MARKETING OF FINANCIAL SERVICES IN

CHINA

FINANCIAL SYSTEM IN CHINA

China's financial system is highly regulated and relatively underdeveloped, but has recently
begun to expand rapidly as monetary policy becomes integral to its overall economic policy. As
a result, banks are becoming more important to China's economy by providing increasingly more
finance to enterprises for investment, seeking deposits from the public to mop up excess
liquidity, and lending money to the government.

Financial services in the People's Republic of China refers to the services provided in PRC by
the finance industry: banks, investment banks, insurance companies, credit card companies,
consumer finance companies, government sponsored enterprises, and stock brokerages

As part of US$586 billion economic stimulus package of November 2008, the government plans
to remove loan quotas and ceilings for all lenders, and increase bank credit for priority projects,
including rural areas, small businesses, technology companies, iron and cement companies.

HISTORY OF BANKING IN CHINA

China's banking system is highly regulated with six major banks, each having specific tasks and
duties. The People's Bank of China is the largest bank in China and acts as the Treasury. It also
issues currency, monitors money supply, regulates monetary organizations and formulates
monetary policy for the State Council.

The Bank of China manages foreign exchange transactions and manages foreign exchange
reserves.

The China Development Bank distributes foreign capital from a variety of sources, and the China
International Trust and Investment Corporation (CITIC) was previously a financial organization
that smoothed the inflow of foreign funds, but is now a full bank, allowing to compete for
foreign investment funds with the Bank of China.
The China Construction Bank lends funds for capital construction projects from the state budget,
and finally the Agricultural Bank of China functions as a lending and deposit taking institution
for the agricultural sector.

Banking reform
Financial reform in China's banking sector include the introduction of leasing and insurance, and
operational boundaries are being slowly eroded to promote competition for customers who are
now permitted to choose banks as well as hold accounts in more than one bank.

Banking reform was initiated in China in 1994, and the Commercial Banking Law took effect in
July 1995. The aims of these actions were to strengthen the role of the central bank—the
People’s Bank of China—and to allow private banks to be established. The People’s Bank of
China was established in 1948. It issues China’s currency and implements the nation’s monetary
policies. China’s oldest bank, founded in 1908, is the Bank of Communications Limited, a
commercial enterprise located in Shanghai. China’s second oldest bank was established in 1912
as the Bank of China.

Since 2004 it has become a shareholding company known as the Bank of China Limited and
handles foreign exchange and international financial settlements. The Agricultural Bank of
China, founded in 1951, is mainly involved in rural financing and the provision of services to
agricultural, industrial, commercial, and transportation enterprises in rural areas.

Other major banks include the China Construction Bank; established in 1954 as the People’s
Construction Bank of China, it has been a state-owned commercial bank since 1994 and
maintains some 15,400 business outlets inside and outside China, including six overseas
branches and two overseas representative offices.

The China Construction Bank was restructured in 2003 into a shareholding bank called the
China Construction Bank Corporation, with the state holding the controlling shares. CITIC was
founded in 1979 to assist economic and technological cooperation, finance, banking, investment,
and trade. The Industrial and Commercial Bank of China was founded in 1984 to handle
industrial and commercial credits and international business.

The Agricultural Development Bank of China, Export and Import Bank of China, and State
Development Bank all were founded in 1994. China’s first private commercial national bank, the
China Minsheng Banking Corporation, was opened in 1996.

Commercial banks are supervised by the China Banking Regulatory Commission, which was
established in 2003. In 2005 the commission announced the launching of a new postal savings
bank to replace the old system and its more than 36,000 outdated outlets nationwide
EXAMPLES OF EFFECTIVE MARKETING IN CHINA
The Dum Birds Fly First - KFC Got 5 Years Lead In China

The old Chinese adage, "Ben Niao Xian Fei", is usually translated to mean that those ones with
less intelligence and simpler minds tend to take for the sky before the smarter ones. Yet it can
also be interpreted to refer to the willingness of some to accept the risks by taking action while
others are still waiting for more complete information of the situations.

