Entrusted wealth management products
1. What is a bank’s wealth management product?
A bank’s wealth management product refers to the fund investment and management
program that is designed for and sold by a commercial bank to specific target customers
after analyzing customers groups.
The bank wealth management products are classified into the following products:
principal-protected, non-principal-protected, estimated fixed-yield, and estimated
2. Three steps for purchasing bank wealth management products
Step 1 - Formulate a rational wealth management plan.
Before buying a wealth management product, an investor must be clear that risks
do exist, the level of which depends on the investment object of the corresponding
product. If an investor seeks a yield above the risk-free level, i.e. risk premium,
he or she must be prepared for no return at all or, in the worst case scenario,
losing the principal. The declared estimated rate of yield of a bank wealth management
product is the reference yield rate estimated by the bank based on the previous
performance of the investment object and an evaluation of the future market, and
not on a promised yield rate. Whether the expected yield can be achieved for a product
depends on a number of factors such as market performance and how the investment
product is operated.
The investor evaluates the risks he/she is prepared to take, expected yield, and
personal liquidity before selecting an appropriate product. This aims to maintain
a balance between structural and liquidity investments based on full planning.
Step 2 –Select a Bank Wealth Management Product
This is the most critical step involved in selecting an appropriate bank wealth
management product. Either through your own analysis or through the analysis of
others, you need to understand the features of a product before you buy it; for
example, you need to know whether the investment or linked object corresponds to
the money market, bonds, trust loans, gold, the petroleum price, stock indices,
or foreign funds. You should select investment objects that you are familiar with
so you fully understand the related risks and returns.
Step 3 Read the Term Sheet
When you buy a bank wealth management product, you must carefully read the related
term sheet and especially understand the risk warning. If you have any questions,
please consult the customer service for wealth management of the Bank.
3. Which products can be pledged?
The entrusted wealth management product pledge loan is a personal loan granted with
the monetary funds that the customer entrusts to the bank for wealth management.
In this case the bonus income serves as collateral. The bank wealth management products
accepted as collateral varies between banks. Currently, China Merchants Bank allows
clients who have bought principal-protected or partial principal-protected personal
entrusted wealth management products to apply for personal loans by pledging their
wealth management products providing they meet other related conditions. The term
of credit is no longer than the maturity date of the pledged wealth management product.
"Sunflower" Series Wealth Management Products of China Merchants Bank
1. “Sunflower” Daily Wealth Series
The Sunflower Daily Wealth Series investment programs are suitable for investors
with high security and liquidity demands and for investors who are seeking short-term
prudent wealth management during the interval between the terms of other programs.
Security100% principal protection: These are low risk products that are invested
using interbank financial tools based on a high credit rating and high liquidity.
Liquidity: “T+0”transaction: During the trading hours of each business day, investors
can purchase and redeem a product at any time for the duration of that product,
and the funds are immediately transferred to the customer’s account.
Yield: The estimated rate of yield of the Daily Wealth Series is higher than the
interest rate of a demand deposit in the respective currency.
Zero commission: No commission is charged for purchase and redemption to maximize
Multiple currencies: CNY, USD, HKD, GBP, EUR and AUD are available for investment.
A large-amount redemption clause applies to the Sunflower Daily series of products.
If the net redemption amount of a program exceeds 30% of the previous day’s balance
within any business day during the term of the program, this is regarded as a large-amount
redemption in which case CMB can reject a redemption request.
2. Sunflower Carefree Series
The Sunflower Carefree Series wealth management products are based on low risk and
stable returns. Investors can receive a relatively high return without worrying
about losing the principal.
This series is suitable for investors with low risk tolerance.
Low risk: The products are invested in high-security interbank bonds with a high
credit rating, notes, or short-term financing bonds.
Liquidity: These are delivered as fixed-yield products with various terms ranging
from one month to several years and cannot be redeemed before the maturity date.
The products with an express principal protection clause can be partially pledged
at a certain percentage to enable investors to obtain a credit facility.
Stable return: The rate of yield is higher than the interest rates for deposits
in the same currency for the same term. The yield is paid on maturity or by schedule
according to the term sheet. They are the preferred alternative products of time
Zero commission: No commission is charged to maximize your investment return.
Multiple currencies: CNY, USD, HKD, GBP, EUR and AUD are available for investment.
3. Sunflower Focus-Linked Series
For investors who seek high yields but are worried about losing their principal,
China Merchants Bank has released the Focus-Linked series of wealth management products
in both CNY and other currencies. These are linked to the market performance of,
for example, interest rates, exchange rates, stock prices, funds and commodity prices
in basic markets and derivatives markets. Investors are given the opportunity to
receive high profits while having an agreed proportion of their principal protected.
The Sunflower Focus-Linked series of wealth management products suits investors
who require high principal security but can tolerate fluctuating investment returns.
Security: The principal-protected technique protects an agreed proportion of the
principal investment while the derivatives used to invest in the financial market
make it possible for investors to earn high returns. Once the income payment conditions
specified in the terms sheet are met, investors can receive the specified high yield
and recover their principal.
Liquidity: The products in this series cannot be redeemed before the maturity date
but they can be partially pledged at a certain percentage to enable investors to
obtain a credit facility.
The products in this series are subject to a clause covering (partial) principal
protection; that is, the principal is protected to an agreed extent upon maturity.
