Was trying to consolidate iron-wife's finance. Inquired with HSBC (shanghai) branch and HSBC Hong Kong office for some RMB time deposit rates. Wow....
The one in Shanghai, because it is a full fledged Chinese bank, the time deposit rates are based on Chinese gov't's published rates: 3 months 3.33%, 6 months 3.78%, 12 months 4.14%, 24 months 4.68%. In contrast, the HSBC bank in Hong Kong quoted: 3 months 0.575%, 6 months 0.70%. It didn't bother telling me the 12-month rate. But of course, it tried selling me a RMB IPO bond offering, 2 years at 3.24% but there is a 0.15% per year, yes, per year Application Fee. What the heck is that Application Fee for? I wasn't applying for the bond to be IPO, I am buying. Ridiculous.
Holding RMB outside of China is kinda useless because of the restrictions and all sorts of Chinese controls at work. This is why the foreign reserve of China is topping over 1 Trillion.
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