued in 2018, 23 % of them were issued outside China. Luxembourg is a premier choice for Chinese institutions listing Green Bonds in Europe. In 2016, LuxSE launched Luxembourg Green Exchange focusing exclusively on green securities. In July 2016, the US$ 2.8 billion multiple tranche Green Bond issued by BoC was listed on the exchange. In March 2017, LuxSE cooperated with Shenzhen stock exchange to launch the Green Bond Series.
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CONNECTING CHINA AND EUROPE
China Merchants Bank (CMB), China Everbright Bank (CEB) have chosen Luxembourg as their principal European domicile. Bank of Singapore has also opened a wealth management subsidiary in Luxembourg
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INVESTMENT FUNDS
Luxembourg is the global hub for cross-border investments and a gateway for Chinese investment flows
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RMB DENOMINATED BONDS
As a result of the internationalisation of RMB, the Dim Sum Bond market has grown since its inception and the Luxembourg Stock Exchange (LuxSE) is a one of the leading exchanges for the listing and trading of these instruments
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CLEARING AND SETTLEMENT
Since 2013, the PBoC began to designate overseas subsidiaries of Chinese banks to act as offshore RMB clearing banks. In Luxembourg, ICBC Luxembourg Branch functions as the official RMB clearing bank.
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PAYMENTS
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