China’s banking, financial services and renminbi grow in Luxembourg

One of the things I’ve loved most about developing VitalBriefing is our ability to move fast to meet our customers’ needs. So when one of them noted a fast-rising interest in a trustworthy, curated Briefing – our bread and butter – about the world’s biggest financial business opportunity, we jumped at the idea.

Please welcome our latest product: the China Financial Industry Briefing. As anyone in the global financial world knows, Luxembourg has smartly evolved as a major conduit both for Chinese financing and investments flowing into Europe. In addition to the six largest Chinese banks setting up EU headquarters in the Duchy – most recently Agricultural Bank of China, China Merchants Bank and Bank of Communications – last Fall, China began direct trading of the renminbi with the euro.

“This decision will encourage investors who use the euro as a base currency to directly trade in renminbi, since it will lower transaction costs,” points out Nicolas Mackel, CEO of Luxembourg for Finance, which promotes the Grand Duchy as a global financial center. “Thus RMB business volumes in European RMB centers such as Luxembourg are likely to increase.”

In fact, Luxembourg is cementing its place as the major hub for international renminbi business in the euro zone. As a result, renminbi loan portfolios in Luxembourg are fast rising, as are renminbi deposits held by banks in Luxembourg.

And with Luxembourg UCITs offering a channel to access Chinese securities, the attractiveness of the Duchy as a portal to investment in China has only grown, and that growth extends beyond the financial sector into all manner of business, from e-commerce to aerospace.

Luxembourg’s Finance Minister, Pierre Gramegna, has been courting Chinese business with a passion. “The Chinese have mentioned the seamless way of doing business here as a key advantage,” he told the BBC last year.

As with all our products, clients around the world can benefit from our curated, concise and invaluable summaries of key developments in this major market. Covering Financial Regulation, Monetary Policy & Lending, Financial Sector M&A, International Banking, Technology & Innovation, China Fund Industry, and Equity & Debt Offerings, our latest Briefing is simply indispensable for anyone in the world following China’s financial industry.

Daily, weekly, or monthly – your choice. If you subscribe via this post, you’ll get a special 10% discount for your first subscription to this invaluable, must-have Briefing. And to celebrate its launch, on April 22nd, we’re holding a web clinic about China’s economy hosted by David Schlesinger, a distinguished member of our International Advisory Board and Thomson Reuters’ former Chairman in China and global editor-in-chief. Based in Hong Kong, David is a leading authority and analyst of the Chinese economy. Be sure to contact us for details.