HSBC Private Bank has added more products to its CNH stable, off the back of a growing demand for offshore Chinese Reminbi
services.

New services
include the first CNH-denominated hedge fund offering of HSBC Private Bank’s
flagship hedge fund, new CNH fixed income products, the first ever
CNH-denominated Hong Kong-based initial public offering, and a CNH bond fund.

Since the launch
of its CNH services last July, HSBC’s CNH product initiatives have totalled CNH 19
billion ($3 billion).

“The success and rapid growth of our suite of products show the demand
from private bank clients for access to the CNH market. HSBC Private Bank’s
close co-operation with its global banking and markets division has brought our
clients to realise the enormous investment potential of the region. We believe that economic growth in the Far East region will prove
relatively resilient to the slowdown in developed markets and this is leading
to a greater demand for CNH exposure,” said Daniel Ellis, head of the investment group.

When the Hong
Kong Monetary Authority liberalized the trading of offshore Chinese Renminbi in
Hong Kong in July 2010, a number of private banks including HSBC began
providing Reminbi-denominated asset services to their clients, including Italian asset manager Azimut, the UK's Guinness Asset Management, and Swiss private bank Julius Baer.

The move is part of the bank’s aggressive growth in Asia, which HSBC predicts will be the largest wealth market as early as 2013. The bank recently announced plans to hire 150 relationship managers with particular emphasis on the emerging markets.