CDB's First Bond Index Funds Issued

Major breakthroughs have been made in the innovation of Bond Index Fund products following the successful issuance of CDB’s Bond Index Funds by E Fund and GF Fund respectively, both having successfully raised funds and completed the setup procedures.

The E Fund and GF Fund have respectively issued a 7-10 year CDB Bond Index Fund at a volume of RMB 2.76 billion and RMB 2.1 billion. According to the data released by other Index Funds at the end of June, these two CDB Funds rank among China’s largest Bond Index Funds with their sizes combined exceeding a quarter of the total of other types of Bond Index Funds.

The investors of the two Funds fall into six categories of insurance asset management, self-operating bank accounts, bank financial planning, private banks, non-financial institutions and individuals, demonstrating a clearly diversified structure of investors.

According to a related business executive at CDB, the successful issuance of CDB’s first Bond Index Funds is significant in four aspects. First, it helps promote the development of China’s bond index investment. Second, it further increases the vitality of the secondary market of CDB’s bonds, and provides a new price reference system for the bond market. Third, it offers to the general public a new investment tool with high credit rating, rational benefits and a high degree of liquidity. Fourth, it provides an easier access for international bond investors to make index investment in China.

The two Funds will be accessible to investors after the conclusion of lock-in period, and more distribution channels will be available at banks and securities brokers.