Lately, a fervent atmosphere ensued when the “IPO Subscription" investment product jointly offered by CCB & CCB Principal Asset Management was on sale.  According to the CCB department concerned, this batch of IPO Subscription product was meant to be on offer from November 5th to 15th, but since 1.5 billion yuan worth of the product had already been sold on the first day, pre-mature closing of the offer was possible.

In the afternoon of November 5th, at the CCB sub-branch at Dongsi, there was a long queue of customers taking their turns to subscribe this product.  According to one middle-age investor, Mr. Jiang, the tempo of IPO issuance had been very quick and many prime stocks were returning to the Mainland to be listed as A shares of late, and many of his friends were able to reap decent returns when they were allotted new shares through online subscriptions.  But with limited funds personally, he reckoned that the chance of his being allocated new shares would be very low.  Through purchasing this IPO Subscription investment product, however, he could take advantage of the collective fund and obtain steady returns through IPOs.  In addition, since this product has access to offline placement of new shares, which would have an allocation rate 2-3 times that for online subscriptions, the chance of being allocated shares would be substantially boosted.

Another investor of fairly advanced age revealed that, as a retiree, he had some idle money on hand.  To him, buying stocks or stock funds would pose too much risks and the low-risk, high-earning IPO Subscription investment product would suit him best and would allow him to share in the benefits brought about by the growth of the Chinese securities market.

In order to raise management standards and protect investor interests, CCB has brought in CCB Principal Asset Management Company as an investment consultant to help control risks and raise yield.  Minimum subscription for this product is 50,000 yuan and the investment period is two years.  The funds raised would mainly be used for IPO subscriptions but, during idle periods, the funds would be invested in fixed earning financial products or monetary market funds.  The anticipated overall annualised yield is 5% to 15%.  As a way of enhancing the liquidity of this product, on the regular open day every quarter, applications for subscriptions and redemptions will be handled to allow investors more flexibility in using their funds.