– Opens dialogue with the Grand Duchy of Luxembourg in China under the Belt and Road Initiative
– Uncovers financing opportunities in Luxembourg, a bridge to Europe’s capital markets
HONG KONG — HMV Digital China Group Ltd (HKE: 8078), a leader in the entertainment industry with a complete vertically integrated business chain, is pleased to announce that a dialogue between the Grand Duchy of Luxembourg and the Group has been initiated.
On 17 August, the HMV Group, led by Mr. Stephen Shiu Jr., Chairman, with the collaboration of Growing Capital Group, met the Minister Counsellor – Deputy Head of Mission, Mr. Roland Reiland, and the Economic Counsellor, Ms. Anneleen Van Landeghem, of the Embassy of the Grand Duchy of Luxembourg in China.
Under the “Belt and Road” Initiative, the discussion with the Luxembourg government opens a door for the Group in entering an international capital markets platform for growing its cultural entertainment business with a global perspective and a long-term vision.
Regarding the growth of Chinese movie industry, as of 2016, China ranked the No.1 nation with over 40,000 screens, surpassing that of the U.S. It is expected that China’s number of screens will grow to about 80,000 by 2020. However, competition in the market is growing more intense.
Mr. Shiu Stephen Jr., Chairman of HMV Digital China, said:
“To seize the opportunities in the flourishing Chinese entertainment industry in the midst of its growth stage, an extended capital platform stretching from Hong Kong, China to Europe will provide a strategically more advantageous position for the Group in expanding our cultural entertainment business worldwide.”
Luxembourg, as one of the largest capital markets in the world, has been deemed a bridge between China and Europe for foreign investors who are looking to the Chinese onshore market for growth opportunities. As an international RMB centre, Luxembourg is the 2nd largest domicile of funds investing in Mainland China after Hong Kong.
Mr. Roland Reiland, Deputy Head of Mission, commented:
“The exchange with HMV Digital China is fruitful and inspirational. As a major capital market in Europe investing in Chinese markets, we feel the vibrant and fast growing cultural entertainment industry in China will create lots of interest from European investors in Luxembourg.”
Currently, 65% of European funds investing in Mainland China are domiciled in Luxembourg. Luxembourg Stock Exchange is the leading exchange in Europe for listing Dim Sum Bonds, and the second worldwide. The Exchange monitors the various markets for opportunity, including RQFII/RMB Qualified Foreign Institutional Investor, CIBM and Stock-Connect programs in China, which provide ample opportunity for HMV’s financial advancement, in a global perspective.