The future for renminbi UCITS funds
Thu Oct 27, 2011
The Chinese government is increasingly internationalising its currency. Joy Dunbar, editor of Absolute UCITS, explores if the renminbi could become the fourth currency share class for absolute return UCITS funds.
The renminbi: The fourth share class?
There are very few UCITS funds at the moment that have
renminbi share classes. The stalwart share classes, for
investors wanting to put their money into an absolute return
UCITS funds are dollar, euro and sterling. Could the renminbi
join the trio of established share classes to become the fourth
standard currency available to investors?
The growth of the financial services sector in China
China is becoming bolder in the internationalisation of the
renminbi and is actively exploring ways to reduce its
dependency on the dollar, according to a report published by
Luxembourg For Finance.
The 25-page report states that the Chinese government is
promoting Shanghai as an international financial centre by 2020
and that part of this strategy involves removing the
constraints on the internationalisation of the renminbi.
The report states: "The period to 2015 is likely to be one of
ISSN: 2151-1845 / CDC10004H
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