Wealth advisers crave renminbi relaxation in Hong Kong

China’s recent cross-border liberalisation in Hong Kong has whetted wealth managers’ appetites for further change. They are hopeful that Beijing will relax daily currency conversion limits and increase the variety of products that can be transacted in renminbi to accelerate the growth of services to rich mainlanders.

  • 29 Jul 2009
Email a colleague
Request a PDF

Beijing’s move to allow cross-border trade settlement in renminbi in Hong Kong could accelerate the growth of wealth management services to rich mainlanders and products denominated in the Chinese currency.

This is an exciting prospect for industry players such as Cindy Fu, general manager for wealth management at Standard Chartered Bank in Hong Kong.

“Chinese regulators have started the settlements, and if they open up more by relaxing the limitations on daily conversions and allowing more products to be transacted in renminbi, it would certainly help,” she said.

Hong Kong has a limited number of renminbi products available at present such as deposits and offshore bonds, which offer meagre returns. Investors are also constrained from taking up these instruments by a daily cap on renminbi conversion set at Rmb20,000 (US$2,900).

But wealth managers are hopeful that liberalisation can come quickly. Observers believe that Chinese regulators could expand the conversion rate within the next six-to-twelve months and are also hopeful that approvals to sell products such as insurance and structured products denominated in renminbi will also follow.

If Chinese regulators accelerate these moves, it would strengthen Hong Kong’s claim to be Asia’s premier wealth management hub, a mantle that Singapore also craves.

China does not have a mature private banking industry and many of its wealthiest citizens choose to make investments in Hong Kong. Industry observers believe that if more products can be denominated in renminbi, it would be a significant boost to Hong Kong’s private banking industry.

Julius Baer is among those private banks positioning itself to capture more business from China and also readying itself for the launch of renminbi-related business to sophisticated investors. It has hired senior Chinese-speaking private bankers to tap into this wealth, most recently managing director and senior adviser Alfred Tsai from Merrill Lynch.

“The amount of wealth coming out of China is growing at such a rapid pace and the demand for renminbi products continues to accelerate,” says Kenny Ho, head of products for Asia-Pacific at Julius Baer. “It’s hard to quantify how fast the renminbi investment products market will grow, but it’s likely to be exponential.”

  • 29 Jul 2009

Bookrunners of International Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 20 Mar 2017
1 JPMorgan 17,834.38 72 10.56%
2 Citi 16,648.84 65 9.86%
3 HSBC 14,502.17 79 8.59%
4 Deutsche Bank 10,659.15 37 6.31%
5 Standard Chartered Bank 8,423.03 47 4.99%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 14 Mar 2017
1 Citi 5,687.17 13 16.25%
2 JPMorgan 4,222.60 16 12.06%
3 HSBC 3,485.94 6 9.96%
4 Deutsche Bank 2,957.20 4 8.45%
5 Morgan Stanley 2,629.01 9 7.51%

Bookrunners of CEEMEA International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Mar 2017
1 JPMorgan 7,610.36 27 13.98%
2 Citi 6,685.06 20 12.28%
3 HSBC 4,539.92 22 8.34%
4 Deutsche Bank 3,547.08 9 6.52%
5 Standard Chartered Bank 3,538.08 13 6.50%

EMEA M&A Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 02 May 2016
1 JPMorgan 195.08 50 10.55%
2 Goldman Sachs 162.26 37 8.77%
3 Morgan Stanley 141.22 46 7.64%
4 Bank of America Merrill Lynch 114.20 33 6.18%
5 Citi 95.36 35 5.16%

Bookrunners of Central and Eastern Europe: Loans

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Mar 2017
1 Bank of America Merrill Lynch 390.53 2 13.27%
2 UniCredit 321.12 2 10.91%
3 Raiffeisen Bank International AG 206.29 2 7.01%
3 ING 206.29 2 7.01%
3 Citi 206.29 2 7.01%

Bookrunners of India DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 08 Mar 2017
1 AXIS Bank 1,318.15 23 14.27%
2 Trust Investment Advisors 1,079.75 29 11.69%
3 ICICI Bank 773.60 21 8.37%
4 Citi 601.55 5 6.51%
5 Standard Chartered Bank 591.66 6 6.41%