☆ Introduction
As an upgrade to general defined fund investment plan for investors to buy funds on the 1st business day of each month in fixed amount, Smart Defined Fund Investment Plan enables investors to buy funds in fixed periods, fixed amount ("fixed period, fixed amount"), or buy funds in unfixed amount on a fixed date every month, according to the trend of securities market index. ("fixed period, unfixed amount"). The purpose is flexible control of the timing and amount of fund investment.

☆ Target Clients
Target clients of Smart Fund Investment Plan:
1. Customers who are confident with China's economic growth and wish to share the growth.
2. Customers who wish to accumulate "large fortune" by "small savings" every month for children's education, house purchase, or retirement.
3. Customers looking for lower risks in buying fund when stock market undergoes volatile short-term fluctuations.
4. Customers seeking cost-benefit analysis and looking for better investment methods.
5. Customers looking for optimal investment solution to fend off inflation and accumulate wealth.

☆ Features
On top of the benefits (monthly investment, value-added compound interest, long-term investment, fluctuation stabilization and inflation protection) of General Defined Fund Investment Plan, Smart Fund Investment Plan in "fixed period, unfixed amount" has other exclusive advantages:
First, cheaper to buy funds. Smart Defined Fund Investment Plan in "fixed period, unfixed amount" follows index average More amount will be deducted for buying funds when the marketing index is below average and less amount deducted when marketing index is above average, Under this plan, investment amount will be spread over long periods to reduce risks.
Second, flexible investment. Smart Defined Fund Investment Plan in "fixed period, unfixed amount" automatically buys fund every month on the date specified by customer, in an amount proportional to the index and average, In this way more funds can be bought under the plan.

☆ Examples
Case I: Defined product modeled on SSE Composite Index. Assuming Dec 31st 1997 is the base period, NAV of the funds on that day is RMB 1.00, the 1st business day of each month is the deduction day, and benchmark investment amount every month is RMB 500, below is the comparison between buying funds in "fixed period, unfixed amount" and "fixed amount, fixed period" under General Defined Fund Investment Plan (regardless of service charge):

A comparison between buying funds in "fixed period, unfixed amount" and "fixed amount, fixed period" under General Defined Fund Investment Plan

From the table above:
In the decade from 1998 to 2008, (1) Average cost of buying funds in "fixed periods, unfixed amount" is RMB 1.28, which is lower than buying funds in "fixed periods, fixed amount" under General Fund Investment Plan (RMB 1.32);
(2) Return rate of buying funds in "fixed periods, unfixed amount" is always higher than buying funds in "fixed periods, fixed amount" under General Fund Investment Plan. Buying funds in "fixed periods, unfixed amount" can spread the cost and earn higher return.

Case II: Defined product modeled on SSE Composite Index. Assuming Dec 31st 1997 is the base period, NAV of the funds on that day is RMB 1.00, the 1st working day of each month is the deduction day, and benchmark investment amount every month is RMB 1000, below is the investment result in "fixed period, unfixed amount" approach starting from January 1998 (regardless of service charge).

If you buy funds in "fixed period, unfixed amount" starting from January 1998, 10 years later in January 2008, you should get a payoff of almost RMB 400,000. The income can be used for children’s education, housing down-payment or retirement pension.

Note: The data in the above cases are calculated using history date and do not constitute a guarantee on the income.

☆ Consideration
1. Each client can only sign up to four (4) agreements on buying funds in "fixed period, unfixed amount". You are advised to select fund, index and average line based on your own risk tolerance level and investment preference, determine the purchase date and base investment amount according to your own income/expense. We hope you can realize your dream to accumulate wealth through sustained investment.
2. If client chooses the T day of a month to be the deduction date, but that date of current month is not a working day, then the deduction will happen on the next working day. Actual amount deducted will be determined by the NAV of that fund on the actual deduction date. If the deduction date falls on suspension period, confirmation for buying funds will be determined by the fund management company.
3. If the deduction fails 3 times because insufficient amount in client’s bank account, then buying funds in "fixed period, unfixed amount" will be terminated. Under this circumstance, client needs to sign up a new plan. To avoid this from happening, client needs to make sure there is enough money in the bank account before 15:00 of the deduction date (T day).
4. All clients are advised to read carefully Fund Contract,, Fund Prospectus, understand the risks and investment return, Only in this regard can you draw a fair conclusion whether the fund you are buying in line with your risk tolerance level, investment goal, investment periods, investment experience and assets. Buying funds periodically cannot avoid inherent risks, nor guarantee that you can earn profit.
5. From Feb 26th 2009, ICBC offers services for customers to sign up Smart Fund Investment Plan at ICBC counter, either "fixed period, fixed amount" or "fixed period, unfixed amount". Due to technical reason, ICBC only provides on-line service for buying funds in "fixed period, unfixed amount" under Smart Fund Investment Plan (CSI 300 Index funds not available). Service for buying funds in "fixed period, unfixed amount" under Smart Fund Investment Plan is not available currently. For further information, please refer to announcement on ICBC website.

