JUNE 2019 JUNE BRIDGING FOR SUCCESS: THE LUX SINO RELATIONSHIP A TALE OF TWO HUBS SWISS RE: WHY WE CHOSE LUXEMBOURG PARTNERSHIP IN THE ACADEMIC SPHERE WORK, LIVE & LUXEMBOURG EDITORIAL Dear readers, t gives me great pleasure to share dierent Chinese universities is of utmost with you this new edition of our LEO importance. It helps foster the cultural magazine which is dedicated to one understanding which is so important to of Luxembourg’s true success stories, develop sound business relations. its relationship with China in financial services. We attribute the success of our industry I to people and their individual talents. In the articles featured in this edition, We recently launched the second edition we cover various activities in which of our #MoveToLux campaign aimed Luxembourg has developed a very deep at attracting international talent by and strong relationship with the Middle highlighting the stories of various financial Kingdom. Indeed, we reveal how the services professionals, whom by choosing Finance Ministers of the past 40 years to move to Luxembourg and taking up a have worked to bring Chinese banks to job in finances, demonstrate that you can set up their EU hubs in Luxembourg have both a great career and a fulfilling and how Luxembourg has managed to life. We thus invite you to not only read leverage its role as a leading investment about these professionals’ stories, but fund hub in Europe to help international more importantly, to spend a few minutes asset managers tap China’s capital markets, watching the inspiring videos on our NICOLAS MACKEL, as well as oer Renminbi exposure to our dedicated website (www.movetolux.com). CEO, LUXEMBOURG investor community. Today, Luxembourg FOR FINANCE has a leading market share globally in Dim In our “Why we chose Luxembourg series” Sum bond listings and in investment funds we showcase the strong ties that bind investing in Chinese equities or bonds. Luxembourg to SwissRe. Indeed, like many other Swiss financial institutions, SwissRe This well-established partnership is set up its EU hub in Luxembourg many being further enhanced by developments years ago and continues to develop its EU in the area of sustainable finance and business from the Grand Duchy, including digitalisation. Chinese payment firms chose in the context of Brexit. to set up operations in Luxembourg in order to serve EU clients. The Luxembourg Stock Exchange sets up green bond channels with its counterparts in China to provide investors with information on the Chinese green bond market. These are the trends that point the way to the future. The relationship between our countries is also one between our people and therefore the partnership between the University of Luxembourg (UniLU) and JUNE 2019 LEO | THE FINANCIAL CENTRE’S MAG CONTENT 22 GREEN BOND CHANNEL: A BRIDGE BETWEEN CHINA AND EUROPE Robert Scharfe, CEO of the Luxembourg Stock Exchange, explains the importance 3 NEWS IN BRIEF of the first Green Bond Channel, created Latest facts and figures about in partnership with the Shanghai Stock Luxembourg. Exchange. 4 SWISS RE: WHY WE CHOSE 26 PINGPONG SERVES UP LUXEMBOURG OPPORTUNITIES FOR ITS Lize-Mari Barnes, Chief Financial CUSTOMERS Ocer Luxembourg at Swiss Re Europe PingPong was the first Chinese FinTech SA, explains why the leading provider company to set up a European subsidiary in of reinsurance and insurance chose Luxembourg. Ning Wang, Chief Business Luxembourg to develop its international Ocer at PingPong, gives his views on the activities and long-term strategy. driving forces behind the international and rapidly-growing, venture-backed fintech startup founded in 2015. 8 FOCUS 30 A TALE OF TWO HUBS: THE SINOLUX INVESTMENT CASE BRIDGING FOR Leading brands from the worlds of banking, logistics and industrials give their SUCCESS: THE LUX views on the appeal behind major Chinese investments into Luxembourg, and what SINO RELATIONSHIP the future might hold… 34 AIIB: THE POWER OF COLLABORATION A look back at the achievements of the Asian Infrastructure Investment Bank (AIIB), three years after its establishment. 37 CHINA AND LUXEMBOURG: CLOSE PARTNERS The Chairmen of Luxembourg industry associations discuss the importance of China to their business. 42 INFOGRAPHICS 10 CHINESE BANKS GO WEST Connecting global investors with China BUILDING BRIDGES TO EUROPE Pierre Gramegna, Luxembourg 44 LIFESTYLE Finance Minister and three of his Partnership in the academic sphere predecessors take a look back at how the China-Luxembourg relationship was 48 WORK, LIVE & LUXEMBOURG: established. BALANCE A GREAT CAREER IN FINANCE WITH YOUR LIFE 15 CHINA: THE NEW FRONTIER FOR Luxembourg oers a work-life balance FOREIGN ASSET MANAGERS that is dicult to find anywhere else in the Leading asset managers worldwide world. explains the importance of China to their business and what makes 56 UPCOMING EVENTS Luxembourg a leading domicile when it comes to international funds investing ANY QUESTIONS? in China. GET IN TOUCH ON TWITTER @LUXFINANCE