Two proposed bank licences and four new agreements are among the fruits of Luxembourg's latest charm offensive in China.
China Everbright Bank and Shanghai Pudong Development Bank are planning to set up a presence in Luxembourg, according to Luxembourg For Finance, a trade agency. If their applications are approved, it will increase the number of Chinese banks in Luxembourg to eight.
Meanwhile, a delegation to China led by the crown prince of Luxembourg has secured memoranda of understanding between Luxembourg entities and the Shanghai Financial Association, Insurance Association of China, Bank of Communications and others.
"This year's mission reaffirms Luxembourg's commitment to a close cooperation with China," says the agency in a statement.
Like other financial centres, Luxembourg is keen to solidify its ties to China to ensure Chinese capital continues to flow there.
Luxembourg funds already account for more than two-thirds of European assets invested in mainland China, according to the agency's figures. The country is also the largest listing centre for offshore renminbi bonds, or dim sum bonds, outside Asia.
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