China Minsheng Banking Corp. Ltd will debut its first package of high-earning RMB individual investment products on Nov. 17, Minsheng announced Monday.

Minsheng's package of investment products was approved by the China Banking Regulatory Commission (CBRC) last week, making it the second such bank in China after China Everbright Bank.

The RMB individual investment products comprise a package of bonds and bills transacted on interbank markets and are sold to individual investors, said Li Ziqing, Everbright's vice president. They are different from savings deposits.

The rate of return for the Minsheng's RMB individual investment products will be 2.78 percent for half-year and 3.24 percent for one-year term products, 0.71 and 0.99 percentage points higher than those of fixed deposits, Minsheng said.

Their main part of the investment will be used to buy reliable bills or treasury bonds issued by the People's Bank of China (PBOC) with a rate of 3.4 percent, while the rest will be used as fixed deposits, Minsheng said.

The ratio of the two parts, decided by the amount of total investment, are six-to-four for investment from 10,000 yuan (1,2077 US dollars) to 100,000 yuan (12,077 US dollars) and seven-to-three for investment above 100,000 yuan, Minsheng said.

With the opening of financial markets, traditional financial services such as deposits and loans can no longer satisfy the demand of target customers, Yan Junwei, a Minsheng official, said.

"We expand our variety of services and provide our targeted consumers with low-cost and high value-added products, based on our analysis of current financial market," Yan said.

Insiders predicted that the individual investment products market will develop at an annual rate of 30 percent and that competition in this field will be fierce in the next ten years.

China Merchants Bank and CITIC Industrial Bank have also applied to the CBRC for the similar individual investment products, insiders said.

Source: Xinhua