Chinese banks to expand presence in Luxembourg

China Everbright Bank and Shanghai Pudong Development Bank have confirmed their intention to set up branches in Luxembourg.

If approved by regulators in both China and Luxembourg, this would bring the total number of Chinese banks in Luxembourg to eight, Luxembourg's finance minister Pierre Gramegna said during a visit to Shanghai this week.

Four memoranda of understanding and one agreement were signed during the visit, including an MOU between the Shanghai Financial Association and Luxembourg for Finance setting out a framework for exchange of information on banking, financial services and securities regulation, as well as the organization of training courses, sources said.

Earlier this week, PingPong, a fast-growing Chinese fintech company, announced that it had applied for a payment institution license in Luxembourg.

PingPong offers a new, secure way for China's B2C and B2B sellers to receive online payments from overseas. If the license is granted, PingPong will use Luxembourg as its hub in the EU.

Luxembourg shares China's strong commitment to green financing. "Four green bonds have been issued by the Bank of China and listed on the Luxembourg Stock Exchange," said Gramegna, the first issued by a Chinese financial institution in continental Europe. Endi