Jan Willem Möller of Loyens & Loeff
analyses why the country is emerging as the
eurozone’s hub for dim sum bonds
In line with the growing importance of the Chinese yuan or
renminbi (RMB) as a global currency, the investor-base of
offshore RMB denominated bonds is becoming increasingly
international. While Hong Kong continues to be the undisputed
leader in the race to become an offshore RMB hub, the likes of
Singapore, Taipei and London are also attracting RMB business.
Luxembourg is emerging as a leading platform for the issuance
and listing of so-called dim sum bonds in the eurozone.
Luxembourg is an interesting option for companies searching
for alternative RMB funding, while giving eurozone investors a
chance to diversify their risk exposure. The dim sum bonds
listed in Luxembourg today, combined with recent initiatives in
both the public and the private domain to support the growth of
RMB business, are...