Product Profile

Types: repurchase and buy-out.

Credit asset purchase under repo agreement: CMB purchases from other financial institutions the undue credit assets which are proprietary, compliant and within their business scope, the full amount of which is to be unconditionally repurchased by financial companies on pre-agreed price and date.

Credit asset purchase under buy-out agreement: CMB buys out from other financial institutions the undue credit assets which are proprietary, compliant and within their business scope.

Product Advantages

ü      A source of relatively long-term funding to financial institutions;

ü      Higher return on capital through rapid turn-over of assets;

ü      A means to adjust asset scale and optimize asset structure when needed;

ü      Simple and convenient business procedures.

Service Flow

Credit asset purchase under repo agreement

（1）   Taking financial institutions’ needs in consideration, CMB grants credit line to them after due diligence check.

（2）   Two parties agree on the object of credit asset purchase and the major factors such as amount, term, interest rate, etc., and reach consensus on cooperation.

（3）   CMB accepts from financial institutions documents such as business application form, and the lending contract of the credit assets involved etc., and the two parties sign credit asset purchase agreement after verification completed.

（4）   CMB transfers funds as agreed to financial institutions.

（5）   Financial institutions repay funds to CMB after the credit asset transfer agreement expires.

Credit asset purchase under buy-out agreement

（1）         The two parties agree on the object of credit asset purchase and the major factors such as amount, term etc., and reach consensus on cooperation.

（2）         Financial institutions present basic documents of the credit asset to be transferred to CMB, and CMB conducts due diligence check and verification on the credit asset.

（3）         The two parties sign agreement of credit asset purchase. As stated in the agreement, financial institutions will assist CMB in customer notification and completing legal procedures such as change of asset collaterals.

（4）         CMB transfers funds as agreed to financial institutions.