Reform of CMBC Business Department Drove Financial Market Business Boom

2007-10-19

Since the 1990s, driven by financial globalization and integration of banking service, the pace of banks in product innovation has picked up, financial competition has become increasingly fierce. Innovation directly concerns the comprehensive competitiveness of a bank; while the management and operation of various innovative products of banks cannot live without the support of diversified financial markets and the guarantee of market risk management technologies. Considering the future competition in China’s banking industry, with the rapid development of China’s financial market and the diversified requirements of customers on financial services, the new mixed banking services that integrate services at the credit market, currency market, bond market, stock market, fund and derivative market will rapidly become the core business of a bank, and determine the competitiveness of a bank at the markets. Currently, the innovation of commercial banks shall first focus on the harmonious interaction among marketing innovation, product innovation, innovation of risk control mechanism and the innovation of the incentive mechanism. Secondly, speed up the introduction of badly needed talents in product R&D, model development, risk control and product marketing, and use the most advanced technologies and efficient human resources to speed up the pace of financial innovation. Besides, it shall extensively refer to the advanced experience of the international financial industry, strengthen the exchanges and cooperation with strategic investors in business innovation and risk control to upgrade the diversified investment management and inter-market financial trading technology. Meanwhile, we will dedicate to building up a professional and diversified financial market team that runs efficiently and is geared to the international standards to provide comprehensive financial services to customers, make them feel secure, comfortable, happy, and reward the society sincerely.
　　Appendix:
　　History of CMBC financial market businesses
　　In 2004, acquired the qualification of Class A member of government bond underwriting group
　　In May 2004, acquire the approval of CBRC to engage in derivative business first
　　In June 2004, acquired the qualification for buyout repurchase business
　　In June 2005, acquired the qualification for the forward transaction of bonds
　　In August 2005, acquired the approval of CBRC and the State Administration of Foreign Exchange to handle RMB structure wealth management business first
　　In October 2005, acquired the approval of CBRC to engage in RMB wealth management business (assets management category) first
　　In October 2005, acquired the qualification to carry out forward transaction at inter-bank forward foreign exchange market
　　In 2005, acquired the qualification of bond market maker
　　In February 2006, acquired the qualification of interest rate swap transactions
　　In April 2006, acquired the qualification to engage in swap transactions at inter-bank foreign exchange swap market first

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