CCB’s fixed rate housing loans recently won 2006 Outstanding Service Award for Personal Housing Loans in the appraisal of 2006 China Financial Billboard. The award was elected based upon the comments of experts and the voting results of the netizens. This award is another proof of CCB’s strength in the field of personal housing loans in China.

Since the end of 2004 when the central bank increased the interest rate of housing for the first time, there is almost universal expectation for the increase of interest rate in the market. The borrowers are paying more attention to the risk of fluctuating interest rates. As the first commercial bank in China to introduce personal housing loans, CCB has been adhering to the customer-centric philosophy. While striving to satisfy the needs of customers for diversified and personalized housing loans, CCB strengthened the research and development on personal housing loans. In early 2006, CCB introduced fixed-rate housing loans in Shenzhen Branch on a pilot basis for Shenzhen Branch enjoys a good market environment and has rich customer resources, strong innovation ability and powerful business management. In April 2006, the product was promoted throughout China. The interest rate of fixed-rate housing loans will not fluctuate with the adjustment of interest rates by the central bank or the change of the interest rate in the market within the agreed period of time. This product was well received by the customers. It represents not only the innovation ability of CCB in the field of housing loans but also the ability of CCB to guarantee the benefits of customers and adapt to the needs of customers.

It is reported that one of the basic features of fixed-rate housing loans is to avoid the risk of interest rate increase. CCB’s fixed-rate housing loans have the following features. First, a flexible combination of interest rates. There are three options, 3-year, 5-year, and 10-year fixed rates. The borrower may select one fixed rate during the borrowing period, the combination of the three different fixed rates, or the combination of fixed rate with floating rate. The borrower only needs to identify the first term of the fixed rate. When the term expires, the borrower may then decide on how to repay the remaining loans (the floating rate, 3-year, 5-year, or 10-year fixed rates). Second, light burden of interest payment. CCB fixed up a low fixed rate for the housing loans. For instance, if the borrower selects a three-year fixed rate, he does not need to pay as much as he needs at a single floating rate. Third, low risk. The product may help the borrower avoid the risk of fluctuating interest rates, lock up the borrowing cost, and precisely calculate the financial expenditures.

Founded in 1996, Hexun (www.hexun.com) now is ten years old. Hexun is among the first group of professional ICPs. China Financial Billboard was a large-scale appraisal event initiated by Hexun and China Securities Market Research and Design Center. Three events have been held. The appraised agencies include 95% of Chinese financial institutions in stocks, futures, banking, insurance, foreign exchange and other major financial businesses. The awards are all selected by voting via the Internet. There are an accumulative total of over 1 million persons participating in the past three appraisal events. For the third China Financial Billboard, the number of voters reached a record high of 700,000. A new record of 1.5 million voters was born in 2006 for the fourth event.