Citi will launch money market fund distribution services to institutional clients in China to help multinational and local corporations in the country to better manage cash amid volatile global markets.
The RMB-denominated fund Citi will offer is AAA-rated by an international credit rating agency, with onshore commercial paper, certificates of deposit and short-term government bonds.
Citi serves around 70 per cent of Fortune 500 companies operating in mainland China, 300 leading local corporates and many more ‘emerging’ companies spanning sectors from
fintech, biotech to clean energy.
Many of these companies have annual revenues running into hundreds of millions of
RMB.
Among the first foreign banks to incorporate locally in 2007, Citi has strong ties with leading Chinese brokerages and fund houses, and looks to accelerate its development and investment in the country.
The banks’ cash management platform encompasses payments, deposits and cash pooling, among other services.
Commenting on the initiative, Rajesh Mehta, Asia Pacific head of treasury and trade solutions at Citi, says: “With a RMB 10 trillion market, 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.”
Howard Yang, China head of treasury and trade solutions at Citi, comments: “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.”
