Bank of China's First Community Bank Opens in Qichun County, Hubei Province

On March 4, 2011, Bank of China and Fullerton Financial Holdings ("Fullerton") opened their first Community Bank in Qichun county. The Bank, named BOC Fullerton Community Bank, is the first of its kind in the country founded by a large Chinese commercial bank with an international partner.

Bank of China's EVP Zhu Shumin, Fullerton's CEO Francis Rozario, together with Hubei branch of the People's Bank of China, CBRC Hubei branch, Financial Service Office, SAIC and other related government leaders, all attended the grand opening ceremony.

Qichun BOC Fullerton Community Bank is an independent entity with a registered capital of RMB 30 million, 90% (RMB 27 million) of which is from Bank of China and 10% (RMB 3 million) is from Fullerton. The bank will support the development of small and medium-sized enterprises (SMEs), mini business owners, local individuals, and farmers by providing a wide range of banking products and services such as deposits, loans and remittance in an efficient, professional and reliable manner.

Community banks are designed to expand the coverage of financial institutions and to address the issues of scarce financial services as well as lack of competition in rural communities. Building community banks has a significant impact on balancing the economic development in cities and in rural communities and on providing adequate financing to businesses in rural areas.

As a most international, large, listed bank in China, Bank of China has a strong brand, wide branch network and deep experience in providing financial products and services across China. On the other hand, Fullerton, over the years and across several emerging markets, has developed a unique business model focusing on the SMEs, self-employed mass market (SEMMs), individuals, and farmers.

Bank of China's EVP Zhu Shumin said, "As China's reform and opening-up policy evolve further, China's rural communities move towards developing into larger towns. This presents huge growth potential and business opportunities. By exploring and creating an innovative and effective model for financial services in the rural areas, large banks can help achieve a win-win situation wherein the rural financial service sector develop, local businesses grow, and the community benefits.

Fullerton's EVP Jovasky Pang said, "Bank of China has been one of our important partners and we have had a long-term relationship in developing SMEs and SEMMs. This important project of building community banks shows the confidence and determination of both parties in the rural communities of China"

In the near future, Bank of China and Fullerton will set up more community banks in other regions, contributing more to rural financial development.

Background:

About Fullerton

Fullerton is a 100% owned subsidiary of Singapore's sovereign wealth fund Temasek Holding Company. Since its establishment in 2003, Fullerton has developed and implemented a unique financial service business model servicing SMEs, SEMMs, and mass market salaried individuals. Over the years, it has built strong expertise for corporate governance, marketing, risk management, operations and IT. Fullerton formed a strategic alliance with Bank of China in August 2005.

About Qichun

Qichun County has a population of 980,000 people and a land area of 2,398 square km. It is located on the border of Hubei and the south of Dabie Mountain as well as the northern shore of the mid-lower stream of Yangtze. It is known for being a focal spot for waterway and continental transportation as well as being a business center.

Qichun is also home to one of the most famous doctors in China, Li Shizhen; therefore, several of the industries (including the agriculture industry) are related to medicine. Aside from agriculture, Qichun's other main industries include medicine, ceramics, electricity, forest industry, plastics and textile.

Qichun has been focusing on "building a strong economy and becoming a county known for health, medicine and culture." In recent years, Qichun's economic, social and cultural development has progressed a lot. In 2010, Qichun GDP reached RMB 10.1 billion and its financial revenue totaled RMB 980 million. The general income, tax income, per capital net income of famers, as well as the deposit balance of local residents doubled over the last 3 years. Qichun is one of the "Five Fast County Economies" in Hubei province.

Qichun has also advanced in other aspects. It has been hailed as one of the most advanced counties for cultural development and food safety. It is known for having sustainable farm land as well as well as developing agricultural infrastructure and irrigation system in the provincial level. It also has a very good financial credit rating.