RQFII quota granted to Luxembourg
The People’s Bank of China has announced the granting of a RMB 50bn (€7.33bn) RQFII (RMB Qualified Foreign Institutional Investor) quota to Luxembourg.
The RQFII scheme was launched in Hong Kong in 2011 and has been expanded to other jurisdictions since 2013 enabling offshore RMB to be reinvested into the Mainland securities market.
Luxembourg Minister of Finance, Pierre Gramegna,comments on the agreement: “The granting of the RQFII quota again demonstrates China’s recognition of the Luxembourg financial centre as one of Europe’s main hubs for international renminbi business. We are proud to play such a significant role in the process of the internationalisation of the renminbi.”
The agreement follows the designation of the Industrial and Commerical Bank of China as RMB clearing bank in Luxembourg at the end of 2014.