Luxembourg Stock Exchange Signs MoU With Bank Of China
Luxembourg Stock Exchange on 19 June signed a memorandum of understanding (MoU) with Bank of China that involves the creation of a strategic partnership between the two companies.
According to the MoU, Luxembourg Stock Exchange and Bank of China intend to cooperate in the listing of a wide range of securities. They also aim to promote Luxembourg as the ideal venue for international listings and to develop financial activities related to the internationalization of the Chinese renminbi (RMB).
Concrete actions have already been carried out by Luxembourg Stock Exchange and Bank of China in order to foster RMB business in Luxembourg. In May this year, Bank of China was the first mainland Chinese company to issue an RMB bond in the Eurozone. Its RMB “Schengen bond” was listed on the Euro MTF market of the Luxembourg Stock Exchange and has strengthened the position of Luxembourg Stock Exchange for the listing of offshore RMB bonds.
Luxembourg Stock Exchange listed Europe’s first offshore RMB bond from a non-Chinese issuer, or Dim Sum bond, in 2011. Today, with 43 Dim Sum bonds listed for issuers from 20 countries, it is the number one listing venue for these bonds in Europe.
The signing of this MoU underlines the expertise and capacity of Luxembourg Stock Exchange and the Luxembourg financial sector for providing a platform for international RMB business.