China Grants RMB 50 Billion Quota to Luxembourg Funds

The Chinese central bank has granted a RMB 50 billion ($8 billion) quota for Luxembourg funds to invest in the RMB Qualified Foreign Institutional Investor (RQFII) scheme.

The quota will allow Luxembourg’s European and global investor base to use the scheme to directly invest into the domestic Chinese capital market.

“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,” says Pierre Gramegna, Luxembourg Minister of Finance.

The quota is the second largest for a European country, after France, Germany and the U.K. were granted a RMB 80 billion quota in 2014.

As well as Luxembourg, Switzerland was granted a RMB 50 billion quota in January 2015.