Product Profile

Bank bond Express means the settlement agent and investment consultant services for RMB bonds. It refers to the services that CMB as the approved settlement agent accepts the commissions from financial institutions, undertaking the bond settlement of transaction and bond investment consultancy, including:

¨       Financial institutions clients conduct the account opening, account canceling and other related procedures for bond custody in Government Securities Depository Trust & Clearing Co. Ltd.

¨       CMB will provide the following services for financial institutions according to the instruction given by the financial institution, including bond pledged-type repurchase, bond buy-out type repurchase, physical form of bond transaction and other related settlement procedures.

¨       CMB also provides the cash services for bond interests and principals.

¨       CMB will undertake the portfolio investment management for the company fund via interbank bond market and money market under the authorization given by financial institutions.

¨       CMB can also conduct other transaction and settlement procedures approved by the People’s Bank of China.

Product Advantages

ü          Profitability: Stable earnings from bonds with smaller price fluctuation brings a better return for investors.

ü          Safety: the types of securities circulating within the interbank bond market are mainly national debts which are guaranteed by state credit, policy financial bond, as well as enterprise bonds and corporate bonds with high credit rating, therefore low credit risk is involved.

ü          High liquidity guarantee: investors can finance through repurchase transaction or sales of bonds to CMB. 

ü          Convenient Operation: CMB has developed its own transaction system for clients and provided inquiry service in online-banking. Customer can deal with bond transaction online anywhere.

ü          High efficiency of service and good reputation within banking industry: CMB has been ranked number one on number of account opening for bond settlement agent service in the last three years, as well as the transaction volume.

Service Flow

（1）   Clients from financial institution entrust CMB to open Class C account for bond trust. The following documents are required to be signed: agreement of RMB bond settlement agent, agreement of interbank bond repurchase within domestic bond market, account opening application for Class C bond custody, agreement of bond investment consultant and other related document.

（2）    

A.       Bond bidding: an “acknowledgement of bond bidding agent” needs to be signed by the financial institutions. CMB accepted the commission to bid the bond in the primary market for financial institutions after checking the seal and test key.

B.       Buying and selling of bonds: CMB accepts the commission to buy and sell the bonds in the secondary market after the financial institution signing the “acknowledgement of buying and selling agent”.

C.      Pledged repurchase: CMB embarks on the financial business of pledged-bond repurchase for financial institutions after the “acknowledgement of pledged-bond repurchase agent” has been signed.

D.      Buy-out type repurchase: clients sign the acknowledgement of buy-out type repurchase agent of bond. CMB accepts the commission to finance the business through repurchase of buy-out type bonds.

E.       Forward trade: clients fill in the “acknowledgement of forward bond trading agent service” with margin no less than 30% of transaction. CMB accepts the commission to commence the forward trade of bonds.

Bond investment consultant: financial institutions sign the “Agreement of bond investment consultant” and entrust CMB to operate the company’s fund within the interbank bond market and money market. Financial institutions receive the margin money under the prior agreement. The investment risk is totally transferred to banks.