The Luxembourg Stock Exchange (LuxSE) has become the first European exchange to list a Yulan bond, and says this marks a significant milestone in the financial collaboration between China and Europe.
LuxSE listed Orient Securities Company Limited’s €100 million Yulan bond on its Euro MTF market, establishing a new pathway for international investors to access Chinese bond markets.
Yulan bonds, named after the Yulan flower (the official flower of Shanghai), are an innovative financial instrument issued through the Shanghai Clearing House (SHCH) and settled via Euroclear Bank. These bonds enable Chinese entities to reach global investors, facilitating cross-border financial activity.
The Yulan bond structure was introduced in 2021 by the Bank of China and has since played a role in enhancing China’s access to international capital markets.
The listing of Orient Securities’ bond at LuxSE was the result of a partnership between LuxSE, SHCH, Euroclear Bank, and the issuer. Philippe Laurensy, CEO of Asia Pacific at Euroclear, highlighted the collaboration’s importance, stating that the move offers a “new investment route into China,” giving global investors greater access to Chinese bonds.
Arnaud Delestienne, Member of the Executive Committee at LuxSE, underscored the exchange’s longstanding role as a gateway for Chinese issuers to international markets. “We are proud to be the first European exchange to offer the opportunity to trade in this unique asset class,” Delestienne said, noting the exchange’s efforts in fostering financial connectivity.
The listing of the Yulan bond follows a series of significant developments at LuxSE, including its hosting of the first Panda bond in April 2024. With more than 44,000 listed internatonal securities, LuxSE plays a pivotal role in connecting China and global capital markets.
