Cash & Liquidity ManagementInvestment & FundingCapital MarketsHong Kong to Launch First Renminbi-denominated MMF

Hong Kong to Launch First Renminbi-denominated MMF

ICBC-Credit Suisse Asset Management will launch the first offshore renminbi (RMB)-denominated money market fund (MMF) in Hong Kong later this year, according to
AsianInvestor
.

It reports that the group will launch two MMF funds, using the RMB qualified foreign institutional investors (RQFII) scheme, with one domiciled in Hong Kong; the other in Luxembourg as An Undertaking for Collective Investment of Transferable Securities (Ucits) fund.

AsianInvestor
said that these will be vanilla funds investing in onshore tradeable ultra-short bonds via RQFII, but will not invest in Chinese banks’ negotiated cash deposits or leveraged instruments.

Richard Tang, chief executive (CEO) of ICBC Credit Suisse AM (HK) told
AsianInvestor
that the MMFs would target retail and institutional investors looking for RMB cash management instruments.

“Since there’s no RMB cash management tools in Hong Kong today, most managers have to convert their holdings into dollars or Hong Kong dollars (HKD) when they exit the China onshore market,” said Tang.

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