Introduction
"Credit garden" is a foreign exchange wealth management product composed of a series of wealth management contracts with fixed maturity date and coupon yield, added by credit derivatives. The ultimate yield and principal repayment are linked with credit risks of the credit body to increase the product's coupon yield. In naming a product, different flowers are used to describe the linked credit bodies. The credit bodies linked with wealth management contracts will be picked out from famous domestic institutions or enterprises that issue bonds abroad.
Interest rate is calculated two days after the subscription (T + 2), and redemption is allowed from the value date. Between the subscription start date and end date of each contract, customers could subscribe the wealth management contract at the price published by Bank of China; after the contract subscription and value date, customers could sell the contract at the price published by Bank of China on the date designated by Bank of China.
Category
Categorized according to customers' demands on capital liquidity and profitability: Credit garden foreign exchange liquid wealth management series and credit garden foreign exchange flexible wealth management series.
Features
I. Features of credit garden foreign exchange liquid wealth management series
1. Structural standard. With fixed maturity date and floating coupon yield, the product is similar to a common floating interest bond contract linked with the interest rate of foreign exchange current deposit of Bank of China.
2. Super liquidity. The product can be redeemed at the nominal par on any day within the stipulated redemption period (provisionally 30 workdays before the maturity date of agreement), so customers' different liquidity demands could be satisfied.
3. Flexible period. Since the maturity date of each contract is fixed and the bank publishes the subscription price every day, the remaining wealth management period of the contract will change with the time. Meanwhile, new contracts will be released continuously.
4. No subscription fee or redemption fee. When subscribing and redeeming the wealth management product, customers only need to transact at the published contract price, and no extra subscription and redemption fees are required.
II. Features of credit garden foreign exchange flexible wealth management series
1. Structural standard. With fixed maturity date and floating coupon yield, the product is similar to a common floating interest bond contract linked with the interest rate of foreign exchange current deposit of Bank of China.
2. Good liquidity. The product can be redeemed once every three month after the value date.
3. Flexible period. This series includes wealth management contracts with different terms, provisionally ranging from one year to ten years. Additionally, since the maturity date of each contract is fixed and the bank publishes subscription price every day, the remaining wealth management period of the contract will change with the time. Meanwhile, new contracts will be released continuously. Customer could choose subscription time and subscription price to meet their wealth management demands.
4. No subscription fee or redemption fee. When subscribing and redeeming the wealth management product, customers only need to transact at the published contract price, and no extra subscription and redemption fees are required.
Threshold Amount
USD 800,000
Target Customers
Small and medium sized enterprises
Interest Rate
Please refer to relevant product manual.
Process
1. After reading and understanding the product information and having transaction intention, the customer shall first sign Product Agreement with Bank of China;
2. Every time conducting the transactions of "credit garden foreign exchange wealth management product", customers shall, at that day, fill out the power of attorney for trading of each transaction according to transaction details;
3. Once the transaction is confirmed to be completed, customers must ensure that relevant capitals are in place;
4. On the settlement date upon the maturity of trading, customers are entitled to investment returns and principal of the product according to transaction terms.
|
