Bank of China to Provide Swiss Investment Funds in RMB
Sept. 9 – The Bank of China is set to launch a range of Swiss-based funds, denominated in renminbi to provide international-based investments to its wealthy clients and also ensure the money does not leave China.
The funds are being rolled out by the Bank of China (Suisse) Fund Management, a Geneva-based private bank and the first Chinese asset manager in Europe.
The Wall Street Journal reports that half the funds will be invested in equities and half will be invested in bonds and will include yuan-denominated investments in China as well as others in global markets.
The fund allows Chinese nationals to participate in a Swiss registered fund and permits a RMB denominated share class. Chinese investors will also be allowed to invest in the international markets without exposure to foreign currency risks. Conversely, international investors will be able to build an exposure in RMB and the Chinese markets through Swiss regulated products.
There is a growing market for both services as foreign investors wish to invest money in Chinese funds to take advantage of the countries economic growth and Chinese nationals want to diversify their wealth into global markets.
Half of the funds will focus on emerging market equities in Switzerland, Europe, America, Japan and China, while the other half will provide exposure to global and convertible bonds.
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