Large changes to the international balance sheet and financial flows of an economy may also arise from redomiciliations of headquarters. Common patterns associated with moving the headquarters of an MNE to a financial centre economy are increases in net FDI assets of the financial centre, while portfolio equity liabilities increase if the shareholders remain unchanged.
In relation to FDI of the euro area, it is notable that, in recent years, gross FDI transactions of euro area financial centres have been so large that these have driven aggregate euro area developments (Chart 8).