HSBC offers Renminbi-denominated retail CDs
HK$57,305 minimum subscription can yield interest payments of 2 per cent per annum upon maturity.
HSBC is rolling out its first renminbi retail certificate of deposit (RMB CD) to meet the growing demand for RMB denominated products from customers in Hong Kong.
Starting from 9 August 2010, the RMB CD with a tenor of six months will be available to both retail and commercial banking customers at all HSBC branches. The CD, denominated in RMB, allows investors to receive interest payments of 2 per cent per annum upon maturity. Subscription will be available on a first-come, first-served basis and the minimum subscription amount is RMB50,000 (HK$57,305), according to an HSBC report.
Francesca McDonagh, Head of Personal Financial Services Hong Kong, said: “With our first tranche of RMB-denominated FX-linked deposits launched last month, the minimum allocation was met within eight hours. Our latest RMB investment offering, the RMB CD, should be well received, given the level of demand for such products now in Hong Kong.”
Among the first to offer RMB-denominated investment products in Hong Kong, HSBC has also launched RMB FX-linked deposits and RMB currency-linked deposits in July to provide customers alternative options for enhancing yields on their RMB deposits.
HSBC was the first to issue RMB bonds in Hong Kong, the first to undertake a cross-border RMB settlement and the first to establish a RMB trade finance standard rate for reference. Taking advantage of its regional network, HSBC has conducted RMB trade settlement across all ASEAN sites, the first bank able to do so in Asia. Reinforcing its presence as the leading international bank, the Group has established RMB trade settlement capability in 23 markets globally.
