Service Profile
On-account bonds refer to government bonds, policy-oriented financial bonds, corporate financial bonds, central bank bills and other bonds that the central bank has permitted for trading on the national inter-bank bonds market.
With on-account Bond Hypothecated Financing Service, clients apply to the China Merchants Bank for financing services such as circulating fund loans, commercial bill acceptance, and establishment of L/C, which is on conditions that the applier agrees to hypothecate the on-account bonds that has been purchased by the China Merchants Bank by consignment of the applier, or by a third party.

Basic Qualifications for Service Appliers

1.	Enterprises, institutions and other economic organizations approved and registered by industrial and commercial administrative authorities (or their superior competent departments);
2.	With normal business operation, complete financial system, capable of repay principal and due interest on time, and good ban relations and reputations;
3.	Having opened basic deposit accounts or ordinary deposit account at the China Merchants Bank, with modest amount of settlement transactions;
4.	With on-account bonds held by the applier or a third party as hypothecation; hypothecated bonds will be lodged on the bonds trusteeship accounts in Category C that the China Merchants Bank opens in the names of hypothecation providers.

Service Operational Procedure

1.	The borrower submits a letter of application and pertinent documents to the CMB branch where it opens its account;
2.	The China Merchants Bank examines the borrower' s credibility as well as the hypothecation provider' s bonds trusteeship account and bonds trading status;
3.	After approval of the China Merchants Bank, the borrower and the hypothecation provider sign a contract, and register the hypothecation at the Central Government Bond Registration and Settlement Company;
4.	Release of loans or provision of other financing services.

Service Advantages
· Simple operational procedure, one-stop investment and financing service;
· Many ways of financing to meet clients' diversified demands;
· Lower financing cost for enterprises without scarifying bonds investment earnings.