Introduction
Four seasons forward belongs to Bank of China corporate planning product series specially aiming at corporate customers. It is a corporate wealth management product made up of a series of forward interest financial agreements with fixed terms and coupon yield. The prospective value dates of the series are mainly set on March 15 (spring series), June 15 (summer series), September 15 (autumn series) and December 15 (winter series), so it is called "four seasons forward".
Features
1. Transparency: standard contract, simple structure, clear risk, easy to understand;
2. Flexibility: with dynamic investment concept incorporated into the product, customers could determine the trading products and trading terms according to their own demands and market trends, and portfolio investment is also available;
3. Profitability: in addition to principal guarantee by holding to maturity, customers also have the opportunity to profit from bid-ask spread;
4. Liquidity: product trading is provided with bilateral offers, and customers could purchase or sell at any time within a certain period, so it has more liquidity than ordinary capital management products.
Currency
USD
Term
Three months, six months, one year, two years, three years and five years. Additionally, to maximize the utilization of customers' capitals, our bank also provides the term of one or two months irregularly before the value date so that customers could choose and form a portfolio at their own discretion.
Threshold Amount
USD 500,000 (i.e. 5,000 shares), without upper limit. Share subscription is adopted in product subscription. On the issue day, customers could purchase the product at face value (USD 100/share), and then they could subscribe for and redeem the product at published subscription price and redemption price respectively till five workdays before the value date.
Interest Rate
Please refer to relevant Product Manual.
Target Customers
Small and medium sized enterprises with low risk-bearing capacity and enterprises requiring the allocation of low-risk and high-liquidity products in their capital baskets.
Application Qualifications
Profitable companies and enterprises with single transaction amount above USD 500,000.
Process
1. After reading and understanding the product information and having transaction intention, the customer is required to sign the master agreement on trading with Bank of China. Subsequently, the customer only needs to fill out the power of attorney for trading and provides the capital trading account every time they purchase or sell the product;
2. When selling the product, the customer shall fill out the power of attorney for trading (sale trading) and provide the original power of attorney for trading (purchase trading) to propose sale application to the original purchase outlets;
3. In case the customer uses deposit confirmation letter or the undue four seasons forward product as pledge to purchase another four seasons forward product, he/she is also required to provide relevant trading certificate.
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