Structured Products Awards for Excellence 2015 – Best Provider of RMB-linked Structured Products


SPA-2015-RMB

HSBC

Simon Shek, Head of Private Banks Sales - Structured Equities, Rates & Funds, Asia-Pacific

Simon Shek, Head of Private Banks Sales – Structured Equities, Rates & Funds, Asia-Pacific

All eyes have been on the yuan following its largest tumble in two decades in August, after China’s central People’s Bank of China devalued the currency. HSBC’s ability to weather this particular market turmoil, through its ability to provide liquidity, has since been recognised by its private banking clients.Amid intense pricing competitiveness as distributors battle for back-to-back product distribution operations through robust manufacturing, HSBC has emerged as a clear winner, keeping clients ahead of the curve by expanding its offering in tandem with fluctuating market conditions.

“The ability to provide a secondary market for exits is basic but what we have demonstrated is also our ability to enable entry to the market in a fair manner when the market was volatile. This is only possible when your product provider has strong flows from both sides of the market with tight internal controls to ensure fair treatment to clients, even under extreme conditions,” said Simon Shek, head of private banks sales, Asia Pacific, HSBC. He oversees structured products, equities, rates and funds, global banking and markets, and wealth management sales.

With uncertainty hovering over the yuan for much of the second half of the year (the International Monetary Fund has now named the yuan in the Special Drawing Rights basket of currencies) client interest in RMB-denominated structured products had wavered. HSBC responded by keeping its doors wide open, particularly during the mid-year volatility following the lowering of the yuan’s reference rate that caused it to slide by 3% against the greenback.

“Volume was down as these events created too much uncertainty in the market but different to previous crises, the amount of leverage in the market was well contained,” Shek explained. Consequently, HSBC was prepared to cater to clients looking for exits.

“We see more clients capturing the opportunities in this volatile market than those requiring to exit the market.”

A well-established reputation for offering a wide range of structured products, coupled with competitive pricing as well as timely and innovative responses to sharp market changes, mean HSBC is this year’s Best Provider of RMB-linked Structured products.