Yuan-denominated investment products popular in Hong Kong

16:03, June 24, 2010      

Email | Print | Subscribe | Comments | Forum 

With the People's Bank of China's recent actions to resume yuan exchange rate reform and expand the pilot program for cross-border yuan trade settlement, Hong Kong investors' expectations for a stronger yuan rose significantly.

Along with the growing expectations of yuan appreciation, the existing yuan-denominated investment products cannot meet the needs of Hong Kong investors anymore, and they have been trying to find new ways to benefit from the yuan revaluation. Local financial institutions unveiled various financial products one after another.

According to a recent survey conducted by CITIC Bank International, over 40 percent of Hong Kong residents are interested in or have bought yuan-denominated investment products, and around 80 percent are optimistic about the yuan's great potential for appreciation over the next two years.

The survey shows that in 2009, 37 percent of respondents had certain amounts of yuan deposited in banks, 22 percent opened yuan accounts on the Chinese mainland, 11 percent bought yuan bonds, 8 percent made property purchases on the Chinese mainland and over 6 percent invested in mutual funds which targeted China's A-share market. Although 47 percent have never made any yuan-related investments last year, 24 percent of them will consider acquiring yuan assets in the following two years.

Hong Kong investors are actively seeking new investment channels, and some have chosen to directly convert part of their Hong Kong dollars assets into yuan assets. In recent days, currency exchange has become a booming business in Shenzhen, and the number of people who opened yuan accounts and deposited money in banks near ports has also sharply increased.

Hong Kong's financial institutions have grasped this business opportunity. Banks including HSBC Holdings Plc. have raised the interest rates for yuan fixed deposits in order to attract more yuan deposits. Following banks such as BOC Hong Kong and HSBC, American International Assurance has also launched a deposit insurance scheme named "Guaranteed Fixed-rate Yuan Savings."

By People's Daily Online


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
  • A visitor passes by in the exhibition of Istanbul design week on Sept. 28, 2011 in Istanbul, Turkey. Istanbul design week will be hosting designers and design exhibitions from around the world in Istanbul from Sept 28 to Oct 2 with the participation of 25 countries. (Xinhua/Ma yan)
  • Red flag flies at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 28, 2011. A spokesperson with China's manned space program said Wednesday that fuel has been injected into the Long March-2FT1 carrier rocket in preparation for launching the Tiangong-1 space module Thursday evening as planned. (Xinhua/Wang Jianmin)
  • A militant loyal to the Libyan National Transitional Council (NTC) waves in a tank near Bani Walid, one of the pro-Muammar Gaddafi strongholds, on Sept. 28, 2011. (Xinhua/Hamza Turkia)
  • Jewish worshippers pray at the Western Wall, Judaism's holiest prayer site, in Jerusalem's Old City on Sept. 28, 2011, ahead of Rosh Hashanah, the two-day Jewish new year which will begin at sunset on Sept. 28 and conclude at nightfall on Sept. 30. (Xinhua/Muammar Awad)
  • High school student Johanna Choapa is helped by her father after announcing the end of hunger strike in Santiago, capital of Chile, on Sept. 28, 2011. The end of the strike took place to make way for a dialogue with the government, seeking to resolve the four-month crisis in the education sector. (Xinhua/Jorge Villegas)
Hot Forum Discussion