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Investment Fund Distribution

In December, 2001, with the approval of People's Bank of China and China Securities Regulatory Commission, Bank of China won the qualification of the open-end fund distribution. For the past seven years, Bank of China's distribution business has seen sustained, rapid and sound development, and in 2005 it witnessed further expansion of operations to the field of pooled wealth management plan of stock brokers. By the end of the 2007, Bank of China had been distribution agency for more than 130 Open-end funds of over 30 customers or stock broker's joint wealth management plan. Among them, the raised amount of Fortis Haitong Income Growth Fund reached 13.074 billion fund units, it become the first open-end fund with more than RMB 10 billion in China's fund market; Bank of China was the distribution agency for CITIC securities' pooled wealth management plan of risk-avoidance in early 2005, it was the first trial of domestic bank in distributing such kind of products, and it established a good market image; EFUND's product of Shenzhen 100 ETF distributed and entrusted by Bank of China in early 2006, was the first trail that bank participates in distribution of ETF product during the issuance; In 2007, Bank of China during the fund issuance distributed China's first innovative closed-end fund--Dacheng Selected Innovative Close-End Fund etc., which further show the distribution capacity and innovative spirit of Bank of China.

Under the guidance of insisting on market issuance, focusing on customers, providing customers with good services of wealth management, abiding by the principle of equality and mutual benefit, win-win relationship, Bank of China established good cooperative partnerships with a number of fund management companies and innovative securities firms which is famous for their good brand, solid operation and development potential. Bank of China's distribution of open-end funds covers all varieties including stock type, hybrid type, bond type, principal guaranteed type, currency type, LOF type, ETF type, innovative closed-end funds, QDII, to meet diversified investment needs of customers.

While developing together with the fund industry, Bank of China is committed to regulating all fund distribution behavior, strengthening risk control, carrying out  legitimate organization of fund distribution, actively cooperating with relevant regulatory authorities in their work, strict self-discipline, maintaining the long-term interests of the industry and customers, so as to promote the long-term and sustainable development of fund industry. 

In expanding fund distribution business, Bank of China summarizes experience and refer to foreign advanced marketing models, and gradually formed the features and core competence of Bank of China's fund distribution:

First, ideas and strategies of developing together with customers. Bank of China is devoted to establishing long-term strategic partnership with quality fund management companies and securities companies, to provide high-quality, efficient, durable one-stop service; Also, it is devoted to an all-around and complete cooperation with fund management companies in such aspects as product design, marketing programs, after-sales service, while fully reflecting the customer's investment demands for funds and stock broker's joint wealth management plan.

Second, nationwide network of sales and service. Bank of China, now can provide distribution services via 32 branches over 460 cities over 10,000 outlets in China, and present customers with appropriate distributed funds and stock brokers' pooled financial products via the financial center, while providing differentiated financial advices, so as to achieve the organic integration between the financial services and distribution services.

Third, high-quality customer base. During many years of operation, Bank of China has a number of quality customer groups with strong power, high integrated quality, strong consciousness of investment.

Fourth, marketing team with higher professionalism. Bank of China's internal entrust, corporate, retail, financial institutions, other departments were linked together for marketing, and it has a large number of practitioners of fund distribution with skilled operations, abundant knowledge of investments and wealth management as well as more experiences.

Fifth, institutionalization in investment customer service. The services provided by Bank of China to customers of funds and stock broker wealth management plan have achieved integration in customer development, customer maintenance and customer information feedback. Bank of China constantly improves the quality of its customer service via holding regular or irregular investment seminars for investment customers, providing consultation services, as well as providing customized services to major customer.

In addition, Bank of China is also actively devoted to establishing customer service platform, providing appropriate and convenient services to investment customers via various channels of financial center, bank outlets, e-banking.

List of  the open-end funds and stock broker's pooled wealth management products which are distributed by Bank of China
Deadline: January 25th, 2008