How to Buy Chinese Yuan
Open a savings account at a Bank of China branch., Buy Yuan exchange-traded notes (ETNs) or exchange-traded funds (ETFs)., Invest in a Renminbi Non-Deliverable Forward (RMB NDF) currency exchange derivative.
Step-by-Step Guide
-
Step 1: Open a savings account at a Bank of China branch.
Branches are located in Los Angeles and New York as well as in various locations around the world.
A Chinese savings account will be your gateway to the Yuan.
Fill out the requested paperwork, and provide the requested forms of identification.
Minimum deposit amounts vary depending on the currency you are using to open the account.
Contact the Bank of China for more information. -
Step 2: Buy Yuan exchange-traded notes (ETNs) or exchange-traded funds (ETFs).
You have 2 choices, either the WisdomTree Dreyfus Chinese Yuan Fund ETF (NYSE:
CYB) or the Market Vectors Chinese Renminbi/USD ETN (NYSE:
CNY).
CYB is more active than CNY, as its daily-trading volume tends to be higher. , This NDF is offered by HSBC Holdings and is one of the cheapest ways to invest in the Chinese Yuan.
You are allowed to purchase a predetermined amount of Renminbi for a specific exchange rate based on a fixed time frame sometime in the future.
You must put down 25 percent of the amount as a lien.
Keep in mind that there is no maximum contract amount, but there is a minimum amount that must be invested.
Contact HSBC Holdings to find out the minimum contract amount for your country. -
Step 3: Invest in a Renminbi Non-Deliverable Forward (RMB NDF) currency exchange derivative.
Detailed Guide
Branches are located in Los Angeles and New York as well as in various locations around the world.
A Chinese savings account will be your gateway to the Yuan.
Fill out the requested paperwork, and provide the requested forms of identification.
Minimum deposit amounts vary depending on the currency you are using to open the account.
Contact the Bank of China for more information.
You have 2 choices, either the WisdomTree Dreyfus Chinese Yuan Fund ETF (NYSE:
CYB) or the Market Vectors Chinese Renminbi/USD ETN (NYSE:
CNY).
CYB is more active than CNY, as its daily-trading volume tends to be higher. , This NDF is offered by HSBC Holdings and is one of the cheapest ways to invest in the Chinese Yuan.
You are allowed to purchase a predetermined amount of Renminbi for a specific exchange rate based on a fixed time frame sometime in the future.
You must put down 25 percent of the amount as a lien.
Keep in mind that there is no maximum contract amount, but there is a minimum amount that must be invested.
Contact HSBC Holdings to find out the minimum contract amount for your country.
About the Author
Ann Bennett
Ann Bennett is an experienced writer with over 4 years of expertise in lifestyle and practical guides. Passionate about sharing practical knowledge, Ann creates easy-to-follow guides that help readers achieve their goals.
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