Luxembourgish Finance Minister, Pierre Gramegna, and the new Ambassador for the People's Republic of China (PRC) in Luxembourg, Huang Chanqing, met today to discuss cooperation between the two countries and the potential strengthening of bilateral relations in this area.
Both powers are able to significantly benefit from the other, with Luxembourg representing one of the main European centres for business in the Chinese currency of renminbi (RMB) and hosting the European headquarters of six major Chinese banks.
Equally, the Chinese market is a vital factor in Luxembourg's strategy for the diversification of its financial centre and more than half of investment funds authorised in Hong Kong are from Luxembourg. Luxembourg also provides Chinese banks with an access point into devlopment within the European market.
Luxembourg represents the first European centre regarding payments, deposits and loans and investment funds in RMB and the Dim Sum listing of bonds. At the end of 2014, the introduction of compensation services in RMB reinforced this position on the international scene. During the year 2015, Luxembourg obtained a 'Renminbi Qualified Foreign Institutional Investors' (RQFII) 50 Mia quota, which further boosted the import of Luxembourg's role in the internationalisation of the Chinese currency.
Photo by Ministry of Finance (L-R: Ambassador for the People's Republic of China (PRC) in Luxembourg, Huang Chanqing ; Finance Minister, Pierre Gramegna)
