singapore hotel: Direct currency trading "boosts Singapore"s status as yuan hub"

Thứ Ba, 22 tháng 10, 2013

Direct currency trading "boosts Singapore"s status as yuan hub"

Investors here also get more options to gain from China’s growth: Experts

Purchase this article for republication
Buy SPH photos

A move unveiled yesterday by Singapore and China to allow direct trading of their currencies cements the Republic’s status as a yuan trading hub, experts said.

The step, along with other measures to free up two-way financial trading, also gives investors here more ways to profit from China’s growth story, they added.

The most exciting move for investors here is China’s decision to include Singapore in a programme allowing financial institutions here to buy directly into the mainland securities market, up to a quota of 50 billion yuan (S$10.2 billion). This Renminbi Qualified Foreign Institutional Investor programme will also allow these financial institutions to then issue yuan-denominated investment products to investors here.

Banks and asset managers could, for example, help their clients channel yuan deposits in Singapore into China-listed stocks and bonds to get higher returns, while fund managers could package China-listed securities into unit trusts for retail investment.