LEO | THE FINANCIAL CENTRE’S MAG JUNE 2019 NEWS IN BRIEF 3 COST OF LIVING ST The Economist 1 Intelligence Unit ranks LUXEMBOURG CITY HAS the cost of living in BEEN NAMED THE SAFEST Luxembourg at the 60th position worldwide, CITY IN THE WORLD IN A making it significantly QUALITY OF LIFE RANKING less expensive than BY CONSULTANTS, MERCER. other European financial centers such as Paris (1), Frankfurt (16) and London (22). JUPITER BRINGS EUROPEAN BRANCHES UNDER LUXEMBOURG ARM JUPITER ASSET MANAGEMENT HAS BROUGHT ITS SIX EUROPEAN BRANCH OFFICES UNDER THE ROOF OF ITS LUXEMBOURGDOMICILED ENTITY TO PROTECT ITS CONTINENTAL EUROPEAN BUSINESS AGAINST A NEGATIVE FALLOUT FROM BREXIT. NORTHERN TRUST ESTABLISHES EU BANK IN LUXEMBOURG Northern Trust announced that it has established PPRO GRANTED its EU bank in Luxembourg. The announcement EMONEY LICENCE AHEAD OF BREXIT follows the company’s 2017 acquisition of the PPRO, A CROSSBORDER fund administration servicing units of UBS Asset PAYMENT SPECIALIST, HAS BEEN Management in Switzerland and Luxembourg. GRANTED AN EMONEY LICENCE Today, Northern Trust is a top 10 fund administrator TO OPERATE IN LUXEMBOURG AHEAD OF BRITAIN’S DEPARTURE in Luxembourg. FROM THE EUROPEAN UNION. JUNE 2019 LEO | THE FINANCIAL CENTRE’S MAG 4 WHY WE CHOSE LUXEMBOURG LIZE MARI BARNES CHIEF FINANCIAL OFFICER LUXEMBOURG, SWISS RE LEO | THE FINANCIAL CENTRE’S MAG JUNE 2019 WHY WE CHOSE LUXEMBOURG 5 SWISS RE: WHY WE CHOSE LUXEMBOURG SWISS RE HAS A STRONG PRESENCE IN EUROPE AND IS THE WORLD’S SECOND LARGEST REINSURANCE COMPANY. ESTABLISHED IN LUX EMBOURG IN 2007, IT IS HOME TO ITS EUROPEAN ECONOMIC AREA EEA HEAD OFFICE, FROM WHERE SWISS RE CO ORDINATES ITS REGIONAL BRANCH NETWORK. THE GLOBAL INSURER HAS MORE RECENTLY STARTED A NEW CAPITAL MARKETS UNIT IN LUXEMBOURG TO MAINTAIN ACCESS TO THE EU SINGLE MARKET AFTER BREXIT. WE SAT DOWN WITH LIZE MARI BARNES, CHIEF FINANCIAL OFFICER LUXEMBOURG, TO FIND OUT HOW THE BUSINESS IS DEVELOPING. LFF: WHAT ARE THE REASONS FOR LFF: WHAT ARE YOUR ACTIVITIES IN CHOOSING LUXEMBOURG FOR YOUR EU LUXEMBOURG? HUB? LMB: Within Swiss Re we have three dier- LMB: We used to have local companies in a ent business units: Reinsurance, Corporate “The open business number of European countries and came Solutions and Life Capital. Each of these to the conclusion that having a base in one business units have their main European culture and fluent place would be much more ecient. EU Legal Entity based in Luxembourg. In to- language skills made regulation and the Freedom of Establish- tal we have five Re (Insurance) carriers that ment allows us to work from a single base. are supervised by the Insurance regulator, Luxembourg a natural The open business culture and fluent lan- CAA. In addition to that, Swiss Re has var- choice.” guage skills made Luxembourg a natural ious other Treasury and Financing compa- choice. Luxembourg was not new to Swiss nies in Luxembourg as well as companies LIZE MARI BARNES Re as we already had a small presence es- regulated by the CSSF. tablished in Luxembourg. We moved to Luxembourg with our first carriers in 2007. LFF: HOW ARE YOUR ACTIVITIES EVOLV The European market contributes approx- ING? imately one third of the Group’s activities and Luxembourg is home to its EEA head LMB: We have implemented significant oce. changes to Swiss Re’s risk portfolio over JUNE 2019 LEO | THE FINANCIAL CENTRE’S MAG 6 WHY WE CHOSE LUXEMBOURG recent years and have continually adapted to be used when they work on developing the portfolio in line with current market solutions for our clients. developments based on our continuous and consistent monitoring of capital al- LFF: IN LUXEMBOURG, HOW DO YOU location. Swiss Re continues to explore WORK ALONGSIDE THE INSURANCE new risk pools and new opportunities, in REGULATOR? line with our purpose “to make the world more resilient” which leads to the need LMB: Having a separate Insurance regula- for new ventures, new entities and capi- tor has been hugely beneficial for us. Due tal allocation accordingly. Luxembourg to the in-depth knowledge and expertise plays an important on both sides, as well role in implementing as accessibility of the Swiss Re’s strategic “Luxembourg plays Regulator, it allows for decision-making at a an important role in very strong interaction European level. For and communication example, our B2B2C implementing Swiss Re’s on various industry risk-tech entity iptiQ strategic decision-making and company specific is headquartered in at a European level.” topics. These topics Luxembourg. Lux- are often very complex embourg is at the which emphasises the forefront of certain geopolitical develop- value of a dedicated regulator. This was an ments, such as Brexit. Our Luxembourg important dierentiating factor when Swiss entities operate with branches in the UK Re considered the location of its European and Swiss Re is actively engaging with headquarters some years ago and continues various stakeholders and regulators on to be a dierentiating factor.