Luxembourg and France face-off in race to be euro zone yuan hub
Currently No 3 dim sum bond listing venue globally, Luxembourg faces competition from France which plans a large bond sale in first quarter
Luxembourg and France are racing to be the first to sell a euro zone sovereign dim sum bond, the key step in staking a claim as the single currency bloc's offshore yuan hub.
Sovereign issuance is regarded by international investors as the crucial benchmark for developing a liquid market in foreign currency instruments.
The French Consul General in Hong Kong, Arnaud Barthelemy, told the that Paris would make its sovereign dim sum debut in the first quarter of this year.
He said the state agency responsible for the French social security fund, Caisse d'Amortissement de la Dette Sociale, would make a "significant" dim sum bond sale in the first quarter, though he declined to disclose the exact size.
"We want the French government and corporates to do more, both from a trade and finance perspective when it comes to [yuan]," Barthelemy said.
Separately, Nicolas Mackel, chief executive at Luxembourg for Finance, the government-backed entity promoting the country as a financial centre, said his government also planned to issue sovereign dim sum debt.
Luxembourg is home to the European headquarters of six Chinese banks, including ICBC and China Construction Bank. Its finance minister, Pierre Gramegna, heads to Beijing this week for talks with financial officials.
