Recently, CCB formally launched the product of individual housing loans with fixed interest rate in Shenzhen, i.e. housing loans whose interest rates are fixed within an agreed term regardless of the interest rate readjustments by the People’s Bank of China or the market interest rate changes.

Since the end of 2004 when the central bank raised the interest rate of individual housing loans for the first time, there has existed the expectation of further rise in interest rates in the market and the borrowers pay increasing attention to their interest rate risks. As the first Chinese commercial bank launching the individual housing loan business, CCB always follows the customer-centric philosophy to strengthen the R&D and enrich the individual housing loan product line so as to meet the diversified and personalized demands for credit and wealth management of customers. At the beginning of 2006, the bank selected its Shenzhen branch which enjoys sound market environment, rich customer resources and strong innovative capacity and management expertise to launch its pilot product of individual housing loans with fixed interest rate.

It is said that the new product has three terms of 3, 5 and 10 years. For each term customers may choose the repayment method of equality corpus and interest or the method of equality corpus. The product has fixed interest rate, repayment period and interest expenses. Within the agreed fixed interest rate period, since the interest expenses have been known exactly, customers do not need worry about the influences of credit interest rate changes on their capital position and can better manage their wealth to enhance life quality.

The product is designed flexibly to protect the interests and meet the changing demands of customers. After each fixed interest rate period expires, customers have the right to choosing the interest rate type again. Referring to the interest rate of the time, they may choose continuing the fixed interest rate or adjustable rate. If within the fixed interest rate period customers request repayment in advance, a certain amount of penalty is required to go through the procedure.