☆ Helpful Tips
How to upgrade your existing Defined Fund Investment Plan: Customers already engaged in defined fund investment plan can upgrade the plan to "fixed periods, fixed amount" or "fixed periods, unfixed amount" by updating "investment mode", "purchase date per month". (Due to technical reason, upgrade service is only available at the counter currently. Online service is not available and subject to ICBC announcement.)

☆ Risk Warning
Cautions are advised on the risk of funds.

☆ Definition
Index and average line in stock market
I. Index:
1. CSI 300 Index: CSI 300 Index is compiled by Shanghai Stock Exchange and Shenzhen Stock Exchange. Constituents for CSI 300 Index are 300 A-share stocks with large market capitalization and liquidity in these two markets (179 from Shanghai and 121 from Shenzhen). The index is a capitalization weighted index to calculate the market capitalization of a component company. The CSI 300 Index was set at 1,000 on December 31, 2004. The index was launched on April 8, 2005.
2. SSE Composite Index: SSE Composite Index is compiled by Shanghai Stock Exchange. Constituents for SSE Composite Index are all stocks (894 by January 17, 2008) listed in the Shanghai Stock Exchange both A shares and B shares. The index is calculated by weighting average of shares-in-issue. The base day for SSE Composite Index is December 19, 1990. The base period is the total market capitalization of all stocks of that day. The Base Value is 100. The index was launched on July 15, 1991. SSE Composite Index generally reflects the price fluctuation of the listed stocks in Shanghai Stock Exchange.
3. SSE 180 Index: SSE 180 Index ("SSE 180") is compiled by Shanghai Stock Exchange by restructuring and renaming the original SSE 30 Index. It selects 180 sample constituents with best representation in SSE A-share market through weighted average method. The base day for SSE 180 is June 28, 2002. The base period is the total market capitalization of all stocks of that day. The Base Value is 3299.05. The index was launched on July 1, 2002.
4. SSE Component Index: Shenzhen Stock Exchange Component Index ("SSE Component Index") is compiled by Shenzhen Stock Exchange. Its constituents are 40 stocks with best presentation among all listed stocks in Shenzhen Stock Exchange. The base Day for SSE Component Index is July 20, 1994. The base period is the total market capitalization of all stocks of that day. The Base Value is 1000. The index was launched on January 23, 1995. SSE Component Index generally reflects the price trend of A-share and B-share stocks listed in Shenzhen Stock Exchange.
5. SSE 100 Index: SSE 100 Index is complied by Shenzhen Securities Information Co., Ltd. Its constituents are 100 stocks with best presentation in Shenzhen Stock Exchange. The base day for SSE 100 Index is December 31, 2002. The base period is the total market capitalization of all stocks of that day. The Base Value is 1000. The index was launched on January 2, 2003.
6. CNINFO 300 INDEX: CNINFO 300 Index selects 300 constituents with best presentation and liquidity in Shanghai Stock Exchange and Shenzhen Stock Exchange (including SME Composite). The base day for CNINFO 300 Index is December 31, 2002. The base period is the total market capitalization of all stocks of that day. The Base Value is 1000. The index was launched on February 3, 2005.

II. Average line:
180-day average line:
The 180-day average line on day（T-1）= {one stock’s closing price on day（T-1-180）+……+ one stock’s closing price on day（T-1）}/180. Considering the high monthly fluctuation of one stock, using 180-day average line can better reflect the average stock level in a longer period, which means average cost of buying funds in a long period.