As China Everbright Bank (CEB) maintains its leading position in wealth management by promoting innovative wealth management products continuously, it is about to launch another brand in the area of personal loan, so as to further boost its “pioneer” image in the industry. On April 10th in Beijing, CEB, known for its innovative spirit, held “Vision, Pioneer, Wealth – China Everbright Bank’s New Product Upgrade Promotional Conference”. At the conference, a special loan portfolio – “Sunshine Living Housing Loan Package”, and a new product – Sunshine Wealth Management Plan C were launched. In addition, CEB upgraded fixed rate housing loan which was first introduced to the Chinese market by it. The launchings and upgrading of the products brought new excitement to the domestic wealth management and housing loan markets.

The conference was of great scale, and participants included heads at the Head Office and its department levels, and numerous “big shots” of the banking industry and experts engaged in heated and interactive discussions. More than forty client representatives and reporters from over thirty news agencies were present.

At the conference, CEB introduced its new loan portfolio -“Sunshine Living Housing Loan Package” which derived from personal housing mortgage loan and was first launched onto the Chinese market recently by CEB. With the maximum term of thirty years, the loan mainly targets borrowers who wish to purchase first-hand housing and aims to meet their needs of housing, car, parking garage, as well as home-decoration and other large-denomination durable commodities. This loan effectively expanded the scope of service, making another important breakthrough in personal credit business of CEB.

As explained by the head of the relevant department of CEB, immediately after purchasing a house, especially within two years after purchase, borrowers may be short of money because of the demands for car, parking space, large-denomination durable commodities and home-decoration. The most distinct characteristic of the loan portfolio – “Sunshine Living Housing Loan Package” is to provide borrowers with financial services packages on a mortgage of the first-hand house bought. Within the credit line, borrowers may use the loan in a revolving way. To best meet client needs, different combinations of maturity periods of loans have been designed, providing multiple options for clients to pay back loans. Repayments may be made anytime without time constraints.Furthermore, through fixed interest rate, floating rate and interest rate swap, clients can easily control interest-rate risks.

The Sunshine Wealth Management Plan C, launched by CEB, has also drawn wide attention and keen interest from clients who attended the conference. This brand-new credit linked product targets personal VIP clients; it is a structural wealth management product designed for renowned large state-owned enterprises with great potential and stable performance. While executing Plan C, if an enterprise is able to repay the principal plus its interest as agreed, investors would receive full return as well as the principal; on the other hand, if the enterprise fails to fulfill its repayment commitment, the principal provided by investors would suffer limited loss within the scope of debt recovery.

Relevant heads of CEB stated that the renowned domestic state-owned enterprises currently under Plan C are outstanding ones and have been carefully selected, with very low probability of breaching payback agreement. In addition, since Plan C bears certain investment risks, CEB will fully explain and reveal any risks involved, so that investors are fully informed and all the decisions are left to investors’ discretion.It is believed that the names of the renowned domestic state-owned enterprises were able to draw confidence from investors, helping them make the right judgments and reach full investment consensus.

Statistics indicate that in the first period, the expected annual return of Plan C is 2.52%, and general annual return usually lies between 2.80% and 3.00%. With innovative transaction options and higher return rate, Plan C will stimulate broad interest of investors, and further boost brand superiority of Sunshine Wealth Management in the wealth management market, bringing returns to investors.

Aside from Sunshine Living Housing Loan Package and Sunshine Wealth Management Plan C, CEB also introduced two special products: Head Office - Headquarter Engineering and Machinery Mortgage Loan, and the Upgraded Fixed Rate Housing Loan. In 2003, CEB took the lead in launching the Head Office - Headquarter Engineering and Machinery Mortgage Loan in the industry, featuring the signing of agreements between the Head Office of CEB and renowned enterprises in domestic engineering and machinery industry, initiated by the Head Office of CEB. In this framework, a financial service network may be established involving the Head Office and local branches of CEB, engineering and machinery manufacturers, and relevant distributors. CEB provides loans to natural persons who want to purchase engineering vehicles or machinery and are recommended by engineering and machinery manufacturers and/or distributors.

The Head Office - Headquarter Engineering and Machinery Mortgage Loan has three characteristics: firstly, partners are carefully selected. Partners of CEB are either internationally renowned enterprises that have branches in China or leading domestic engineering and machinery enterprises, including: Komatsu, Hitachi, Volvo, Sany, Zoomlion, Liugong, Kobelco and XCMG. Secondly, a chain management model is adopted, in which CEB selects manufacturers, the chosen manufacturers select distributors, and the chosen distributors select clients. This ensures active participation of all parties, effectively controlling risks incurred and realizing a win-win situation for all the parties involved: manufacturers, distributors, the Bank and buyers. Thirdly, on the basis of in-depth analysis of the engineering and machinery industry and products, the loan is secured by “a pledge of vehicles + manufacturer repurchase guarantee”. This is a convenient and straightforward model, and can effectively control credit risks of borrowers.

Survey shows that, as soon as the Engineering and Machinery Mortgage Loan was launched, it was approved of and very well received by the engineering and machinery market as a unique personal loan product. Currently, in the engineering and machinery industry, CEB has gradually become the first choice for majority of manufacturers and distributors. Within the industry, the product is been called “Everbright Model”.

At the conference, CEB also introduced Interest Rate Swap (swap between fixed rate and floating rate), the upgraded “Sunshine Living” fixed rate housing loan product. The product was first introduced to the market by CEB and designed to further “activate” the fixed rate market and maintain its leading position and innovative advantages. Clients who wish to swap from floating rate housing loan to fixed rate housing loan (including residential and commercial housing) would be charged no contractual penalty or service fees. Clients of fixed rate loans with duration of one year or more may also apply to swap to floating interest rate by paying a certain amount of contractual penalty. And clients of fixed rate loan with duration of five year or above would be charged no contractual penalty.

Aside from launching Interest Rate Swap, CEB has also added the three-year fixed rate housing loan as an additional type of loan to the fixed rate housing loan family. To all kinds of fixed rate housing loans on residential and commercial housing, interest rate range management has been applied. Preferential interest rates may be applied to quality clients. All of the preferential interest rates, 5.25% for three-year period, or 5.34% for five-year period and 6.08% for ten-year period, are lower than that of competitors thus have comparative advantages.

Industry experts have pointed out that, in response to clients’ needs, CEB has launched the Interest Rate Swap product so as to provide clients with flexibility in avoiding risks caused by interest rate fluctuation. The product makes it easier for clients to plan household expenditures, reduce borrowing costs and carry out family financing, hence promoting more clients to choose fixed rate housing loan, further expanding the market for fixed rate loan in the industry. It is known that after upgrading fixed rate housing loan by CEB, the fixed rate loan market has witnessed a rapid growth, and business volume has doubled in half a month. Currently, the fixed rate loan business of CEB has a client base of over 2000, with total loans over RMB200 million.

The year 2006 is bound to be a year of reforms and innovation for CEB. From fixed rate housing loan launched on Chinese New Year to Sunshine Living Housing Loan Package launched at this conference, from Sunshine Wealth Management Plan A, Plan B, Plan E and Plan A+ to Plan C launched today, and from wealth management to housing loan, on the path of business innovation, CEB has made successful headway and continues to march forward. CEB has not only strengthened its own sustainable and stable development, but also brought real benefits and convenience to its clients.