-Dwindling offshore RMB pools are increasing financing costs for inbound access channels.
-The RMB’s drive towards internationalization is being hampered as a result.

Update: Liquidity squeezes in the offshore RMB (CNH) market are becoming a greater concern for global asset managers. Greater funding costs (we’ve all seen the CNH-HIBOR spikes) and shrinking CNH pools in Hong Kong are putting pressure on certain cross-border channels, in some cases discouraging demand. This raises considerations for service providers offering inbound investment support and also places an obstacle in the path of RMB internationalization. Z-Ben Advisors believes both global managers and policymakers need to reassess their approach to CNH volatility in order to maintain and service future inbound China investments.

Z-Ben Analysis

Understanding how to reassess an inbound investment strategy is becoming a key consideration for global asset managers. We believe the cross-border investment program most likely to suffer is…

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