DBS (DBSM.SI), Southeast Asia’s biggest bank, said on Thursday it will invest $250 million in its treasury and markets unit over the next five years as it seeks to boost its forex and fixed-income business in China and India.

Andrew Ng, head of DBS treasury and markets, told reporters that he expects more than 55% of the unit's revenue will come from outside of Singapore by 2013 from 35% now.

 

The unit will also increase its headcount from about 400 people to 600 in three to five years, with new hires to be mostly made in China, Hong Kong and India.

 

“This renminbi internationalisation is a big thing over the next five to 10 years in Asia,” Ng said. China is going to  “quicken the pace of the renminbi relaxation”, he said.

 

He said DBS last month transacted close to a record 9 billion yuan ($1.78 billion) worth of trades for its customers in the offshore yuan spot market in Hong Kong and such trades could grow by over three to five times over one to two years.

 

Hong Kong has become a platform for China to spread the use of its currency abroad, issuing increasing volumes of yuan-denominated bonds and offering ways to invest in the renminbi.