Following in the footsteps of HSBC, DBS has launched a series of Renminbi products to cater for the demand for the Chinese currency.
These include fixed deposits and currency-linked investments.
Interestingly, DBS has emphasised on the risks of investing in their Yuan product.
The offshore yuan (CNH) is actually less liquid compared to the onshore Renminib (CNY) and investors could be investing at very wide spreads.
If you are considering investing in a Yuan product (or any other foreign currency fixed deposit for that matter), always compare the spread and not only the interest rates that the bank is offering you.
With CNH spreads going up to as wide as 8%, you will need to be a long term investor to reap the benefits of Yuan appreciation.