The how, what and where of RCM’s new renminbi bond fund
Raymond Chan, chief investment officer, RCM Asia Pacific, discusses his company’s launch of a bond fund focused on assets denominated in renminbi.
The fund is launched in response to what RCM sees as a long-term plan by the Chinese government to make the renminbi the world’s third reserve currency after the dollar and euro.
To this end it has designated Hong Kong its initial offshore centre for trade in the currency, whilst allowing for its shallow appreciation over time. This policy is intended to position the currency for free trade in future, but avoiding the systemic shock that would come with an overnight appreciation against the dollar in particular.