The cooperation between Luxembourg and China has recently been improved, as the representatives of the two states signed several agreements which will develop the financial sector for both countries. Persons interested in opening an investment fund in Luxembourg can benefit from the effects of the cooperation agreements signed by the two states. Our team of financial experts can provide more details related to the legal framework applicable to investments in the financial industry.
Agreements signed between Luxembourg and China
The representatives of China and Luxembourg signed four Memoranda of Understanding and a cooperation agreement. Their main purpose is to strengthen and to further develop the relations established between the two states on investment matters.
The two states signed the following agreements:
• Memorandum of Understanding which will establish a legal framework applicable for the legislation regulating the banking industry, financial services and securities. The document will strengthen the exchange of information between Shanghai Financial Association and Luxembourg for Finance;
• Memorandum of Understanding for mutual cooperation in the field of insurance;
• Memorandum of Understanding for the establishment of a legal framework between Bank of Communications and Luxembourg Stock Exchange;
• Memorandum of Understanding related to the financial markets of the two countries;
• Agreement between two universities in China and Luxembourg.
At the moment, two major banks in China have already expressed their wish to enter the European market by establishing a business presence in Luxembourg. If so, the total number of Chinese banks operating in Luxembourg will increase to eight entities. Our team of financial consultants can provide more details on the banking system, as well as on other structures, such as private equity in Luxembourg.
Chinese presence in Luxembourg
It is important to know that one of the most representative economic sectors in Luxembourg is represented by financial services. Luxembourg is interested in becoming a fintech centre in Europe and, in this sense, we mention that a Chinese company operating in this field is interested in carrying business activities in Luxembourg. Its main activity refers to the usage of e-commerce platforms for on-line payments.
Those who want to open an investment fund in Luxembourg should also know that the state is a top economy in terms of green securities. At the moment, Luxembourg has more than 110 green bonds, which represent more than 50% of all green securities registered at a global level.
Investors can also set up a SICAV structure, which is a type of company with variable capital, which can be set up as a Luxembourg investment fund.
Businessmen interested in finding out more details on the cooperation agreements available here are invited to contact our team of financial representatives.