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China´s economic takeoff and her close relationship with Hong Kong have catalyzed increasing demand for Reminbi investment products in Hong Kong. In this edition, we are going to walk you through different RMB investment products in the market. You can then select the most suitable RMB investment product for your own needs.
RMB savings is a simple and flexible investment product which allows you to earn interests on your every-day savings balance. You can manage your RMB savings via various channels including internet banking, branches and ATM network anytime, anywhere. It is an investment option and best suit those who demand absolute agility of their capitals.
You can earn better interest return for placing RMB Time Deposits. Most of the banks offer various tenors, the longest deposit tenor |  |
spans generally from 6 months to 1 year. As the deposit will be held for a fixed term and any premature withdrawal will result in penalty. You should consider your liquidity need before placing time deposits.
On top of ordinary RMB time deposits, some banks offer more options with monthly interest payments. You don't have to wait until the end of the tenor to earn interest. This option is particularly suitable for those who want to have monthly stable return on investment.
RMB bonds use RMB as the clearing currency, investors will redeem the face amount of the bonds at maturity. If interests are paid at fixed intervals, the amount will be settled in RMB. RMB bonds can be issued by different types of financial institutions such as commercial banks or state policy banks. Generally speaking, bonds give a higher yield than time deposit with a similar investment period. Some banks provide all-round RMB retail bond investment services including IPO bonds, secondary bond market trading and custody services, etc. Apart from considering the tenor and interest rate, investors should read all the important information about the background and credit ratings of the issuer, the contract terms of the product concerned, liquidity of the secondary market, service fee and risks involved before making a decision.
 There are RMB life insurance plans in the market which premiums, cash values and benefits payable can be settled in RMB or HKD. Apart from life protection, you can enjoy a growth of wealth leveraging the potential appreciation of RMB. This type of plan offering different tenors is particularly suitable for those who are in need of a life insurance and optimistic about the appreciation of RMB.
There are loads of RMB investment products in the market. Investors are advised to consider their own investment goal, tenor, funding liquidity, risk tolerance and other factors before choosing their investment products.
Risk Disclosure :
The following risk disclosure statements cannot disclose all the risks involved. You should undertake your own research and study before you trade or invest. You should carefully consider whether trading or investment is suitable in light of your own financial position and investment objectives. You are advised to seek independent financial and professional advice before you trade or invest. You should seek independent professional advice if you are uncertain of or have not understood any aspect of the following risk disclosure statement or the nature and risks involved in trading or investment.
Risks of RMB investments
RMB investments are subject to exchange rate fluctuations which may provide both opportunities and risks. The fluctuation in the exchange rate of RMB may result in losses in the event that the customer converts RMB into Hong Kong dollar or other foreign currencies.
Risk of debt securities trading
The prices of debt securities fluctuate, sometimes dramatically. The price of a debt security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling debt securities.
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