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||17 September 2009
Malaysian bank launches new product for Chinese market
Malaysia's second largest banker CIMB Group has launched a new structured product targeting commodities and greater China markets over the decade, New Straits Times reported Wednesday.
The product requires a minimum investment of 250,000 ringgit (1$=3.8 ringgit) for an individual. It is not only guaranteed capital protected, but also a minimum profit rate of four percent a year on average.
This is the first of its kind in Malaysia to guarantee a minimum profit for investors, which is higher than the current fixed deposit rate, said Peter England, head of the group's retail banking segment.
In addition, investors could potentially earn another average 4.5 percent a year so long as the underlying indices of MSCI Taiwan Index, Hang Seng China Enterprise Index and S&P GSCI Excess Return Index could stay above the current level over the decade.
The variable profit is simple and relatively benign of risk on China's bullish market, said CIMB's head of structured & banking products Chu Kok Wei here on Tuesday.
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