Deutsche Bank has launched a tradable offshore yuan bond index tracker as Germany’s biggest bank boosts its presence in the fast-growing offshore Chinese currency market, media reports said.

The index tracker – the first of its type - monitors the total return of yuan-denominated bonds and certificates of deposit that are at least 1 billion ($155 million) yuan in size and which have maturities of at least one year, the bank said. It will initially track performance of 42 yuan bonds.

The launch also highlights how the offshore market for the Chinese currency is rapidly developing. Already, a number of wealth managers and investment houses have created Chinese currency-based funds, responding to investor demand.

A number of banks, such as Citi, HSBC, BOC Hong Kong (Holdings) and SinoPac Securities (Asia), the Hong Kong unit of Taiwan-based SinoPac Financial Holdings, have rolled out indices for yuan bonds issued outside China.