Rydex gung-ho on China, launches renminbi fund

Rydex SGI is scheduled to launch its CurrencyShares Chinese Renminbi Trust Ticker:(FXCH), expanding its CurrencyShares lineup to 10 exchange-traded products and offering investors a way to hold the official currency of the People's Republic of China. The new product also brings to six the number of Chinese focused products being offered by the combined entities of Guggenheim Partners and Rydex, which announced two weeks ago plans to consolidate asset management operations by the end of the year. Last week Guggenheim also launched the Guggenheim Yuan Bond ETF Ticker:(RMB), a fund providing access to China's Dim Sum bond market. “We're big believers in the long-term prospects for China,” said Bill Belden, managing director and head of product development at Guggenheim. “It's our belief that the currency has upward pressure on some of the constraints that have kept it low,” he added. “And we're big proponent on non-dollar assets right now.” The new CurrencyShares product, which will eventually be rebranded along with most Rydex products as Guggenheim, provides pure exposure to the renminbi by holding foreign currency deposits, as opposed to derivatives. “The renminbi has become an important currency in the world, and the China growth story is expected to continue long-term,” said Jim King, an ETF portfolio manager at Rydex.