Our bank's "structured deposits" are essentially deposits rather than financial products, and their sales and capital measurement are based on deposits. The difference between "structured deposits" and financial products is mainly reflected in the following four aspects:

1. In terms of principal utilization: the principal of structured deposits is flexibly used independently by our bank's self-operated funds. The purpose is the same as a normal deposit. The principal of wealth management products is invested by the asset management department entrusted by the customer, and the investment direction is also agreed in advance in the product description.

2. In terms of account management: Structured deposit funds can be checked at any time in customer deposit accounts, which is consistent with general deposits. Financial management funds are not reflected in customer deposit accounts and can only be queried on the fiduciary contract.

3. In terms of principal accounting: Yinfa No. 2008369 stipulates that banks add "structured deposits" statistical indicators, and gives the definition of structured deposits "refers to embedded derivatives or income-linked stock indexes, exchange rates Deposit products with equal index. "Our bank conducts accounting in accordance with regulatory requirements. It shall be reported to the central bank, and deposit reserves shall be paid compared with general deposits, and shall be included in the loan-to-deposit ratio assessment.

4. In terms of income accounting: Our bank's customer income from structured deposits is reflected in the form of interest and is calculated under the "interest expense" account. The income payable to customers of financial products is calculated in the corresponding liability account.

(Response time: March 28, 2022. For the latest business changes, please refer to the official website of China Merchants Bank.)