Capital Custody Products

(I) Transaction Capital Custody

1. Product Definition

It means the custody of clients’ capital used in the transaction procedure of commodities, services and equities according to transaction contract.

2. Product Features

◆As a third party accepted by both parties in transaction, the Bank conducts agent custody and supervision of transaction capital under authorizations of both parties.

◆The custodian bank assists both parties in transaction to transfer transaction capital, so as to protect the interests of both parties and facilitate the completion of transactions safely.

3. Target Customers

Transaction business authorities and related parties that need to introduce commercial bank as a third party to conduct agent custody and supervision of transaction capital

(II) Guarantee Capital Custody

1. Product Definition

It means the custody of client’s capital used in business, investment and financing to guarantee the performance of certain obligation of clients.

2. Product Features

When participating in business, investment and financing, the client needs the bank to conduct custody of capital, upon results of economic activities satisfying certain condition for payment, the custodian bank will pay the capital or refund the capital to the depositor as agreed, making the capital transfer more apparent and avoiding misappropriation of capital.

3. Target Customers

It is suitable for authorities that need to introduce commercial bank to provide “mediation guarantee” and reduce the risks such as parties default, and it involves capital custody such as travel agency deposit, land auction deposit, security deposit for safe production, deposit for salaries of migrant workers, deposit for mine environment management and ecological restoration etc.

(III) Custody of Capital for Financing in or Repayment

1. Product Definition

It means custody of capital financed in by direct or indirect method or aggregated via special account for repayment of debts by clients.

2. Product Features

During the period of financing, the bank is requested to supervise the financier to use fund according to intended purpose, ensuring the capital is used for reserved purpose; or during the agreed period, the bank is requested to aggregate special fund for repayment of debts.

3. Target Customers

The custody of government funds for repayment, foreign trade development funds, treasury subsidiaries and capital financed in by government investment and financing platform or capital for repayment.