You can now discuss this article and other articles in the Asian Business Strategy and
Street Intelligence Ezine. Click on the discuss icon at the end of the article.
Kentucky Fried Chicken - or as it is known throughout Asia - KFC had more than 510
outlets in China as of October 2001 compared to less than 400 outlets for McDonalds. What's
more important is that market surveys by AC Nielson consistently confirm Chinese consumers'
general preference for KFC outlets and products over McDonalds'.

One KFC outlet in Shanghai even claimed the highest one- day sales volume ever of any KFC
outlet in the world. KFC opened their first outlet in Beijing on November 12 1987 as a joint
venture - a full 5 full years ahead of McDonald's entry into China. Subsequently it opened a
wholly-owned outlet in Shanghai in 1989.

Responding to the question in a TV interview, McDonalds China's president emphasized

McDonalds' command of the China market in the medium and long term. Certainly, he will have
a lot of catching up to do. Afterall, long before KFC and McDonalds came on the scene, chicken
has had a greater appeal to Chinese consumers than beef as chicken is usually more expensive
and are served only on festive or special occasions in Chinese homes.
Other Leading 'Dum Birds'

Kang-si-fu is a small flour supplier from Taiwan who became the market leader for instant
noodles in China early on. Despite more than 10 years of playing catching up, the Taiwanese
Top Food Conglomerate, President Food still finds the road to catching up Kang-si-fu in China
too rugged. Kan-si-fu with more than 70 high speed production lines in China still maintains a
big lead in the market despite being chased by President Food, Nissin, and other smaller local
brands. Kang-si-fu took its winning money from China to Taiwan two years ago to buy up the
controlling shares in the third largest food company in Taiwan.

Old Faithful Friends Rewarded: How VW came to dominate the Chinese car market
Volkswagon entered a joint venture with Shanghai Automobile Company in October 1984 to
produce 30,000 cars each year. It surpassed 100,000 cars in 1993. It also entered another joint
venture with the First Automobile Company in 1987 to produce the more luxurious Audi. Nearly
100% of automobiles used by Chinese central and local governments are maunfactured by
Volkswagen. The two joint ventures between Volkswagon and these Chinese firms today account
for more than 50% of the market share for cars and automobiles in China.. In comparision, the
1980's US market was an era of revival for Chrysler and Lee Iococca did not pay much attention
to this sleeping dragon market. Toyota and Mercedes Benz literally laughed off the invitation for
them to invest in China in the late 70's. It should come to no surprise that establishing their
presence in China now will not be easy. Honda took advantage of the managerial and investment
disappointment of Peugeot to grab a 50,000 vehicle a year plant in Guangzhou.
 AGRICULTURAL BANK OF CHINA

Company Overview

The Agricultural Bank of China (hereafter referred to as ABC or the Bank) is the first
commercial bank established in the People's Republic of China in 1951 and the State's first
specialized bank set up after the reform and opening-up of the country in February 1979. Ever
since its establishment, the Bank has been playing an important role in China's rural economic
sector. In 1994, the Agricultural Development Bank was separated from ABC. In 1996, the Rural
Credit Cooperatives, once an affiliated financial institution to the Bank, were also detached.
After this, ABC started its transformation into a wholly state-owned commercial bank. On
January 15th, 2009, the Bank changed the registration with the Industrial and Commercial
Bureau and was transformed in its entirety to a joint-stock company, i.e., Agricultural Bank of
China Limited.
The year of 2008 witnessed a rapid growth of ABC with enhanced operational efficiency and
improved asset quality. ABC's net profits in 2008 increased to RMB 51,453 million. Meanwhile,
the total assets stood at RMB 7,014,351 million with total deposits of RMB 6,097,428 million
and outstanding loans at RMB 3,100,159 million. Underscoring ABC's prudential operating
approach and commitment to sustainable franchise development, ABC's non-performing loan
(NPL) ratio is 4.32% and capital adequacy ratio is 9.41%. With the largest network across China
and an advanced IT system, the Bank is able to provide convenient, efficient financial services to
over 350 million clients. Currently, ABC has 24,064 branches, sub-braches and outlets, 30,089
ATMs and has established correspondent banking relationships with 1,171 banks worldwide.
In 2008, ABC took the 223rd place in the Fortune Global 500 and was rated A1/Stable by the
Moody's.
ABC is committed to serving agro-related sectors and dedicated to providing first-class financial
services to both urban and rural clients. With full international capabilities, an innovated
business model and prudential operations, the Bank provides tailored services to communities
both at home and abroad. Based on its large physical and electronic network and diversified
products, ABC is striving to build itself into a modern universal bank with a sustainable
development outlook.

