Product Profile

CMB transfers the proprietary premature credit assets (including loans and undue discounted bills) to financial companies or their associated enterprise groups and member companies. The credit assets transfer falls into two types: repurchase and sell-out.

Repurchase assets transfer refers to CMB transfers credit asset to financial institutions, with agreement to buy them back at the agreed date and price unconditionally from the financial institutions.

Sell-out assets transfer refers to that CMB transfer all the credit assets to financial companies without undertaking the repurchase obligation or guarantee for reimbursement. Sell-out assets transfer is constituted of conditional sell-out and unconditional sell-out. Conditional sell-out includes prior right of repurchase, assets transfer with warranty liabilities, and assets transfer without warranty liabilities but undertaking to repurchase the assets under certain conditions.

Particularly, for financial company clients, only credit assets from associated enterprises and member companies of financial companies can be transferred.

Product Advantages

ü          CMB provides assorted management services for receivable assets.

ü          Increase the return of idle funds.

Service Flow

（1）   CMB informs financial institutions of the details of the credit assets transfer. Both sides discuss the transaction price, period and method.

（2）   CMB provides copies of loan-related documents to financial institutions.

（3）   Two sides sign agreement of credit assets transfer, designating the transfer value, valid period, interests, rights and obligations of both sides. CMB provides assistance for financial institutions on related pledge-alteration and other basic legal procedures.

（4）   Transferred fund is paid to CMB by financial institutions.

（5）   CMB repays the fund to finance companies when the contract period for repurchase is due.