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  Home Page > Corporate Banking >Corporate Deposit >Structured Deposits
Structured Deposits

I. Introduction
This is a financial product with certain risks. Investors deposit their legally held RMB or foreign currency in ICBC, ICBC links investor returns to interest rates, exchange rates, stock prices, commodity prices, credit, indexes and other underlying financial or non-financial products by embedding financial derivatives (including but not limited to forwards, swaps, options or futures) in ordinary deposits.

With different currencies of principals, structured deposits can be classified into foreign exchange structured deposits and RMB structured deposits. A foreign exchange structured deposit is a structured deposit with the principal in convertible currency (US dollar, Euro dollar, Australian dollar, Japanese yen, HK dollar, etc). A RMB structured deposit refers to a structured deposit with the principal in RMB.

II. Target Clients
Personal customers who expect higher returns, have plenty of money and the capability to analyze financial markets, and can assume corresponding risks. Corporate customers established in the People's Republic of China (excluding Hong Kong, Macau, Taiwan).

III. Functions and Features
Structured deposits are most common derivatives for customers to invest. A structured deposit can be linked to different indexes such as interest rates, exchange rates, stock prices, commodity prices or credit, with expected higher returns than fixed deposit. It can satisfy clients' different requests of investment.

IV. Features and Advantages
1. Three types of structured deposits for different customers: Structured deposits for  personal customers, collective structured deposits for small-and-medium enterprises and special structured deposits for large corporation groups.
2. Wide range: ICBC structured deposits are linked to multiple indexes including interest rates, exchange rates, commodity prices, also structured deposits with minimum income guarantee, principal-guarantee or guarantee on part of the  principal.
3. Tailored design: ICBC structured deposits can be combined in different ways to cater the individual needs of customers, based on various factors such as deposit date, amount, deposit period and linked indicators.

V. Steps
1. Assess: Customers who are interested in structured deposits must be assessed by ICBC first. ICBC will group the customers into different categories based on the documentation supplied and assess their risk tolerance. Only those who have passed assessment can apply.
2. Assign A/C: Customers who have settlement accounts opened in ICBC must assign one account for structured deposits. Customers who have not opened settlement accounts in ICBC must open one first for the structured deposits.
3. Sign agreement: Customers who have passed assessment and assigned a bank A/C for structured deposits are welcomed to sign agreement with ICBC and proceed.

VI. Service Channel
Eligible corporate customers are welcomed to apply during office hours at any ICBC sub-branch or branch with the service available. Personal customers have an extra option to apply online the structured deposits available through ICBC Internet Banking during sales period.

VII. Risk Warning
Customers may face different risks: unable to draw in advance during deposit period (liquidity risk), unable to get expected income upon maturity of structured deposits (market risk) and the risk of early termination of product by ICBC.

VIII. Cases
Case (I):
Product name: Terminable structured deposit
Currency of principal: USD
Deposit period: Three months
Principal-guaranteed: 100% (held to maturity)
Type of income: Fixed
Expected return: 2.50%
Termination conditions: ICBC reserves the right to terminate the product in advance after two months.
Risk disclosure:
(1) The right of ICBC to terminate the product in advance can result in early termination of the product;
(2) Customers must hold the product till maturity, not allowed to draw structured deposits in advance.

Case (II):
Product name: Gold-linked structured deposit
Currency of principal: AUD
Deposit period: One year
Principal-guaranteed: 100% (held to maturity)
Linked index: Spot gold fix price of London Gold Exchange
Expected return: Performance of linked index upon maturity, minimum: 1.45%, maximum: 8%.
Performance of linked index upon maturity: Spot gold fix price of London Gold Exchange on the observation date at the end of period/spot gold fix price of London Gold Exchange on the observation date in the beginning of period - 100%.

Risk Disclosure
(1) ICBC structured deposits are linked to commodity prices. Customers may only get 1.45% of the guaranteed principal if the international gold price edges up slightly in  the year (gold price at the end of the period is 101.45% less than the gold price in the beginning of the period), which may lower than the interest rate of fixed deposits with  the same term.
(2) Customers must hold the structured deposits till maturity, cannot draw early.

Note: Information herein is for reference only. Refer to the announcements and regulations of local branches for further details. Industrial and Commercial Bank of China Limited reserves the final right of interpretation.