Reflecting on the 2024 Lunar Year
To help us ring in this Lunar New Year, let’s take a look back at all that LuxSE achieved in the Asia-Pacific region in 2024, and the people and partners that made it possible.
In this report, ICMA found that LuxSE was the leading non-Asian listing venue for bonds issued by Asian issuers in 2023 – drawing 20% of total listing values.
“For almost 40 years, our exchange has placed a strategic importance in facilitating the opening up of capital markets in Asia. What started off as a focus on Chinese capital markets specifically has flustered into partnerships and listings originating throughout the Asia-Pacific region, and this report’s findings reflect our teams’ ongoing efforts across the region, further emphasise Luxembourg’s prominent role as an international bond listing hub,” said LuxSE’s Regional Head of Asia-Pacific Fang Zhang, when we sat down to reflect on 2024 with her.
In April, we welcomed the first panda bond to our exchange - a CNY 3 billion bond issued by the Asian Infrastructure Investment Bank (AIIB).
To mark this next important step in the opening up of China's onshore bond market, we sat down with Darren Stipe, Head of Funding at AIIB to learn more about panda bonds and the bank's 4 years of activity in the market.
“The growth in panda bond issuance volume reflects the increasing demand and depth of the market. From our conversations with global investors, one trend that is definitely worth highlighting is that more of them are managing CNY now. More central banks and asset managers are investing in China’s bond market and benefiting from ample liquidity and decorrelation from other major bond markets,” said Mr Stipe in a special interview we did to mark the issuance.
Just 2 days shy of Luxembourg’s National Day, as part of an official visit by a high-level delegation from the Chinese province of Henan and its aviation industry to the Grand Duchy, we welcomed Henan Civil Aviation Development & Investment Co. Ltd (HNCA) to our exchange for a special Ring the Bell ceremony to mark HNCA’s debut in international capital markets – a listing that also made it the first Chinese entity to issue a green bond focusing on sustainable aviation fuel among other key sustainable projects.
“Sustainable Aviation Fuel can and must play an important role in creating a more low-carbon tomorrow. It has the potential to reduce carbon emissions by up to 80% over its lifecycle when compared to traditional fuels. And as a leader in the field of sustainable finance, on behalf of the Luxembourg Stock Exchange, I would like to applaud HNCA for its commitment to developing and mainstreaming this important innovation,” said LuxSE’s CEO Julie Becker during the Ring the Bell ceremony.
By listing this security on our exchange, we became the first in Europe to list and admit this asset class to trading.
A Yulan bond is an offshore bond issued by a Chinese-based entity through Shanghai Clearing House (SHCH) and settled exclusively through Brussels-based Euroclear Bank, giving Chinese domestic entities the opportunity to access international capital markets thanks to the cross-border cooperation between SHCH and Euroclear Bank as domestic and foreign central securities depository infrastructures.
Read more about this important listing here.
As part of the FastLane admission process, non-European sovereigns and corporate issuers whose shares are listed on an EU regulated market or an equivalent, such as the Korea Exchange (KRX) or HKEX, are granted an exemption from the formal approval of their prospectus for the admission of debt securities on our Euro MTF.
To find out more about FastLane, click here.
Not only has our work in Asia-Pacific culminated in milestone listings but it has also seen our experts from the LGX Academy travel to Sri Lanka, Thailand, Bhutan, Tajikistan, Mongolia and China in order to facilitate the development of sustainable finance in these emerging markets.
The leading non-Asian listing venue
Just one month after welcoming the 2024 lunar new year, the International Capital Market Association (ICMA) released its “The Asian International Bond Markets: Developments & Trends report” which with it brought the first of what would be a series of important wins for LuxSE in the Asia-Pacific region.In this report, ICMA found that LuxSE was the leading non-Asian listing venue for bonds issued by Asian issuers in 2023 – drawing 20% of total listing values.
“For almost 40 years, our exchange has placed a strategic importance in facilitating the opening up of capital markets in Asia. What started off as a focus on Chinese capital markets specifically has flustered into partnerships and listings originating throughout the Asia-Pacific region, and this report’s findings reflect our teams’ ongoing efforts across the region, further emphasise Luxembourg’s prominent role as an international bond listing hub,” said LuxSE’s Regional Head of Asia-Pacific Fang Zhang, when we sat down to reflect on 2024 with her.
