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Financial Guarantee Service for Pledged Book-Entry Bonds
 
About the Service
Book-entry bonds include national bonds, policy-oriented financial bonds, financial and corporate bonds, central bank bills, and other bonds.   
Under this service model, the applicant obtains finance from us in the form of liquid capital loans, commercial acceptance drafts, and letters of credit by pledging the book-entry bonds it or a third party has appointed us to purchase.  

Basic Requirements for the Applicant
  • 1.
    It is registered with an Industry and Commerce administration (or a higher-level regulatory authority);
  • 2.
    Has a healthy financial system, can repay the principal and interest, and has good credit standing with us;
  • 3.
    Holds a basic or general deposit account with CMB that has been used for transactions;
  • 4.
    Pledges book-entry bonds held by the applicant or a third party entrusted in a Category C account for bond trusteeship with CMB as the pledger.
Procedure
  • 1.
    The borrower submits a written application and necessary materials to CMB;
  • 2.
    CMB examines the borrower’s credit standing, and the pledger's bond trusteeship account and bond transactions;
  • 3.
    Upon approval, CMB signs a contract with the borrower and pledger, and registers the pledge with the Central Clearing and Registration Corporation;
  • 4.
    CMB extends loans or other financing services.
Benefits
  • ·
    Follows a simple procedure and one-stop service that covers investment and financing activities;
  • ·
    Offers a variety of financing channels to meet varied customer requirements;
  • ·
    Saves financing costs and locks up bond yields for the borrower.
Note:
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.