Luxembourg and China strengthen fund industry ties

04 July 2014   Category: News, Asia, China, Global, Europe, Lux   By Derek Au

The Association of the Luxembourg Fund Industry (ALFI) and the Asset Management Association of China (AMAC) have signed a memorandum of understanding (MoU) to strengthen collaboration between the two countries’ fund industries.

The MoU was signed in Beijing by ALFI’s chairman, Marc Saluzzi, and AMAC’s chairman, Sun Jie, on the sidelines of a trip to China led by Luxembourg’s finance minister Pierre Gramegna.

The agreement aims to create mutually beneficial opportunities for the fund industries in both countries. The co-operation will focus on areas including communication, information sharing and member services. The two associations will explore the possibility of implementing joint programmes including meetings, visits and seminars, and to establish mutual assistance as well as exchanges of information relating to regulatory frameworks and investor protection practices. Both organisations will also look for opportunities for mutual membership referral and arrange professional development events for members.

Commenting on the collaboration, Mr. Saluzzi said: “We look forward to exchanging details about our expertise and best practices for the benefit of all our and AMAC’s members. In the future, as Chinese asset managers may wish to extend their activity outside of China, Luxembourg will constitute an ideal gateway into and beyond Europe. Luxembourg is indeed the leading worldwide domicile for cross-border asset management activities.”

Mr. Jie added: “This agreement is a win-win for both industry associations, and is testimony to the growing ties between Luxembourg and China. This collaboration will ensure that the asset management industry in China has world-class standards.”

China has been active in tying up with international counterparts in the hope of expanding its fund management business overseas. At the end of June, AMAC struck an MoU with The Alternative Investment Management Association (AIMA), the association for the global hedge fund industry.

Earlier in April, the China Securities Regulatory Commission (CSRC) and the Jersey Financial Services Commission (JFSC) came to an agreement that will pave the way for allowing Jersey-domiciled funds to participate in the QFII and QDII schemes.

China has also been promoting the use of RMB overseas. The country’s central bank, The People’s Bank of China, recently signed an MoU with its counterparts in France and Luxembourg to establish RMB clearing arrangements in these two countries. This followed similar moves alongside the Bank of England and Germany’s central bank in March.