Countdown to quantos

Chinese structured products


Structured deposits in foreign currencies have been hugely popular in China. Range accruals, trigger swaps, cancellable swaps and currency baskets have dominated sales in retail and wealth management. Their popularity is due to their attractive returns over bank deposits, with retail products combining capital protection and yield enhancement.

Typically, the products are simple US dollar deposits with enhanced deposit rates if a certain exchange rate, such as dollar/euro, stays within