I. Introduction to “Money Produces Money A” Wealth Management Account

It is a kind of wealth management service offered by CMBC to its customers enabling multiple accounts on one card. It is an optimum combination of current account and lump-sum deposit and withdrawal. This service utilizes the advanced technologies of our bank to automatically shift the agreed percentage of deposited demand deposits into time deposits according to the package selected by the customer. It avoids repeated choosing between demand deposits and time deposits and the inconvenient operations, effectively raises the yield of deposits to achieve easy wealth management.

II. Features

(1) Intellectual account: according to chosen package, automatically shift demand deposits into time deposits to achieve easy wealth management;

(2) Individualized wealth management package: fixed package and customized package can be chosen freely;

(3) T+0 withdrawal facility: in ATM withdrawal, POS consumption and mortgage deductions, if your current account lacks sufficient balance, you can withdraw your money within the limit of your total balance in your wealth management account. If you refill the amount you used before our bank goes off business at the same day, our system will not require any compensation. Otherwise the system will automatically deduct from your wealth management account to refill the amount you used on the basis of less interest loss;

(4) Automatic re-deposits: when each sum of capital within the wealth management account becomes due, if settlement procedures are not handled in time, then the principal part will continue to be deposited for limitless times;

(5) Service is free: except that the bank will deduct and pay interest tax for you, no additional costs are to be paid;

(6) Low bottom amount: the minimum reserved balance for current account is RMB 2,000, and the integral part over the reserved balance in current account will be re-deposited automatically according designated package.

III. Application Process

IV. Warm Reminding

(1) "Money Produces Money A" Wealth Management Account application is limited to the holders of main CMBC debit card.

(2) Package program can be revised or cancelled. In revision, the deposit ratio will be re-arranged according to the new program since the date of revision; In cancellation, money of all wealth management accounts will be transferred into the current account with principal plus interests.

(3) Customers applied through online bank VIP version need to our branch in advance to handle the signing formalities for online banking.

V. Selected Case

Case 1

Mr. Zhang is a white-collar working in an enterprise with stable job and monthly income of 5,000 RMB yuan. After paying daily household expenses, he has a monthly balance of 3,000 yuan. According to previous practice, every three months Mr. Zhang will go to the bank counters personally to change the accumulated balance into one-year term deposit. When Xiao Li, one of our wealth managers, knows about it, he recommends our “Money Produces Money A” wealth management account and assisted Mr. Zhang customized the package as: the reserved amount for demand deposit is 2,000 yuan, and all left money is changed to one-year term deposit. After one year, Mr. Zhang made a calculation, besides saving many trips to the bank, his interest gain is 36.72 yuan more than before.

Case 2

One morning, Mr. Zhang called Xiao Li anxiously saying that he needs to withdraw 50,000 yuan before 10:00 A.M. to pay for the deposit to buy a hot-selling house, otherwise he may lose this opportunity. But in his CMBC card he only has 2,000 yuan of demand deposits and 80,000 yuan of “Money Produces Money A” managed amount, and that afternoon his company will give him a cash bonus of 50,000 yuan, Mr. Zhang hopes to be given a best solution. After knowing about the situation, Xiao Li told Mr. Zhang, “Money Produces Money A” wealth management account has the T+0 withdrawal facility allowing him to withdraw money within the limit of the total balance in his account. If he can refill the used amount before our bank goes off business at the same day, our system will not require any compensation so Mr. Zhang will not incur any loss. After learning about it from Xiao Li, Mr. Zhang was very glad, this facility not only satisfies his urgent needs, but also no loss of interest incurred.

I. Introduction to “Money Produces Money B” Wealth Management Account

This wealth management account is one of our value-added services designed for the customers who own a considerable sum of idle capital (more than 50,000 yuan) in domestic or foreign currency. It realizes the perfect combination of liquidity and proceeds. Since the deposited date, for every 7 days (the shortest term is 1 day) interests are calculated according to the notice deposit interest rate of the corresponding currency, meanwhile the principal and interests as of the previous interest settlement date will be transferred to the next interest calculation term automatically for compound interest calculation. Withdrawal is allowed at any time, and our client needs not to worry about unnecessary interest loss.

II. Features

(1) Multi-currency financial management: in addition to RMB yuan, 8 foreign currencies – US dollar, Euro, Japanese yen, sterling pound, Canadian dollar, Swiss franc and Australia dollar can enjoy this facility.

(2) Short duration and strong liquidity: provide 1 day and 7-day wealth management in RMB, 7-day wealth management in foreign currency, and 1 day or 7 days will be a financial term to improve liquidity.

