Citi Offers China RMB Money Fund
A press release entitled, "Citigroup : Citi Offers First Money Market Fund Distribution Service to Institutional Clients in China," states, "Citi has started offering money market fund distribution services to institutional clients in China -- a move set to help multinational and local corporates in the country better manage cash amid volatile global markets. Leading food and beverage company Danone has become the first to execute this service. With short investment cycles, money market funds might offer treasurers valuable return in volatile markets. The RMB-denominated fund Citi offers as of now is AAA-rated by an international credit rating agency, with onshore commercial paper, certificates of deposit, short-term government bonds and other money market instruments.... Clients can efficiently manage, subscribe and redeem via Citi's banking platform." Rajesh Mehta, Asia Pacific Head of Treasury and Trade Solutions at Citi, comments, "With a RMB 10 trillion market1, China's onshore money market funds provide many investment opportunities for Citi's clients. Citi plans to roll out more of such funds for clients in China to meet their cash management needs, while beefing up our RMB product offering." Melvin Lim, VP, Danone Business Services China, North Asia & Oceania, says, "Citi's RMB Money Market Fund Distribution Program provides a convenient transaction channel of money market funds to enhance the return of surplus cash while maintaining liquidity." Howard Yang, China Head of Treasury and Trade Solutions at Citi, adds, "We are actively rolling more RMB investment channels that are convenient to use with plenty liquidity, as we meet client demand, help them navigate risks and create value for the real economy." The release explains, "The first money market fund on the shelf is offered by a large asset management company Citi has worked with for many years in China. Among the first foreign banks to incorporate locally in 2007, Citi has strong ties with leading Chinese brokerages and fund houses, which helped provide Citi's clients with a wide range of local and global opportunities."
