International leaders from government and industry gathered today in Luxembourg for the third edition of the Renminbi Forum to discuss the internationalisation of the Chinese currency.
The conference was opened by Pierre Gramegna, Luxembourg’s Minister of Finance, and Dr. Zhang Xuechun, Chief Representative of the Frankfurt Representative Office of the People’s Bank of China. It was attended by 33 speakers and more than 400 experts and practitioners.
The Forum provided a platform to answer questions arising from the internationalisation of the RMB and addressed China’s efforts at market reform in today’s challenging environment.
The second part of the Forum was dedicated to discussing the different ways of accessing the Chinese financial market. Participants focused on Stock Connect, which is playing an increasingly important role in the internationalisation of the Renminbi. Further links can be expected in the second half of 2016.
In light of growing Chinese outward FDI, this year’s Forum also touched on Chinese investors’ options for investing abroad, and how these investors can best be served. The Forum ended with a discussion of European corporates and their appetite for tapping into the Renminbi pool.
Pierre Gramegna, Luxembourg’s Minister of Finance, stated: “In November last year, the yuan was added to the IMF Special Drawing Rights basket, signalling its arrival as an official reserve currency. The financial community now needs to gain experience of investing into China – and vice versa. As a gateway for non-European investors to the European Union and a preferred continental hub for Chinese banks, Luxembourg is fully committed to work with China and contribute to economic growth, creating a mutual understanding with a long-lasting effect.”
Facts and figures
• Six Chinese banks are using their Luxembourg hub for cross-border RMB activities throughout Europe
• Luxembourg funds account for 28% of global assets and 69% of European assets invested in Mainland China.
• Luxembourg is the largest listing centre for Dim Sum bonds outside Asia. The number of Dim Sum bonds listed on LuxSE has almost tripled in less than four years time.