(3) Periodic interest calculation offers more proceeds: each one or seven days are one interest calculation cycle, meanwhile interests are calculated for 360 days, its financial yield ranges from 1.5 times to 6 times of interest rate of demand deposits.

(4) Withdraw freely at any time: withdrawal is allowed at any time in full amount or in part. For withdrawal at our business network, two human-oriented withdrawal options are provided – system default or self-choice.

(5) T+0 withdrawal facility: if the needed capital is more than the balance of the demand deposit in the card, for the amount needed more than the balance, it can be withdrawn within the limit of the principal of the same currency in the account, including the transactions of withdrawal, transfer, consumption by cards, mortgage deductions, foreign exchange trading, credit card repayment etc.

(6) Minimize loss of interest: on the basis of withdrawal at any time, the interest loss for notice deposit changed to demand deposit is not more than 7 days.

III. Application Process

IV. Warm Reminding

"Money Produces Money A" Wealth Management Account application is limited to the holders of main CMBC debit card.

Minimum bottom deposit is RMB 50,000 yuan (or foreign currency with equivalent value according to the exchange rate announced by our bank on that day).

For partial withdrawal, if the balance of the account is less than RMB 50,000 or foreign currency with equivalent value, the left amount will be changed into demand deposits.

CMBC card associated with time deposit book or contracted “Money Produces Money A” wealth management account shall not contract “Money Produces Money B” account.

V. Selected Case

Case 1

Mr. Cao is a major investor in stock market, recently the stock market is in downturn with few transactions, and his idle money in his deposit account with a stock company is as high as one million yuan. Because the stock company only gives him interests of demand deposit, Mr. Cao is very dissatisfied; if changing the money into time deposit, the minimum time is 3 months, and the recent stock market shows the sign of rebounding after touching the bottom, so Mr. Cao also worries to miss the investment opportunity. After Xiao Wang, one of our financial managers knows about it, he recommends to Mr. Zhang our “Money Produces Money B” financial account. Mr. Zhang followed the advice immediately and applied for this facility with his money. 2 months later, the stock market rises, Mr. Zhang bought a blue-chip with the money and gained 10% proceeds from buying and selling. Afterwards Mr. Cao thanked Xiao Wang and expressed his satisfaction. Through “Money Produces Money B” financial account Mr. Cao get his interest as follows: 1 million x ×（1+1.62%×0.8×7360）8×（1+0.72%×0.8×4360）- 1 million = 2,081.9 yuan, which is 2.17 times of the interest of demand deposits (after tax). Not only capital needs are satisfied timely, but also higher proceeds are enjoyed.

Case 2

Ms. Lee, an officer worker, ordered a house worth RMB 1.2 million. She plans to sign the house purchase agreement with the developer based on mortgage financing with a bank, for which Ms. Lee prepared the down payment of RMB 360,000 (30% of total price). Considering the time gap from actual payment, Ms. Lee hopes to get higher proceeds through wealth management with banks under the precondition that capital needs after 2 months will not be affected. Then Xiao Wang, one of our financial managers recommended Ms. Lee to apply for our “Money Produces Money B” financial account. 2 months (60 days) later, the developer informed Ms. Lee to sign the house-purchasing agreement, then Ms. Lee transferred the down payment into the account designated by the developer and completed the signing of agreement smoothly. After applying for the said account, Ms. Lee got the interest as follows: 360,000×（1+1.62%×0.8×7×360）8×（1+0.72%×0.8×2360）- 360,000 =749.48 yuan, which is 2.17 times of interest of demand deposit (after tax). Through “Money Produces Money B” financial account, not only Ms. Lee’s capital demand is guaranteed, she also enjoyed the proceeds more than doubled the interest of demand deposit.

Case 3

In the May 1 Golden Week, the clothing business flourishes. The business volume in these 7 days of Mr. Zhao, an individual clothing retailer, is as high as RMB 540,000, but after half a month, Mr. Zheng, a wholesaler, will ask Mr. Zhao to pay RMB 500,000 for the goods. In excitement, Mr. Zhao also worries on how to manage this huge amount of money. After Xiao Wang, one of our financial managers knows about it, he recommends Mr. Zhao to apply for our “Money Produces Money B” financial account with RMB 500,000. After half a month (15 days), Mr. Zheng asked Mr. Zhao to pay for the goods; Zhao transferred the money into the account designated by Zheng smoothly. After applying for the said account, Mr. Zhao got interest as follows: 500,000 x ×（1+1.62%×0.8×7×360）2×（1+0.72%×0.8×1360）- 500,000=260.03 yuan, more than two times of demand deposit interest (after tax). The said account guarantees both his capital needs and higher proceeds.