If investors request to terminate the program before the maturity date, agreed principal
protection may not be possible.
4. Sunflower New Share Purchase Series
If you use your own money to buy shares, the allocation rate is very low and you
have to monitor the new shares issued each day. The CMB New Shares Purchase series
of products helps you easily acquire an average return of investment from purchasing
The products in the New Share Purchase scheme invest in new shares. Currently, CMB
offers multiple wealth management products for new shares, including the products
focused on a single new share, new shares issued within a month, and products with
Due to hedging opportunities between the primary and secondary markets of new shares,
the risk in investing in new shares is comparatively low. This series is suitable
for prudent investors.
Security: The products in this series are mainly invested in new shares. Some of
the products can be invested in quality credit assets, bond funds, and money market
funds by using unused money to purchase new shares. These products are not principal-protected
but the risks are relatively low.
Yield: Normally, the yield is higher than the Carefree series of CNY wealth management
products; however, the yield is sensitive to the frequency of newly issued shares,
the allocation rate of new shares, and the secondary market.
Liquidity: Some products are periodically open for redemption.
5. Sunflower Treasure Series
The Sunflower Treasure series of wealth management products are invested in a range
of objects. These include projects, assets, and equity via joint investment with
a trust company.
This series enjoys low risk and stable returns, and is suitable for prudent investors.
Security: This series is invested in the quality credit assets of banks or trust
assets and features high security.
Liquidity: Normally, this series is not redeemable before the maturity date.
Yield: The estimated returns of these products are stable, and the estimated yield
are higher than the interest rates of same-term deposits or treasury bonds. They
are excellent stable return wealth management products.
6. Sunflower A-Share Value Digging Series
The Sunflower A-Share Value Digging series of products are invested in domestic
funds and shares. Our professional investment consultants help you pick the best
shares to maximize investment returns at favorable charge rates.
This series suits aggressive investors with high risk tolerance.
Security and yield: This series invests in high performing funds, new shares, convertible
bonds, warrant bonds, and other bonds. With the principal unprotected, this series
features high risk and an estimated yield.
Liquidity: This series is open and periodically redeemable.
7. Sunflower Overseas Treasury Series
The Sunflower Overseas Treasury series of products invests in overseas markets.
Currently, other than QDII products linked to a single well-performing foreign fund,
we have also developed an active QDII product.
This series of products are created for domestic investors who look for investment
opportunities worldwide to internationalize their investment portfolio and diversify
risks. It suits aggressive investors with mature investment ideas, a strong knowledge
of investment, and high risk tolerance.
Security and yield: These high-risk, high-yield products are invested in financial
assets in overseas markets, and are sensitive to the corresponding market fluctuations.
Liquidity: These can be purchased and redeemed on any open day with adequate liquidity.
As currency conversion affects funds transfers and clearing in and outside China,
the redeemed capital is normally available in the customer’s account within 8 to10
days of the redemption, depending on specific circumstances.
8. Sunflower Worldwide Investment Series
The Sunflower Worldwide Investment series of products are invested in shares listed
in securities markets both in and outside of China, e.g. A+H shares. At present,
this series is being developed
What to Buy? – Guiding Online Purchases
Once you have selected your preferred products, you can perform investment operations
such as purchases, subscriptions, and redemption through China Merchants Bank’s
Internet banking system. This makes the investment process extremely simple – all
you require is a valid All-in-one card.
Step 1 Risk appraisal
Before buying a wealth management product, investors must decide their risk profile
and expected yield. To help investors understand their own risk profile and select
products within their personal risk tolerance level, China Merchants Bank launched
the China Merchants Bank Personal Investment Risk Tolerance Assessment system in
The risk appraisal system enables us to fully understand your investment requirements,
and thus better advise you on your investment portfolio. The automatic control function
of the sales system prevents you from unknowingly buying products outside of your
risk tolerance – you just need to answer a few questions about yourself.
The results of the risk appraisal are managed dynamically and remain valid for one
year. During that year, our system compares the risk level with your profile for
any given product. If the risk level of a product you choose is above your set tolerance,
the system automatically prompts you. Once the results expire, the system prompts
you to retake the assessment based on your current situation so as to match selected
products with your updated profile.
Step 2 Purchase transaction
Internet banking (it is better to provide screenshots of online transaction to support
the description as shown in the fund purchase)
Login into China Merchants Bank internet banking (common or professional edition);
Click Investment Management to start the risk appraisal process. Then complete the
Personal Investment Risk Tolerance Assessment form. This will provide the results
on which you can base your decision to purchase a wealth management product. Generally,
the risk level of the wealth management product you buy should be equal to or lower
than your risk tolerance level.
If you have not previously purchased a wealth management product from China Merchants
Bank, please complete the risk appraisal process. After you take the appraisal,
go to the next step;
Click Investment Management – Entrusted Wealth Management – Product to select a
wealth management product. Clicking the product title directs you to details about
the product and the corresponding Term Sheet.
After reading the related Term Sheet, return to the previous page, click Buy for
the product(s) you have selected, and follow the prompts to complete the process.
If the system accepts your order, the following message is displayed: “Your order
has been successfully accepted.”
You can check information about your status or about orders under Current positions
and Current orders respectively.
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.