Auspicious news marked the formal re-launch of the China-Luxembourg Chamber of Commerce Luxembourg, or Chinalux, this week.

On Wednesday, the Grand Duchy’s investment fund industry group, Alfi, reported that Luxembourg financial regulator CSSF had approved a Ucits mutual fund solely dedicated to investments in mainland China-listed firms. (The Ucits is still subject to China’s foreign investment rules, Alfi noted in its press announcement.)

Indeed, Chinalux hosted a conference that same evening on the “internationalization of the RMB and related challenges and opportunities for Luxembourg”, with transactions involving China’s currency already a notable market for Luxembourg.

As of June 30, it already represented more than 220 billion yuan (about €27 billion) in assets under management in Grand Duchy investment funds, as well as roughly 56 billion yuan in bank deposits and 67 billion yuan in loans, according to Luxembourg for Finance, an official agency. During the conference, that organisation’s CEO, Nicolas Mackel, said 60% of all investments from China into Europe come via Luxembourg.

Still, the “marketing of Luxembourg is important for the future”, Mikkel Stroerup, executive director of Chinalux, told Delano following the event. “We have the numbers already: even bonds issued in London are to a large extent settled in Luxembourg. Let’s get the message out. And three big Chinese banks [already established in the Grand Duchy] and more coming should help in this process.”

Chinalux re-launch

Wednesday evening equally marked the chamber’s official revamp.

A China-Luxembourg chamber was originally founded more than a decade ago, but the new Chinalux--formed this spring--represents a fresh management and structure. China’s ambassador to Luxembourg, Zeng Xianqi, is now honorary president.

“The new China-Luxembourg Chamber of Commerce will be an excellent platform to network, to enhance cultural exchange and to tie the bonds between the two economies,” Chinalux president and Deloitte partner Dirk Dewitte said in the chamber’s official announcement.

More than 150 people attended this week’s event, which was held at Banque Internationale à Luxembourg’s route d’Esch headquarters.