FOF (Fund of Funds) RMB Trust Wealth Management Product to Be Introduced Soon

To better satisfy the demands of customers for wealth management, CCB will introduce to the market RMB Wealth Management Product XI - Lideying on March 26. Lideying is jointly designed by the first-class wealth management teams and CCB Principal Asset Management Co., Ltd. and targeted at open-end funds. CCB was the first bank among the major 5 commercial banks to release the open-end fund wealth management product.

It is reported that the fund will be mainly invested in the open-end funds for securities investment (including ETF and LOF) legally issued in China. The investment portfolio includes IPO shares (issued online) and convertible bonds. The product will adopt universally accepted CPPI technology to adjust the proportion of various assets in the investment portfolio in a dynamic way and control the investment risks from the perspective of assets allocation. CCB will adopt the operational strategy of buying in and holding selected quality funds and rebalancing the funds on a regular basis for risk mitigation.

The term of this product is one year with the expected annual RoI of 10%. There is neither cap nor threshold for RoI. It is a type of non-principal-guaranteed floating RMB trust wealth management product. The minimum amount of subscription is RMB50,000. It has no additional features like pledge. To protect the benefits of the investors, CCB has the right to terminate the agreement in advance in case of major changes in the national financial policies that affect the normal operation of this product.

It is expected that this product can bring certain benefits to the customer. However, this product is mainly targeted at open-end funds. CCB hereby would like to remind the investors that the market is unpredictable and the investors shall bear risks related to the fluctuation of the market.