Personal foreign exchange structured deposits are a type of foreign exchange assets management product for individual clients combining financial derivatives instruments and traditional financial products. Clients may bear certain risks when using this financial product. The deposits include forward trading, futures swaps (currency and interest rate swaps) options. This product offers the client a higher interest rate than regular foreign exchange deposits.

CCB’s personal foreign exchange structured deposits are branded “Profit from Exchange”.

Four major reasons for selecting CCB’s personal foreign exchange structured deposits

1. Maintaining and increasing value. There will no risks for the principals of personal foreign exchange structured deposits. You may choose different structured products according to different risk preferences and obtain a higher interest rate than regular foreign exchange deposits.

2. Rich additional functions. CCB may offer pledge loans and statement of deposits with this product.

3. Simple procedures for the purchase. This service is available in all our foreign exchange deposits outlets across the nation.

4. Complete products. The complete product line can meet the needs of investors with different risk preferences and provides products with different proceeds and risks for investors. The trading currencies include US dollar, Hong Kong dollar, euro, etc.

Functions

1. Investment and wealth management. CCB may conduct interest rate swap or currency swap trading on behalf of clients to ensure the proceeds of the deposits.

2. Pledge loans. CCB may offer pledge loans for this product.

3. Statement of deposits: CCB may offer statement of deposits for this product.

Service Channels

This service is available in all our foreign exchange deposits outlets across the nation.

Target Clients

The target clients are Chinese residents, and foreign nationals who have resided in China for over one year, provided that they have a personal foreign exchange accounts with the bank or hold foreign currency cash.

Currencies, Minimum Amount, and Terms of Trading

This product is available in the US dollar, Hong Kong dollar, Euro. The minimum amount is US$1,000 or US$5,000, and the terms of trading vary from one year to ten years.

Types of Structured Deposits Products

● Fixed-term/Variable-term foreign exchange structured deposits are embedded with both interest rate swaps and options. The interest rate swap involves a swap between a fixed interest rate and a floating interest rate to increase return on investment. An example of the interest rate option is the option to cancel, which allows the bank to terminate the transaction on an agreed date before expiration on the basis of market rates and trends.

● Structured Products with Options. An example of such products is one whose interest rate varies on a daily basis according to LIBOR.

Benefits

The client receives both interest on principal and a premium.

Client Process

1. The client can make an appointment for a transaction at a CCB outlet. Identification must be presented. (If an agent is used, the agent must present his or her identification and a valid agency agreement.)

2. When making an appointment, the client must sign a Commitment and an
Application for the Transaction, open a deposit account, and freeze the amount of currency involved in the transaction. Interest starts to accrue on this amount on the day of the transaction.

Special Notes

This product does not incur loss of the principal, while offering the investor a return that is higher than interest rates on regular deposits. According to the principle that return must be commensurate with risk, the investor does bear certain risks. Because the principal must not be withdrawn or used as collateral, the investor bears some liquidity risks, and may take a loss if a major increase in the interest rate does occur.

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