On January 11, spokesman of Bank of China (BOC) Wang Zhaowen briefed the press that following the products of overseas wealth management, wealth investment management and the uniform service in Asia Pacific areas of “BOC Wealth Management” launched in December 2005 by BOC, again, on January 12 BOC would launch its new products featuring structural principal-guaranteed investment products for foreign currency, which would be linked up with overseas stocks and share price index.
As Wang Zhaowen introduced, at present most wealth management products in China were linked with exchange rates, interest rates or fixed returns. The wealth management products for foreign currency to be launched by BOC this time was an innovation characterized by connection with overseas stocks or share price index, through which the investors could not only benefit from the principal guarantee, but also receive return from the growth of the quality stocks of Chinese enterprises listed overseas.
As China’s economy are experiencing a prosperous growth, the excellent performance of China’s stocks listed overseas have brought substantial returns to overseas investors; although the personal investor in China at present cannot directly invest in overseas stock markets, with the assistance of this new products to be launched by BOC, the investor can indirectly gain desirable returns from China’s quality stocks listed overseas.
According to Wang Zhaowen, to adapt to the investment requirements for different risk preferences of different customers, BOC launched 2 products for investment wealth management, linking up with basket portfolio and share index respectively. Type A products are foreign currency wealth management products of HKD. Stocks in the baskets linked are all of large state-owned enterprises listed in Hong Kong. The industries covered include crude oil, banking, insurance, telecommunications, etc. The 10 stocks to be linked with are PetroChina, Sinopec, China National Offshore Oil Corporation, China Mobile, China Unicom, China Telecom, Bank of China (Hong Kong) Limited, China Life Insurance Co., Ltd., Peoples Insurance Company of China and Ping An Insurance (Group) Company of China, Ltd. Up to January 4 of 2006, these 10 stocks had an average holding return as high as 95％ in recent 3 years. This product not only provides principal guarantee and 2% of minimum return guaranty every year, but also the potential annual rate of return that equals to the average annual return rate of the basket linked with. The maximum annual return rates can be up to 8％. Type B products are wealth management products of USD. The investment term of this product is only 15 months. The object to be linked with is Xinhua FTSE China 25 Index. This index consists of 25 companies that have maximum market value listed in Hong Kong (H -stocks and Red-chips). These 25 companies mainly are the leading companies in the fundamental industries such as oil, energy sources, telecom, bank, etc. Their performances have been closely connected with and also are benefited from the powerful increase of Chinese economy. The return rates of this product will not be set up with the cap, but 2％ of minimum guarantee will be set up. The new products launched by BOC are suitable for investors who have confidence in the future of Chinese large enterprises listed in Hong Kong, with medium even low risk bearing capacity but seek for opportunities of high returns.
The spokesman indicated that BOC possesses the professional wealth management brand of “Wealth Management of BOC” and the professional experience of hundred years of Chinese bank, the service network all over the world, senior wealth management experts and multiple investment wealth management products. With all these strength, BOC would continuously provide individualized and high quality special investment wealth management products and VIP wealth management service to the customers.
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