A year of inaugural listings
First panda bond on LuxSE
2024 was also an important year of firsts, made possible through issuers in Asia-Pacific.In April, we welcomed the first panda bond to our exchange - a CNY 3 billion bond issued by the Asian Infrastructure Investment Bank (AIIB).
To mark this next important step in the opening up of China's onshore bond market, we sat down with Darren Stipe, Head of Funding at AIIB to learn more about panda bonds and the bank's 4 years of activity in the market.
“The growth in panda bond issuance volume reflects the increasing demand and depth of the market. From our conversations with global investors, one trend that is definitely worth highlighting is that more of them are managing CNY now. More central banks and asset managers are investing in China’s bond market and benefiting from ample liquidity and decorrelation from other major bond markets,” said Mr Stipe in a special interview we did to mark the issuance.
First international green bond from HNCA focused on sustainable aviation fuel
By the time June arrived, it was already clear that 2024 was going to be one for the books when it came to celebrating important milestones with our Asia-Pacific partners and clients.Just 2 days shy of Luxembourg’s National Day, as part of an official visit by a high-level delegation from the Chinese province of Henan and its aviation industry to the Grand Duchy, we welcomed Henan Civil Aviation Development & Investment Co. Ltd (HNCA) to our exchange for a special Ring the Bell ceremony to mark HNCA’s debut in international capital markets – a listing that also made it the first Chinese entity to issue a green bond focusing on sustainable aviation fuel among other key sustainable projects.
“Sustainable Aviation Fuel can and must play an important role in creating a more low-carbon tomorrow. It has the potential to reduce carbon emissions by up to 80% over its lifecycle when compared to traditional fuels. And as a leader in the field of sustainable finance, on behalf of the Luxembourg Stock Exchange, I would like to applaud HNCA for its commitment to developing and mainstreaming this important innovation,” said LuxSE’s CEO Julie Becker during the Ring the Bell ceremony.
First Yulan bond comes to LuxSE
Fast forward to October, and it was time to announce the third big "first" from Asia-Pacific on our exchange in 2024 – a EUR 100 million Yulan bond issued by Orient Securities Company Limited.By listing this security on our exchange, we became the first in Europe to list and admit this asset class to trading.
A Yulan bond is an offshore bond issued by a Chinese-based entity through Shanghai Clearing House (SHCH) and settled exclusively through Brussels-based Euroclear Bank, giving Chinese domestic entities the opportunity to access international capital markets thanks to the cross-border cooperation between SHCH and Euroclear Bank as domestic and foreign central securities depository infrastructures.
Read more about this important listing here.
LuxSE: A major overseas market in South Korea
Closing out a year of incredible highs, in December, our exchange – thanks to the dedication of our Sales & Relationship Management team – was officially designated the status of ‘major overseas market’ in South Korea.
Although we celebrated a number of important, inaugural South Korean listings at our exchange in recent months, including the listing of Korea Housing Finance Corporation (KHFC)'s first social bond on LuxSE and our leading platform for sustainable finance, the Luxembourg Green Exchange (LGX), inclusion on this list is an important next step in our mission to unite international capital markets – from east to west.
To find out more about what this means for South Korean issuers, including the access to the accelerated listing process Fastlane, click here.
Further Fastlane expansion
Closing out a year of incredible highs, in January, in addition to Fastlane now being available to Korean corporate issuers, we announced the expansion of this listing service on our Euro MTF to seven additional markets – including the Hong Kong Stock Exchange (HKEX).As part of the FastLane admission process, non-European sovereigns and corporate issuers whose shares are listed on an EU regulated market or an equivalent, such as the Korea Exchange (KRX) or HKEX, are granted an exemption from the formal approval of their prospectus for the admission of debt securities on our Euro MTF.
To find out more about FastLane, click here.
Looking forward to a new Lunar Year
As we take the time to reflect on the main developments and highlights since celebrating the last Lunar New Year, there is one common theme that emerges throughout and that is global cooperation.Not only has our work in Asia-Pacific culminated in milestone listings but it has also seen our experts from the LGX Academy travel to Sri Lanka, Thailand, Bhutan, Tajikistan, Mongolia and China in order to facilitate the development of sustainable finance in these emerging markets.
The milestones that we have celebrated, be they big or small, have all been made possible through the global cooperation that connects and advances international capital markets.
As we celebrate this Lunar New Year, we wish you a happy year ahead, which we hope will be prosperous and full of possibilities.
