Luxembourg to welcome 2 more Chinese banks

Two further Chinese banks have announced plans to open branches in Luxembourg as a result of negotiations during a recent economic mission.

Finance Minister Pierre Gramegna and Hereditary Grand Duke Guillaume were part of a Luxembourg delegation in China from October 24 and 28, 2016.

At the end of last week it was revealed that talks with banks China Everbright Bank (CEB) and Shanghai Pudon Development bank (SPDB) bore fruit.

“We have succeeded in establishing Luxembourg as the gateway for the Chinese financial industry in Europe,” Gramegna said, adding: “The six most important banks are already here and two more, CEB and SPDB, are now starting the necessary procedures.”

The move will bring the number of Chinese banks in Luxembourg to eight. The six existing banks are the Bank of Communications, the China Merchants Bank, the Agricultural Bank of China, the Bank of China, the Industrial and Commercial Bank of China and China Construction Bank.

The banks were not the only parties to show an interest in establishing a Luxembourg base.

The CEO of Chinese fintech firm Ping Pong, Robert Chen, said he will apply for the necessary permissions from Luxembourg’s financial supervisory body to establish a European office in Luxembourg. Ping Pong operates in the field of electronic payments.