ICBC seeks to put up Yuan cross-border business hub in Luxembourg

David Nealis President of Ceres Ltd in Switzerland 

ICBC seeks to put up Yuan cross-border business hub in Luxembourg

The Industrial and Commercial Bank of China revealed plans to set up a Yuan cross-border business hub in

Luxembourg that will cover the whole of Europe. Financial Markets Department of ICBC (Europe) Chief Xu Zhi said that in 2012 ICBC (Europe) had a cross-border Yuan trade totaling RMB10.8 Billion (US$ 1.7 Billion), and produced an overall total of RMB 25.9 Billion (US$4.22 Billion) in cross-border deals, according to Chinese State run media.

China banks are expanding into the USA

China banks are expanding into the USA
The Industrial and Commercial Bank of China Ltd, China's largest bank has been approved by the US Federal Reserve to purchase up to 80% of the voting shares of the Bank of East Asia USA which is located in New York City. The Fed also approved an application of the Bank of China, the third largest bank in China, to establish a branch in Chicago and an application by the Agricultural Bank of China, the fourth largest bank in China, to set up a branch in New York City.

 Great short term motivation for these Chinese banks is getting a piece of the Chinese investment happening in the USA right now.  A good example of Chinese investment into the USA right now is in New York’s commercial property industry where Chinese are buying at a rapid pace.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

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