CCB is one of the first pilot banks issuing the savings bonds. According to the treasury bonds issuance schedule of the Ministry of Finance, CCB will formally launch the agency issuance of savings bonds (electronic) from July 1, 2006 and issue the first phase of savings bonds (electronic) of 2006.

The first phase of savings bonds has a fixed annual interest rate of 3.14% and fixed term of 3 years. The nationwide maximum issuance amount is RMB15 billion and the issuance will last from July 1 to 15, 2006 (including holidays). The value date starts from July 1, 2006 and interest will be paid on July 1 annually. On July 1, 2009 the principal and the last interest will be paid.

Compared with other investment products, the savings bonds (electronic) have the following merits:

1. Government credit and safety

Since the savings bonds (electronic) are national treasury bonds issued by the Ministry of Finance on behalf of the Central People’s Government and guaranteed by government credit, upon maturity the Ministry of Finance will pay the principal and interest and the product enjoys the highest credit rating and safety.

2. Flexible redemption and sound liquidity

Despite of being non-negotiable, the savings bonds (electronic) can be redeemed in advance at the original issuance bank outlet within the prescribed period of time. Investors of savings bonds (electronic) with variable term can terminate the investment application within the prescribed period of time. If the investors need minor credit, the savings bonds (electronic) can be pledged for loans.

3. Tax-free interest and stable yield

The savings bonds (electronic) have fixed interest rate without personal income tax being charged. The issuance interest rate of the product is higher than the post-tax interest income of the savings deposits with the same term. Before maturity the product has stable face value and generates interest naturally as time goes by without the risk of price fluctuation.

4. Easy to buy

Investors can buy the savings bonds (electronic) at the business outlets of CCB nationwide and apply for the business of processing the purchase and redemption of the product at any networked outlet of the bank. The efficient and safe securities system of CCB makes the purchase easy and convenient.

Due to limited amount of the product, the principle of early bird is applied for the sale of the savings bonds (electronic). Therefore potential investors should hurry up. Investors can start opening the account at CCB business outlets from June 26.

Up to now CCB has been fully prepared for the agency issuance of the savings bonds (electronic) in terms of system support, staff training, marketing and promotion and customer services. Soon investors will be able to buy the product at the almost 14,000 CCB outlets nationwide except in Tibet. For more details please dial the CCB customer service hotline 95533.