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Luxemburg eyes becoming offshore yuan market
By Feng Jianmin |
October 21, 2011, Friday
|
Online Edition
Online Edition
LUXEMBURG is "very interested" in becoming an offshore yuan market and expects that more Chinese funds will be settled overseas along with the wider usage of the Chinese currency.
"The whole world is interested in investing in China, and if we can become an offshore yuan market as Hong Kong, the financial exchange between Luxemburg and China will be greatly boosted," said Marc Saluzzi, chairman of the Association of the Luxembourg Fund Industry.
He said there were currently three Chinese cross-border funds settled in Luxemburg, and expected that the sector would grow significantly faster in the next five to ten years.
Bank of China and Industrial and Commercial Bank of China have already established businesses in Luxemburg, offering yuan-account operations. Three banks from Chongqing, Beijing and Shanghai had also expressed interest in overseas expansion, according to Jeannot Krecke, Minister of the Economy and Foreign Trade of Luxemburg.
A total of 700 billion yuan is accumulated on offshore yuan markets, mainly Hong Kong, while only 140 billion yuan in dim-sum bonds, or yuan-denominated bonds, has been issued in Hong Kong.
Francois Guilloux, a researcher with Z-Ben Advisors, said he expected the accumulation of yuan would rise to 1 trillion yuan in offshore markets by the end of next quarter.
There are only 15 fund management companies that have established entities in Hong Kong, but Guilloux said he expected more funds would go overseas, as "China will surely add more channels for yuan-backed investment in the next three to five years."
"The whole world is interested in investing in China, and if we can become an offshore yuan market as Hong Kong, the financial exchange between Luxemburg and China will be greatly boosted," said Marc Saluzzi, chairman of the Association of the Luxembourg Fund Industry.
He said there were currently three Chinese cross-border funds settled in Luxemburg, and expected that the sector would grow significantly faster in the next five to ten years.
Bank of China and Industrial and Commercial Bank of China have already established businesses in Luxemburg, offering yuan-account operations. Three banks from Chongqing, Beijing and Shanghai had also expressed interest in overseas expansion, according to Jeannot Krecke, Minister of the Economy and Foreign Trade of Luxemburg.
A total of 700 billion yuan is accumulated on offshore yuan markets, mainly Hong Kong, while only 140 billion yuan in dim-sum bonds, or yuan-denominated bonds, has been issued in Hong Kong.
Francois Guilloux, a researcher with Z-Ben Advisors, said he expected the accumulation of yuan would rise to 1 trillion yuan in offshore markets by the end of next quarter.
There are only 15 fund management companies that have established entities in Hong Kong, but Guilloux said he expected more funds would go overseas, as "China will surely add more channels for yuan-backed investment in the next three to five years."
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