BoA to launch Yuan prime brokerage services 23 November 2010Shanghai Reporter: Ben Wilkie
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Bank of America Merrill Lynch's prime brokerage has launched two Chinese yuan services in a move to attract more hedge fund business to the region.
The firm now accepts yuan deposits and yuan-denominated securities.
"Large international hedge funds used to use non-deliverable yuan forward contracts to make such bets," Merrill's Ben Williams told Bloomberg News. "These new services allow them to make the same bets through the potentially cheaper offshore yuan market."
He added, "given investor demand and the increasing focus on China, we're likely to see the development of yuan share classes among both regional and global hedge funds."
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