I. Advantages of ICBC Settlement Service
In banking settlement, ICBC has always been in the leading position:
1. The market share of RMB settlement is 45%. Business volume of RMB settlement broke through 185 trillion in 2005;

2. By the end of 2005, number of corporate settlement deposit accounts opened in ICBC reached 3.2 million on a basis of small and invalid accounts cancellation;

3. The market share of international settlement is 20%;

4. The market share of securities futures fund clearing is over 50%;

5. 2005 was the fifth year that ICBC launched RMB payment settlement agency services; Currently, ICBC acts as the agent for more than 10,000 various financial institutions including 2 policy banks, 12 shareholding commercial banks, fund clearing center of nationwide city commercial banks, foreign banks and township credit unions. ICBC occupies over 90% of market share in payment settlement;

6. By the end of 2005, ICBC has provided cash management plan services for more than 17,663 customers, 3.7 times of that in 2004, and newly launched a cash management service brand -- Caizhi Account.

II. Features of ICBC Settlement Service
Armed with developed banking settlement network and advanced technological platform, ICBC settlement service has the following main features:

(I) Diversified settlement products, fast and convenient
Besides offering traditional settlement tools such as cheque, draft and bank note, ICBC continues to focus on innovating its settlement products and speeding up its settlement in order to assist customer in cash management and working efficiency. For example:

1. Electronic Exchange
ICBC provides secure, fast and convenient electronic exchange services to customers based on its real time clearing system. Urgent remittance between any two business offices in ICBC system can be credited in 2 hours, and batch remittance in 24 hours.

2. Internet Banking
ICBC well-developed electronic payment system can help customer to make many kinds of payment at home. Customer can choose different types of payment methods according to his own needs in many powerful, safe and convenient ways such as electronic payment, batch payment, payment reservation or Corporate Finance Room.

3. SWIFT-PCC System
ICBC is the formal member of Global Banking Finance Telecommunication Association. Timely and secure receipt and payment of remittance can now be assured through SWIFT-­PCC networking at 3 levels of head office, branches and Sub-branches. technology

(II) Strong Creativity in Innovating Settlement
ICBC has a strong team of product design who is excellent in business, technology and market needs understanding. ICBC sets up large software development centers in Zhuhai, Guangzhou, Shanghai and Beijing. More than a thousand of computer professionals with strong research background are involved in different kinds of software development. ICBC always steps ahead of all the domestic counterparts in electronization. Its business processing system has reached international advanced standard, including such functions as:

1. All-functional Banking System (NOVA)
This all-functional Banking System provides all round supports for all ICBC business services under its integrated platform, such as unique customer services, stringent and highly efficient internal management, and scientific, timely decision support.

2. Centralized Data Center Mode
Data of the whole bank are centralized in two big data centers in both north and south. Data are mutually backed-up. Information sharing and business operations are now standardized and regularized.

3. Real-time Clearing System
Real-Time Clearing System is a system of transfer, settlement and clearing in one. All ICBC business offices across the country are connected into one whole entity so that remittance of funds can be credited real time into accounts.

With its on-going innovative spirit and strong technical strength, and on the basis of maintaining its leading position in traditional banking services, ICBC allocates more efforts in understanding the markets and customer needs when facing this ever-changing market. Existing products are optimized regularly. More new products are launched into the market.

(III) Quality and Reliable Settlement Service
ICBC can provide reliable and quality settlement services to corporate customers on the basis of the following three advantages:

1. Strong Financial Base
In the end of 2004, total assets of ICBC reached RMB 5,069,324 million, deposits in RMB and foreign currency totaled RMB 5.1 trillion. ICBC has sufficient reserved funds to satisfy customer's financing needs and full-amount payment of depositors in local or foreign currency.

2. Strict Internal Control Assurance
ICBC implements a management scheme of "Level-1 Legal Person, Levels Authorized Operation". Security is always put on the top priority during the design, development and operation of business processing system. The whole system has multiple layers of firewall, dual backup and strict emergency measures. Prudent regulatory systems and standardized operational methods are carried out in fund audit. All sub-branches have deposit accounts for Reserved Payment Fund opened in head office and senior bank for allocation of funds. Fund remittances adopt the method of real time updating the Reserved Payment Fund account. Sub-branches will borrow from the head office if having insufficient funds so that no stop order or stop bill and delay payment will be occurred.

3. Good Social Reputations
"Customer First" is the service theme that ICBC dedicated ever since. ICBC has kept improving its service quality and standard over the years. Satisfying customer needs is the premises for its own development. ICBC wins a large batch of quality customer group and becomes the biggest bank with most of domestic industrial and commercial companies as its customers.

Following is a partial list of the awards that ICBC recently awarded in the world:

2005:
"Best Bank of China" by Global Finance;
"Best Commercial Bank of Mainland China" by Asiamoney;
First Prize of "'China Internet Industry Survey Report for Internet Banking"

2004:
"Best Asian Trading Financing Bank & Best Asian Project Financing Bank" by Emerging Market;
"Best Bank of China" by the Banker;
"Best Bank of China" by Euromoney consecutively;
"Best Esteemed Enterprise of China" in 2003 and 2004;
"Best Commercial Bank of Mainland China" by Asiamoney consecutively.