Standard Chartered Bank
Standard Chartered took full advantage of what was a landmark year for the RMB, keeping clients ahead of the curve by expanding its offering in tandem with fluctuating market conditions. “We continue to keep at the forefront on the pace of development and introduce new and innovative RMB solutions for our clients,” affirms Min Park, head of equity derivatives and convertible bond sales, Standard Chartered Bank.
The PBOC’s decision in March to double the dollar trading band of the Yuan led to a significant increase in RMB-linked product volatility over the year. The reputation Standard Chartered has built, as one of the very first banks to offer structured products denominated in CNH, induced clients to turn to the bank as volatility inevitably increased. Park’s team responded by tailoring products to suit clients in the newly expanded market. “CNH volatility in Q2 led many investors of existing CNH holdings to explore longer dated structures as they began to consider a longer holding period for their CNH assets,” affirms Park, adding that “clients remain very interested in 1-2 year principal protected structures, using the equity-linked performance to beat the CNH deposit yield.”
As time passes and the RMB continues to internationalise, Standard Chartered stands to profit from its strong history and experience in the market. Recent measures, such as the inauguration of the Shanghai-Hong Kong Stock Connect, and the announcement from the Hong Kong Monetary Authority (HKMA) that it would scrap the RMB20,000 (US$3,283) daily conversion cap, ensures that interest in RMB linked structured products will continue to increase. “The RMB internationalisation momentum has gained good traction. We expect that there will be more CNH assets looking for investment opportunities hence the demand for CNH-denominated equity structured products should continue to grow,” concludes Park.
A well-established reputation for a wide range of products and competitive pricing, combined with a timely, innovative response to a major change in the underlying market have all contributed to Standard Chartered being voted the Best Provider of RMB-linked Structured Products of 2014.