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
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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
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1 Citi 3,599.18 10 11.11%
2 HSBC 1,925.24 7 5.94%
3 Bank of America Merrill Lynch 1,736.50 8 5.36%
4 Itau BBA 916.67 2 2.83%
5 Bradesco BBI 900.00 2 2.78%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 Citi 2,421.53 5 33.29%
2 HSBC 937.89 2 12.90%
3 Itau BBA 916.67 2 12.60%
4 Bradesco BBI 900.00 2 12.37%
5 Morgan Stanley 800.00 1 11.00%

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1 Standard Chartered Bank 295.00 1 32.24%
1 HSBC 295.00 1 32.24%
1 Credit Agricole CIB 295.00 1 32.24%
4 Mitsubishi UFJ Financial Group 30.00 1 3.28%
Subtotal 915.00 2 100.00%

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Rank Lead Manager Amount $m No of issues Share %
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1 JPMorgan 195.08 50 10.55%
2 Goldman Sachs 162.26 37 8.77%
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5 Citi 95.36 35 5.16%

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Rank Lead Manager Amount $m No of issues Share %
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1 UniCredit 4,163.05 29 12.35%
2 ING 3,184.83 25 9.45%
3 SG Corporate & Investment Banking 2,911.64 17 8.64%
4 Citi 2,741.75 18 8.13%
5 HSBC 1,822.32 18 5.41%

Bookrunners of India DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Jan 2017
1 State Bank of India 262.46 3 12.40%
1 Citi 262.46 3 12.40%
3 Standard Chartered Bank 242.57 3 11.46%
4 Mitsubishi UFJ Financial Group 191.19 2 9.03%
4 DBS 191.19 2 9.03%