OREANDA-NEWS.  July 08, 2013. ICBC hosted a seminar "Cooperation and Opportunity" in Luxembourg to present offshore RMB services. Special guests at the seminar included Luxembourg's Finance Minister Luc Frieden, Chinese Ambassador to Luxembourg Zeng Xianqi and ICBC Chairman Jiang Jianqing.

This is the first time for ICBC to organize a large-scale event in Luxembourg to promote offshore RMB services, marking a new milestone for offshore RMB market in Europe. The aggressive marketing of ICBC and other Chinese commercial banks on RMB services in Luxembourg and Europe makes Luxembourg a good location for an offshore RMB center.

Being the largest RMB bank in the world, ICBC will leverage its strong RMB capital and global network to fully support Luxembourg to become an offshore RMB center, said an executive of the Bank. Luxembourg, as a regional headquarter, will be the hub for ICBC branches in Europe to promote RMB services. By focusing consistently on innovation, a full spectrum of RMB products and services will be delivered through the integration of global market operations and corporate banking products.

ICBC has laid a good foundation in pushing forward RMB services across Europe. Headquartered in Luxembourg, ICBC Europe operates a network which covers major European cities, including Paris, Amsterdam, Brussels, Milan, Madrid, Barcelona, Warsaw and Lisbon. Since its inception, ICBC Europe, while targeting at attracting local customers, also offers a full range of financial services for Chinese companies operating their business in Europe, backed by the support of ICBC Group and its unique geographical proximity. With strong competitive advantage and sustainable growth, ICBC Europe registered the fastest growth among Chinese commercial banks in the region.

The offshore RMB services provided by ICBC Europe cover RMB deposit/loan, RMB settlement, currency exchange, FX guarantee, international trade financing, buying and selling of RMB, and so on. In 2012, ICBC Europe provided loans for cross-border trades in RMB totaling RMB 10.82 billion and involved in cross-border transactions totaling RMB 25.957 billion. During the first four months of this year, ICBC Europe achieved a stronger growth in its RMB business, recording RMB 17.536 billion on the cross-border trade financing and RMB 16.41 billion on cross-border renminbi settlements, representing a substantial surge from the same period a year ago.

ICBC Europe is the first European bank entitled to China interbank bond market under the approval of People's Bank of China. As of today, ICBC Europe has invested RMB 1.215 billion in RMB bonds via Chinese interbank bond market. At the same time, ICBC Europe also provides services for large multinational corporations in Europe to issue RMB dim sum bonds. On March 26 this year, ICBC Europe helped Renault, a French company, to issue dim sum bonds of RMB 750 million through ICBC Asia in Hong Kong, which in turn expanded ICBC’s visibility in Europe's RMB market.

Endowed with advanced economic, legal and regulatory system, as well as efficient financial system, Luxembourg claims the eighth largest financial center and the second largest fund management center - only second to the U.S. - in the world. Luxembourg government and local financial associations are optimistic about renminbi's prospect of becoming a global currency. Furthermore, Luxembourg acts as an ideal offshore renminbi destination in Europe since much of the trades and investments between China and Europe were carried out through Luxembourg during the last few years. RMB business in Luxembourg posted an impressive growth in recent years. Up to January this year, Luxembourg has RMB 20 billion of deposits (the largest in the euro zone), RMB 30 billion of loans and RMB 200 billion of renminbi assets managed by fund houses in Luxembourg.

In recent years, ICBC has been dedicated to expanding RMB services across border. ICBC sits on top of the global ranking in terms of total RMB assets and settlement volume. Supported by strong RMB capital position, ICBC ensures greater access to customers. In IT support, ICBC is the first commercial bank in China to centralize process of all transactions at home and abroad. The real-time clearing system for transfer, settlement, clearing and the centralized clearing in local and foreign currencies connect ICBC outlets into a global network, enabling real-time transfer of funds, and fast and highly efficient settlement services for customers.

By the end of March this year, ICBC had established about 400 branches in 39 countries and territories and had better access to financial markets in 18 African countries as the largest single shareholder of South Africa's Standard Bank, thus forming a well-developed global financial service network. Since the launch of the pilot operations for RMB cross-border settlements in 2009, ICBC has been focusing on promoting the use of RMB in cross-border trades backed by a global clearing network spanning nearly 70 countries and territories. The turnover exceeds RMB 3 trillion, with a growth rate higher than the average nationwide. On February 8 this year, People's Bank of China approved ICBC Singapore Branch as the renminbi clearing bank in Singapore, the first such bank designated by the central bank in countries other than China, a significant milestone in the process of RMB internationalization.