Name
Four seasons foreign exchange wealth management products
Introduction
The "Four seasons" products are constituted by a series of forward interest agreements with fixed time-limit and coupon yield. The value date is March 15 (for spring series), June 15 (for summer series), September 15 (for fall series) and December (for winter series), and that's where the name of the "Four seasons" wealth management products comes from. Each series has two kinds of VIP customer preference. This business provides USD series products. (currently only USD-production in Beijing). Product representation method: "A08 spring three-year" refers to a product agreement with the interest date starting from March 15, 2008 and the holding period of three years. Other product agreements are by parity of reasoning.
Product subscription: Investors can subscribe this product five working days (included) before the value date after the release date.
Product redemption: Five working days (excluded) before the value date after the release day, Bank of China will publish the redemption price on the first working day (9:00-14:00) every week . During the period between the value date and the maturity date , Bank
Product promotion: The "Four seasons" A-series products are under promotion in Shanghai, Beijing, Zhejiang, Fujian, Jiangsu, Sichuan, Guangdong, Tianjin and Shenzhen.
Our Advantages
Strong liquidity: The publication of redemption price provides a channel to quit the financial agreement for the investors who are in urgent need of money. Investors may redeem the financial agreement at the interday redemption price. The redemption price is calculated according to the change in international market, thus the investors may have not only the interest income from wealth management products but also potential opportunities to make profits with the principal when the market is beneficial.
Simple compositions and reliable profits: This "Four seasons" wealth management products take forward value date and flexible tenor as the major features. Customers may redeem the product at the redemption price periodically.
Flexible subscription way: these products may be subscribed in cash or with term deposit account of Bank of China, or one product of "Four seasons" may be purchased by pledging another product.
Investors could combine the products flexibly: The products enable investors to subscribe a product with another within the "Four seasons" series wealth management products, therefore investors may hold several "Four seasons" financial contracts with different value dates and holding periods according to their judgment on the economic cycle and macro-policy on the interest rate of the United States. The combination could be innumerable to satisfy the requirements of customers at different levels.
The products include four series: spring, summer, fall and winter. According to the different investment term, each series is classified into six kinds of products by investment tenors: three-month, six-month, one-year, two-year, three-year, and five-year. Moreover, one-month and two-month series are added.
Target Customers
Natural persons with full civil capacity and have opened a current all-in-one account in Bank of China. (The legitimate guardian may act on behalf of the under-age deposit holder.) People with foreign nationality might subscribe as well.
Process
Customers are required to sign the Agreement on Product; Customers fill out an application on product subscription entrustment, sign agreements, and provide trading certificates.
Required Documents
Valid personal identity documents.
Risk Disclosure
The risk lies in that the investors have locked in a forward interest rate at the subscription day, thus they have to make their own judgments on the fluctuation of US interest market from the subscription date to the value date.
Interest rate fluctuation in the USD market will affect the premature redemption price of the financial contract. Therefore, a premature redemption may lead to marginal loss of principal as well as the possibility to make profits.
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