CMBC Exploring Artwork Banking Business

2007-8-13

　　CMBC is brave enough to the first person to eat crabs

Because the regulatory authority has strict restriction on the investment scope of domestic banks, currently the domestic banks can attempt artwork investment and managing assets for clients. 

Knowing about the booming artwork market and the demands of investors, CMBC, committed to innovation and oriented to market, has started whole-new efforts in the area of artwork banking.　　

So far, the exploration of CMBC in the artwork banking sector has yielded preliminary results. By the end of 2006, CMBC has developed the first asset management product coupled artwork, which has been recognized and approved by China Banking Regulatory Commission. This product will be launched at appropriate time and market environment. Because artwork investment has the following features – highly professional, high investment returns, long investment term, lower liquidity, sensitive to the market etc, the artwork coupled products will be issued with limited amount to the high-end private clients. In some way, this is an initial mode of operation for private banking business.  　　

Because this facility is the first one of its kind in China, even seldom seen in the international scope, its risk can be imagined, mainly including credit risks, liquidity risks, legal risks, operational risks, and reputation risks etc. To cope with risks, CMBC imposed stringent restriction in all controllable areas, e.g. selecting the financial institutions with rich experience and successful functioning system in artwork banking business to cooperate with fully; hiring first-class artwork experts with social prestige and status as artwork banking director; selecting top domestic and foreign auction companies, pawn companies and artwork investment consultants as depository, thereby ensuring the safety of the funds, and so on.

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