HSBC Securities Services (HSS) and HSBC Prime Services have been appointed to provide fund administration, valuation and prime services to a new renminbi-denominated hedge fund, managed by CITIC Securities International Fund Management Limited (CSIFML).
The new fund, launched in mid-June, will invest initially in offshore renminbi-related securities in Greater China, taking advantage of the growing market and investor appetite in the region. It will be domiciled in the Cayman Islands and is open to professional and institutional investors through US dollars, Hong Kong dollars and renminbi share classes. The fund will be advised by CITIC Securities International Investment Management (HK) Limited (CSIIML).
The HSBC Group has a long-standing relationship with the manager and has provided a range of asset services in supporting the existing successful series of funds. CSIIML has a strong investment track record in the Greater China markets, focusing on fundamentals and value chain-based analysis.
We are excited to launch this new RMB multi-strategy hedge fund with this client of nine years, Ian Banks, head of HSBC Securities Services in Asia, says. It is particularly pleasing to be connecting up our strong fund administration offering with our Prime Services product to extend the value that we can bring to our client. With this fund, we again underline the capabilities across our organization for supporting new developments with offshore RMB.
HSS currently services about 90% of private RMB funds in Hong Kong and remains a market leader in the rapidly burgeoning renminbi-related products space.
As an alternative manager looking to bring innovative China focused products to the market, it is important to work with service providers who understand this space, Craig Lindsay, managing director and chief operating officer of CSIIML, says. The partnership with HSBC over the years has been a successful one, and when establishing this new fund, we prefer a service provider who has a track record with us.
In relation to the range of software being provided, Cian Burke, head of HSBC Prime Services, adds: The depth of product that we have established as a business means that we can offer end-to-end solutions for alternative fund managers. Our Prime offering enables more client requirements to be met and will further enhance our regional strength in asset servicing.
HSBC Prime Services in Asia is to take advantage of a perceived market need for a new kind of prime brokerage that offers robustness and more importantly transparency. The strength of the offering comes from the proven custody expertise and HSBCs capital strength.
(CM)