China Construction Bank opens branch office in Luxembourg

China Construction Bank (CCB). one of the country's four largest state-owned banks, on Tuesday inaugurated its first branch office in Luxembourg and the CCB (Europe) Corporation.

CCB board chairman Wang Hongzhang said the CCB was attracted by Luxembourg's good location, its good financial environment, the effective government, the prudent supervision and an open attitude towards the Chinese banking sector.

He noted that the speed with which the CCB acquired authorization from the Luxembourg government was the fastest since the beginning of the internationalization of CCB businesses.

The CCB will provide corporate finance and capital market services for companies that wish to accelerate their international businesses and European transnational companies that have trade relations with the CCB in China.

According to Wang, Luxembourg would be a platform for CCB to expand its businesses across Europe, particularly regarding loans and credits, international settlements and offshore services of the Chinese currency renminbi (RMB).

Luxembourg Finance Minister Luc Frieden, for his part, stressed that the CCB Luxembourg was a symbol of trust and cooperation between Luxembourg and China in political, diplomatic and economic fields.

He also voiced support from the Luxembourg government for future development of the RMB offshore services in Luxembourg.

Previously, two major Chinese banks, namely the Bank of China (BOC) and the Industrial and Commercial Bank of China (ICBC). have already opened offices in Luxembourg.

At present, the CCB has 17 branches or subsidiaries in 15 countries and regions, with assets totaling 120 billion U.S. dollars.