MEMORANDUM OF UNDERSTANDING
Luxembourg Stock Exchange tightens cooperation with China
A Memorandum of Understanding (MoU) seals a strategic partnership between the Luxembourg Stock Exchange (LuxSE) and the Chinese Bank of Communications (BoCom).
In the MoU, both parties commit to exchanging information about listing and trading activities of securities issued by Chinese entities. A particular focus is put on securities denominated in RMB, domiciled in the Shanghai Free Trade Zone. “Chinese actors are already seeing Luxembourg as their gateway to Europe. I believe this agreement will further strengthen the prolific relations between Luxembourg and China,” commented Robert Scharfe, CEO of LuxSE.
The MoU focuses on sharing information about listing and trading of bonds and equities; asset securitization; and private equity activity of Chinese entities. Furthermore, the organisations commit to cooperating on the innovation and creation of new listing and trading products, as well as any other form of business that could be of mutual interest for the Bank of Communications or the Luxembourg Stock Exchange. Both parties will also exchange knowledge on best practices for the markets they operate in.
Robert Scharfe added: “The signing of the MoU highlights the willingness of BoCom and LuxSE to deepen cooperation in financial markets. A special focus is put on accelerating the process of RMB internationalisation.”
LuxSE listed Europe’s first offshore RMB bond from a non-Chinese issuer, or Dim Sum bond, in 2011. Today, with 90 Dim Sum bonds listed for issuers from 23 countries, it is the number one listing venue for these bonds in Europe.
About the Luxembourg Stock Exchange (LuxSE)
2 markets, 3,000 issuers, 40,000 securities
The Luxembourg Stock Exchange (LuxSE) is the gateway to access international investors. With 40,000 listed securities, including some 26,000 bonds, from 3,000 issuers in 100 countries, LuxSE is the world’s number one exchange for the listing of international securities and offers a unique full service throughout listing, trading and reporting.
LuxSE operates two markets: an EU regulated market (“Bourse de Luxembourg”) and an exchange-regulated market (“Euro MTF”). All securities are tradable on Euronext’s UTP platform.
LuxSE also operates a specialist subsidiary, Fundsquare, which provides services to substantially support and standardize cross-border distribution of investment funds.
The first exchange to go green
In 2007, LuxSE became the first exchange in the world to list a Green Bond – issued by the European Investment Bank (EIB) to finance part of its climate projects. A number of issuers have since listed, and earlier this year LuxSE marked its 100th listed green bond. The value of all Green Bonds on LuxSE has surpassed $45 billion. Green listings on LuxSE represent the highest number of listed green bond offering globally (September 2016).
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