Hong Kong residents investing more in RMB products

RMB assets to rise to 32% of their portfolios.

A survey by China Construction Bank (Asia) shows that residents of Hong Kong plan to increase the portion of renminbi products in their portfolios to 32% over the next 12 months from the current 27% due to the RMB’s appreciation prospects.

CCB expects the renminbi to appreciate 1% to 3% against the US dollar annually over the next five years. The renminbi has risen about 35% against the US dollar since 2005 when the Chinese currency was delinked from the latter.

Renminbi deposits in Hong Kong has reached US$110.8 billion in Hong Kong. This total was only US$16 billion in early 2010.

Currently, about 32% of bank customers in Hong Kong have renminbi current accounts; 25% hold renminbi fixed accounts while 21% have renminbi investments, said CCB.

Over the next 12 months, 41% of Hong Kong residents said they plan to hold renminbi deposits (either fixed or current accounts), the second favorable asset class after Hong Kong equities which 42% of them would like to have.

In addition, 19% of the respondents revealed they wanted to buy renminbi bonds and 12% are looking for other renminbi investments.