HSBC launches renminbi deposit accounts in Singapore

HSBC said it has launched renminbi deposit accounts for its customers in Singapore, making it one of the banks offering such services in Singapore.

A service staff at the bank said on Monday that it is promoting the account for a period of about two months from Dec. 27 to Feb. 28.

Winston Teo, head of wealth management at HSBC Singapore, said many retail customers have already invested in China funds.

"We are seeing more demand, particularly from affluent customers, for instruments that allow them to gain access to the renminbi, as it provides an avenue to diversify their investment and unlock the full potential of the China growth story," the Straits Times quoted Teo as saying.

HSBC Affluent Asian Society has found that a fifth of Singaporeans hold foreign currency deposits, so it makes sense to offer them access to the renminbi, he added.

HSBC has also launched renminbi deposit account services in China's Hong Kong Special Administrative Region as well as Malaysia and Japan.

Singapore's DBS Bank has recently begun offering yuan- denominated investments to local private banking and treasury customers. The bank required an account with a minimum deposit of US$39,063 for its customers in Singapore to buy yuan in Hong Kong's offshore market.