The First CICC Collective Investment Scheme Approved to Be Converted to Publicly Offered Bond-type Product

Beijing, October 8th, 2019 –China International Capital Corporation Limited (CICC or “the Company” , 3908.HK) received an approval document from the China Securities Regulatory Commission (CSRC) agreeing that quasi-publicly offered collective investment scheme (CIS) “CICC Enhanced Bond Yield Collective Investment Scheme” (CICC Enhanced Bond Yield CIS) in line with publicly offered funds, this product will be renamed as “CICC Hengrui Bond-type Collective Investment Scheme” after the amendment.

CICC is one of the first securities companies to convert quasi-publicly offered collective investment schemes to publicly offered products. After CSRC issued the Operating Guidelines regarding the Application of the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions to the Quasi-Publicly Offered Collective Investment Business of Securities Companies on November 30th, 2018, CICC actively prepared the conversion of quasi-publicly offered CIS’s to publicly offered products. According to the regulatory requirement, CICC has improved the internal control system, risk management system, and investment decision-making procedure, etc. and has fully prepared for the product sales, purchase and redemption, information disclosure, and the withdrawal of risk reserve of publicly offered products. In March 2019 and June 2019, the company respectively received the Confirmation Letter on Standardized Inspection and Approval for five quasi-publicly offered CIS’s from CSRC Beijing Bureau.

CICC Enhanced Bond Yield CIS is the only bond-type scheme in seven collective investment schemes of CICC. And those products will serve a broader range of customers, and better leverage of the professional asset-management advantages of CICC. In the process of reforming CICC Enhanced Bond Yield CIS, CICC has communicated with the regulators for many rounds. Under the premise of fully considering the interests of investors, CICC has referred to the legal requirement on public funds and adjusted the rate structure, investment strategies, and information disclosure. After the conversion, CICC Enhanced Bond Yield CIS will be operated as a publicly offered bond-type product mainly investing in fixed-income assets with daily liquidity.

The reconstruction on securities companies’ RMB 700 billion quasi-publicly offered CIS’s is carried out vigorously and will offer those products with a clearer market position, which contributes to the healthy and orderly development of the financial market. After the converting process, as the providers of financial products and manager of entrusted assets, the securities companies would return to the origin of asset management business, which is to exert the discretionary management advantage to serve the customers.

In the future, the asset management business will have more opportunities. CICC will continue promoting the development of asset management business to create more value for all investors.