Your Bridge Between Europe and China: Luxembourg

China is changing: since April 2006, its Qualified Domestic Institutional Investors (“QDII”) programme has given domestic investors access to markets outside the country, opening new opportunities for investment funds.

At the same time, Qualified Foreign Institutional Investors (QFII) are offering access to securities markets in China, since they can invest in the country’s restricted renminbi-denominated A-share and domestic bond markets.

Both developments are creating attractive opportunities for Luxembourg, the number-one fund centre in Europe and world leader for cross-border fund distribution. The signature in 2008 of a Memorandum of Understanding between regulators in Luxembourg and China took the process one step further, allowing Chinese institutionals to invest in Luxembourg’s regulated investment vehicles. Given its traditional strengths as a fund domicile, the Grand Duchy is a natural gateway for investment flows into and out of China.

This brochure reviews business opportunities between Luxembourg and China.