bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

SCMP Reporter

Hong Kong's banking links with Luxembourg were strengthened this week when a locally-based bank became the first to open a branch in the Grand Duchy.

It was the first overseas subsidiary to be opened in 20 years by Chekiang First Bank, headed by the honorary consul for Luxembourg, James Z. M. Kung.

Luxembourg Prime Minister Jean-Claude Juncker and the Grand Duchy's royal family are to be invited to the official opening in September.

Although the Bank of China and Hong Kong & Shanghai Banking Corporation (HSBC) were in Luxembourg, neither could be classified as a 'local' Hong Kong bank, Dr Kung said.

'The Bank of China is based in Beijing and HSBC is a global institution, headquartered in Bermuda,' he said.

'We are the first local commercial bank with exposure in Luxembourg.' Chekiang First Bank, with 15 branches in Hong Kong, has only one other overseas subsidiary - a branch in San Francisco.

The Luxembourg branch of the bank, owned by Dai-Ichi Kangyo Bank of Japan, will be primarily concerned with offshore deposits.

'Recently, we have had quite a number of customers seeking somewhere to place offshore deposits,' Dr Kung said.

He said the service was aimed at clients with 'a high net worth, from US$100,000 upwards'.

As honorary consul, Dr Kung regards 'building financial bridges' between Hong Kong and Luxembourg as part of his mission.

'The two economies have many things in common,' he said.

 'Both are service-oriented financial centres.' Apart from accepting offshore deposits, the Luxembourg branch of Chekiang First Bank will be able to arrange company listings and syndicated loans.

It is also positioned to offer Hong Kong banking services to Luxembourg businesses exploring opportunities in Asia.

Though a relatively small Hong Kong institution, the bank boasts a bigger reputation than its size suggests.

The US-based rating agency, Thompson Bank Watch, last year ranked it among the top 25 most credit-worthy in a survey of 300 banks in 16 Asian countries, excluding Japan.

The survey also rated the bank, which announced a 15.38 per cent increase in profits last year to US$420 million, as the 17th best performer.

'We had top ratings in all the major categories,' Dr Kung said.

Another notable development was the opening of the bank's first corporate banking centre in Mongkok, Dr Kung said.

In the meantime, the bank is committed to the long-term economic and social development of Hong Kong by supporting cultural, charitable and educational causes.

'We have been a regular sponsor of the Hong Kong Awards for Industries,' Dr Kung said .

'Our emphasis on education and training prompted the establishment of scholarships to outstanding students of the Chung Chi College to the Chinese University of Hong Kong.

'On the health and medical front, we sponsor the Corporate Games. We also contribute to the Hong Kong Liver Foundation.' On the cultural front, the bank supports the Hong Kong Arts Festival, Asian Youth Orchestra and Hong Kong Ballet.

Other beneficiaries include the Girl Guides' Association, Chinese Young Men's Christian Association, World Wide Fund for Nature, Summer Youth Programme, the Community Chest and the Tung Wah Group of Hospitals.

Dr Kung also has 18 voluntary jobs apart from his diplomatic role for Luxembourg. He was awarded the Order of the British Empire for his charity work.



Which stocks will Hang Seng Bank shareholders consider with their US$14 billion windfall?

Record yuan loan to Australian miner makes good sense

China’s push to promote its currency accelerates with landmark Fortescue loan

China grants Hong Kong new yuan quota as Payment Connect kicks off for 315 million users

Bank of China (BOC)

HK-based bank opens branch in Grand Duchy