2. Table of contents Executive summary Problem statement  Introduction Introduction  Issue  Problem statement Problem statement Enclosures Problem one Problem two Problem three Conclusion

3. Executive summary To extend greater support and improve the financial services for the development of small and medium-sized enterprises (SMEs), CCB has made expanding the SMEs business as a strategic choice and added it to its strategic development blueprint. The following three aspects will be discussed in this composition in the hope that there will be something helpful to the research on opening new accounts of Small Medium-Sized Enterprise; developing new financial products to Small Medium- -Sized Enterprise; and strengthening contacts with Small Medium-Sized Enterprise. The problem on developing new financial products to Small Medium-Sized Enterprise is the most inportant thing. I believe if we can slove these problem, our bank must get more achievements in the future.

4. Introduction China Construction Bank (CCB) opened in 1954. CCB with its headquarters in Beijing and a variety of international financial centers all over China is a national commercial bank with features of medium-long credits CCB is a leading commercial bank in China providing a comprehensive range of commercial banking products and services. Our business consists of three principal business segments: corporate banking, personal banking, and treasury operations. According to The Banker magazine, we were the 35th largest bank in the world based on total assets as of December 31, 2004. We were named by The Banker magazine as the "Bank of the Year'' in China in 2005.

5. Problem statement How could CCB Shanghai branch department improve the services to attract more small and medium-sized enterprise’s business?

6. Problem one: Condition of opening accounts of small and medium- sized enterprise  Analysis: Analysis:  Evaluation: Evaluation:  Suggestion: Suggestion

7. Analysis: The basic condition is registration fund. The registration fund of a company is no less than RMB 1,000,000 (or130,000 U.S. dollars). The condition is not reasonable for all consumers.

8. Evaluation: Our bank’s requirement in opening new accounts about the registration fund is RMB 1000000 (or 130000 U.S. dollars). If the copmany’s registration fund is higher than present level If the company’s registration fund is less than present level

9. Suggestion: Small Meduim-sized Enterprises (SMEs) are classified as those with registration fund under RMB 400000(or 50000 U.S. dollars). Our bank will decide to reduce the condition of registration fund to RMB 500000 (or 70000 U.S. dollars). This level will be more reasonable than now. This change will help our bank to attract more and more potential small meduim-sized enterprises.

10. Problem two: Developing new financial products to small and medium-sized enterprise  Analysis: Analysis:  Evaluation: Evaluation:  Suggestion: Suggestion

11. Analysis: The state-owned banks attack the domestic companies, and many foreign famous companies decided to choose the foreign capital banks of their own country. China Construction Bank lost more and more customers, especially in Shanghai that is an international city. In the past, our bank also only attached impotance to our VIP consumers. We can’t ignore these small medium-sized enterprises and some MultiNational Corporation (MNC). We should develop some new financial products to these consumers.

12. Evaluation: These years our CCB try our best to improving our credit business and have got some achievement. There are some traditional credit businesses below:  Working Capital Loans for SMEs  Fixed Asset Loans for SMEs  Real Estate Development Loans for SMEs

13. Suggestion: For the small medium-sized enterprises, if our bank want to attract these domestic companies, we should offer them more new businesses to let these consumers have a wide choice. There are some new credit businesses below:  RMB Credit Line Loans for SMEs  Overdraft for SMEs  Export Factoring  Negotiation of Export Bills  Packing Loan  L/C  Forfaiting

14. Problem three: Strengthening contact with small and medium-sized enterprise  Analysis: Analysis:  Evaluation: Evaluation:  Suggestion: Suggestion:

15. Analysis: The relationship between bank and consumers like fish and water. In the past we made use of telephone to strengthen contact with consumers. Now we make use of more E-bank to strengthen contact with consumers.

16. Evaluation: We have some correlative products.  The 95533 Customer Service Center. Every bank has their own system like this. E-banking has maintained a rapid and robust growth trend.

17. Suggestion: In order to offer these consumers better services to strenghen contact with them, we will improve our E-banking services. There are some new E- banking products below, particularly to these small medium-sized enterprises.  Small and medium-sized enterprise services system  Corporate onlining banking  The China Construction Bank Charter on Mobile Phone Banking Services

18. Conclusion First, establishing an operational and management department especially providing services for small enterprises and staffing the department with qualified professionals. Second, establishing a special credit rating system in response to the characteristics of small enterprises. Third, optimizing credit process, simplifying operational procedure, raising approval efficiency and adopting differentiated management for three categories of small enterprise clients. Fourth, launching the two customer-tailored “ Speed Lending ” and “ Path of Growth ” credit service products to meet the financing demands of small enterprises at different growth stage.

19. Conclusion Fifth, increasing the provision for small enterprise clients and establishing the small enterprise credit risk compensation mechanism. Sixth, establishing the small enterprise credit risk pricing mechanism according to the principle of incoming covering risks. Seventh, establishing the incentive and discipline mechanism in line with the credit culture of small enterprises. Eighth, establishing special statistics indexes and accounting system to evaluate the business performance of the financial services to small enterprises.

20. Enclosures Time zone: From 1 st January, 2006 to 31 st December 2007 Bibliography:  “Internet bank services” Chen jin  “Marketing” Michael J.Etzel, Bruce J. Walker, William J.Staton  http://www.ccb.cn

21. 03 International finance Class two Wu hong fei 2003175227