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Profit from Interest Choice of Choices Stock Fund Now in Hot Sales!
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Published time 2008-03-17
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Important Notes: This prospectus is an inseparable part of the China Construction Bank Financial Product Subscription Agreement. Should there be any query concerning the contents of this prospectus, please consult a China Construction Bank (CCB) accounts manager. The operation of this product will only be based on the information described in this prospectus. The right to interpret this prospectus rests with CCB. 1.Product Features
2.Investment Management CCB shall entrust Zhongrong International Trust Co., Ltd to manage all the funds raised for this product, while CCB Principal Asset Management Co., Ltd. shall provide investment consultancy services and CCB shall provide custodian services.This product shall invest in financial instruments of good liquidity, including domestic stocks approved for listing and trading in accordance with the law; publicly issued securities investment funds; bonds; asset-backed securities and other financial instruments permitted for investing by regulatory bodies.Of which, the proportion of stock investments for this trust shall range from 0 to 70%, and the proportion of fund investments shall range from 0 to 50%.Any idle cash may be invested in bank deposits, money market funds, IPO subscriptions or bond repurchases, or in other high liquidity, low risk financial instruments such as convertible debts.CCB may, in accordance with the relevant stipulations of regulatory bodies, make timely and appropriate expansion of the scope of investment of this product. For stock investments, this product shall subscribe to the investment philosophy of creating value through research .It is the opinion of the investment management team that the main driving force for surges in share price of a company is future profits exceeding market expectations.So priorities will be given to investing in shares of listed companies with potentials of achieving results exceeding market expectations.During the course of investment, the degrees of relative fluctuation and deviation of share prices and values of candidate stocks will be analysed in order that trading opportunities can be identified to allow timely achievement of earnings when share prices are fluctuating. In fund investments, this product shall adopt a disciplined active investment concept.The disciplined part is reflected in the fact that assessment, selection and investment of any fund have to follow strictly a definite investment process and carried out on the basis of thorough risk assessments. Active investment means that the investment consultant will utilise his professional skills in making active choices among different types of funds but not hold all fund passively. 3.Explanation of Earnings Actual Earnings of an Investor = (Net Value of Corresponding Units Upon Product Redemption Net Value of Corresponding Units at Product Subscription) x No. of Shares of the Product Held by the Investor. Of which, Net Value of Corresponding Units upon Product Redemption = Unit Product Net Valueon Dealing Day Performance Incentive Fee Payable by Each Product Share; Unit Product Net Valueon Dealing Day = Product Net Value on Dealing Day/Total No. of Product Shares on Dealing Day. The corresponding unit net value of each share of product at the time of subscription is RMB1.00. 4.Explanation of Fees and Methods of Charging 4.1There is no subscription fee or redemption fee for this product. 4.2Fixed management fee, custodian fee and trust management fee of the product, and fixed management for investment consultant: at 1.50% of the product net value per year to be charged on a daily basis and paid on a monthly basis. 4.3Performance incentive fee: Deducted on a sharing basis on each product dealing day and charged and paid on the basis of the unit net value of the product on the dealing days.The unit net value of the product is that calculated and announced by the custodian.Formulae for the calculation of performance incentive fee are as follows: |
