BOCOM

Personal Forex Wealth Management. Foreign Exchange Kit

1. Definition
“Foreign Exchange Kit”, technically known as personal foreign-exchange trading (binding offer) transactions, is a form of transaction mode, by which individual customers conduct exchange transactions involving different currencies with capital settlement carried out simultaneously, in a particular time frame specified by BOCOM, via bank counters, telephone , self-service terminals and internet banking.
2. Features
BOCOM “Foreign Exchange Kit” transaction methods cover instantaneous trading, listed trading and entrusted trading through telephone, counter, self-service terminal and internet banking transactions, and the customer’s greatest convenience.
3. Currencies
USD, yen, HKD, British pound, euro, Swiss franc, CAD and AUD.

Structured Deposit

1. Definition
“Structured Deposit" is designed as a new transaction tool for the integrated currency market, and as a high-value investment product provided to customers. Individual customers signing a contract with BOCOM are eligible to purchase structural deposit products from the bank as agreed, following which BOCOM will issue an interest payout to the customer at a predetermined rate, while reserving the right of contract termination.

2. Features

• 100% guarantee of the initial capital and its risk-free maintenance;
• Prompt dividend payouts; investment returns are paid every three months, at an interest rate as stipulated in the contract;
• High returns: Investment returns are obviously higher, compared with interest yields from foreign-currency time deposits of the same period;
• Low threshold: Customers only need to pay a small sum in US currency to initiate the investment.

3. Currencies
USD, yen, HKD, British pound, euro, Swiss franc, CAD and AUD.

Personal Savings In Local And Foreign Currencies

• Time deposit of fixed amount and period: With a minimum deposit amount of RMB 50, the maturity terms of RMB time deposits are 3 months, 6 months, 1 year, 2 years, 3 years and 5 years. For foreign-currency time deposits, a lump-sum deposit can be made in the form of deposit slips or through an “all-in-one” passbook or a Pacific Card. Maturity terms of 1 month, 3 months, 6 months, 1 year and 2 years are offered. Foreign-currency time deposits are available in a range of foreign currencies including USD and HKD.
• Time deposit of irregular savings and lump-sum withdrawal: The minimum deposit amount for this fixed monthly deposit is RMB 5. Maturity terms include 1 year, 3 years and 5 years. The deposit amount is determined by the customer. As deposits are required to be made on a monthly basis, any omitted monthly installment must be made up for in the subsequent month. Otherwise, interests will be accrued, at a rate based on the actual savings and actual deposit period, upon withdrawal.
• Education savings: Catering to the future education needs of students at Primary 4 and above, the plan can be customized around individual financial needs with a flexible savings period. Customers are given full autonomy to determine the total deposit amount, at an attractive interest rate along with tax-free advantages.
• Installment withdrawal of interest on fixed deposit: If you have a considerably large sum of idle cash at your disposal, make a lump-sum deposit and enjoy the benefits of monthly interest payouts, while your entire principal is kept safely intact. Further arrangements on the principal can be made upon maturity. Pioneered by Bank of Communications, this product offers you an ideal option to save up your principal, as you withdraw interest on a regular basis.
• Current deposits: The minimum sum of deposit is RMB1. With a passbook issued by the bank, you are free to make further deposits or withdrawals at any time you wish.
• Personal call deposits: With a minimum of RMB 50,000, the deposit can be made in a lump-sum and withdrawn by intervals. When opening this account, customers are required to provide their valid identification documents and if they choose to be given a confidential password, they will be able to conduct cash withdrawals through our ATM network. It is necessary to give a day or seven days’ notification prior to withdrawal every time. On every such occasion, the amount of withdrawal must not be less than RMB 50,000. If the customer makes a cash withdrawal after notification, the interest will be accrued at an interest rate of one or seven days’ call deposit.
• Integrated current and time deposits: When opening an account, you may choose not to specify a term for your deposit. Deposits may be made in a lump-sum, with a minimum of RMB 50, and the entire sum can be withdrawn any time.

Transfer Of Receivables
Definition
Receivables transfer refers to the fund-raising convenience offered by BOCOM, through receivables transfer, to help alleviate cash-flow inadequacies facing the customer promptly as a result of an increase in receivables. During the transfer period, the transferor (seller) entrusted by BOCOM is responsible for calling on the transferred receivable transfers from merchandize purchasers. If BOCOM is unable to retrieve the full amount of receivables before the deadline, the transferor shall buy back the uncollected balance portion unconditionally.
Salient features

• Timely retrieval of funds, this avoids cash-flow shortages caused by the company’s credit extensions
• Improvement of the company’s financial status, with its asset liquidity enhanced.
• Provision of convenience for company’s credit extensions.

Application criteria

Eligibility criteria for transferor

• Preferably a quality BOCOM customer with a credit rating above AB;
• Good business operation, with a stable market for its products;
• Meets BOCOM’s requirement as a borrower with guarantee-exemption
• Providing bona-fide documents on one’s financial status, business conditions, catalogue of purchasers; names and credit-standing as required by BOCOM.
• Transferor has opened a settlement account at BOCOM.

Eligibility criteria for receivables acceptable to the bank

• Receivables arising from product transactions carried out by transferor through credit extensions;
• Receivables arising from legal, bone-fide, dispute-free product transactions;
• Transferor has signed a sales contract with buyer, with proof of sales invoice and delivery certificates generated under the contract.
• Receivables that, in principle, have been generated in the recent 30-day period.

Application procedures
Besides providing the documents for a loan request to BOCOM for working capital, the transferor is also required to complete the following procedures:

• Submit an application for receivables transfer together with a detailed checklist of receivables;
• Submit the original and duplicate copies of the sales contract, together with proof of commercial invoices and delivery certificates for the receivables;
• Submit basic information, including credit rating, of the merchandise purchaser;
• Upon BOCOM’s approval, a “Transfer of Receivables Creditor’s Rights” agreement will be signed with the transferor;
• Within three working days upon signing the agreement, the transferor is required to submit an original copy of “Notice of Receivables Transfer” to the buyer, with a duplicate copy to be submitted to BOCOM for custody.