China Everbright Bank latest to base European HQ in Luxembourg
BEIJING - China Everbright Bank has joined other Chinese banks in making Luxembourg its European headquarters, as Europe’s financial centrrs vie to lure Chinese businesses, against the backdrop of uncertainty around Britain's exit from the European Union.
Beijing-based China Everbright Bank announced last week that it has received approval from Luxembourg regulators to set up a subsidiary there.
"China Everbright Bank's Luxembourg expansion fits into the trend of Chinese banks trying to expand into European markets while mitigating themselves against potential Brexit-related risks," said Li Chengrong, a UK-based partner at Zhong Lun Law Firm.
Currently, Chinese banks issuing products through their UK subsidiaries can distribute them to investors in the European Union through the "passporting" rule, but the UK may lose that right post-Brexit, the China Daily reported. www.webershandwick.cn (ATI).