Julius Baer introduces offshore Renminbi products for Swiss-booked clients

Internationalisation of the Renminbi allows for new investment opportunities

Julius Baer, the leading Swiss private banking group, is expanding its offshore Renminbi (CNH) range of solutions and services. The new offer to clients booked in Switzerland includes CNH-denominated accounts, fiduciary deposits, bonds, funds and FX products. The launch coincides with the Chinese New Year celebrations, thus also symbolically underlining the Bank’s commitment and closeness to Asia, its second home market.

Julius Baer is now able to offer offshore Renminbi (CNH) denominated accounts and investment products to clients booked in Switzerland, positioning itself at the forefront of such offerings in Europe. With this move, Julius Baer is reaffirming its commitment to delivering its expertise in Asian investments to clients booked in its other home market, Switzerland. This proposition enables clients to participate in the dynamic market developments in Asia, especially in China.

Hans Lauber, Head Investment Solutions Group, said: “Our long-standing involvement in Asia allows us to get a better understanding of the local markets, and we can thus give our clients the benefit of our years of experience. We can now offer comprehensive Asian investment opportunities within the global investment approach of our Bank.”

Kerry Goh, Head Asia Investment Solutions, added: “With the setting up of the Julius Baer offshore Renminbi booking platform in Switzerland, the Bank is demonstrating its commitment to Asia, its second home market. This move gives our clients the unique opportunity to access one of the fastest growing currency markets in the world. Symbolically, we are launching the new offer to coincide with the Chinese New Year celebrations currently taking place, ushering in the Year of the Dragon.”

The CNH is the deliverable Chinese Yuan market developed in Hong Kong and is underpinned by China’s plans to internationalise its currency. Its stunning ascent is reflected in the growth in deposits and in the issuance volume of CNH bonds in Hong Kong. The CNH market is not regulated by the Chinese authorities and – in regular market conditions – has a marginally different exchange rate than the more highly regulated onshore Renminbi (CNY).

CNH-denominated investment products and services available to clients booked in Switzerland currently include, among others: accounts, fiduciary deposits, bonds, funds (CNH share classes), and FX products (spot, forwards, options, swaps). In addition, the offering will be complemented by dual currency investments and a range of structured products (e.g. equity-linked notes on China H-shares).