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 considerable change...

ISSN: 2151-1845 / CDC10004H

Free Trial

Take a trial today and access

  • Performance news, fund launches, regulation changes and people moves
  • Profiles of fund managers, investors and distributors
  • Live league tables
  • Investor mandates

Popular Searches on HFI