Banking and financial services provided by

ABC
Agricultural Bank of China provides various banking and financial products and services in
China. The company’s personal banking products comprise various deposit products, including
RMB demand deposit, RMB time deposit with lump-sum deposit and withdrawal, RMB and
foreign currency time deposit integrated account passbook, RMB and foreign currency demand
deposit integrated account passbook, foreign currency time deposit, foreign currency call deposit,
personal call deposit, Shuang Li Feng, time or demand optional deposit, and foreign currency
demand deposit; loan products, such as housing loan series, consumer loan series, and business
loan series; and debit cards and settlement services.

Its corporate banking products and services include deposit products, such as corporate demand,
time, and call deposits, corporate foreign exchange demand deposit, corporate foreign exchange
time deposit, and corporate foreign exchange call deposit; financing and credit facility, including
fixed asset, working capital, and real estate loans, international trade finance, domestic trade
finance, and entrusted syndicated loan; payment and settlement; cash management; trading;
investment and wealth management; investment banking; custody; bank card acquiring services;
financial institution services; and services for small and medium sized businesses.

Agricultural Bank of China also offers agro related personal and corporate products; involves in
transactions and investments relating to the financial markets of domestic and foreign currencies;
and engages in wealth management activities, gold trading, foreign exchange services, and
futures trading. It provides its products under the brand names of Golden Key, Golden Way,
Golden Online, Golden Harvest, and Kins Card. The company was founded in 1951 and is based
in Beijing, China.

BRANDS
Golden Key

Overview
This is a "Golden Key" to usher in a new era of ABC's personal banking services. The two
hollowed heart shapes on the key are connected by the emblem of ABC, indicating that the brand
is what customers want and need. The knife-shaped coin part suggests that Golden Key products
and services are easy to be obtained and are of enough varieties to meet the different needs of
customers.
This is a "Golden Key" for billions of customers to open the door to a new world and better
future. The key is designed to showcase dignity and affluence and suggests that the brand will
help customers achieve success and build a better life.
The combination of images with Chinese characters and English letters indicates the integration
of tradition and modernity and the connection between the present and the future. It is a display
of reputation and achievement and a symbol of honor and cooperation. Such a design makes the
brand easy to be recognized and leave customers the impression of being secure, efficient,
reliable and aspiring.
Slogan: Open the Door to Wealth, the Key to a Better Life
The verb "open" echoes with the image of Golden Key and conveys the right information to
customers.
"Open the Door to Wealth" indicates that Golden Key helps customers create and manage wealth
like a life companion.
"The Key to a Better Life" indicates that with the help of Golden Key customers can enjoy a
wealthy and happy life.

Golden Way

An Insight into the Brand

"Golden Way" is our brand of offering corporate banking services. It covers mainly corporate
deposits and loans in RMB and foreign currencies as well as intermediary business tailored to
customers' needs.
As a secondary brand and part of ABC's golden series, "Golden Way" effectively interprets our
commitment to delivering professional services along with creating the best value for our
customers based on cooperation. We have always regarded this idea as the "golden principle" to
our business. The brand is all about providing an all-around platform of financial services for
corporate customers to help grow their business.
In the Chinese version of the brand name "Jin-Guang-Dao", "Guang" means "bright", indicating
that we are committed to providing professional corporate banking services to help customers
build a bright future for themselves.
"Dao" means "way or road", which refers to the approach of our professional banking service as
well as how we deal with business success. It indicates that we are ready to work and share
success with our corporate customers.
We offer all-around financial solutions to our corporate customers, creating more value and
helping our customers achieve success.

 What the Brand Has to Offer

【All-Around Banking Services】
With a dedicated team of professional financial experts, we aim to integrate our financial
resources to provide our customers with all-around solutions, addressing comprehensive
financial concerns of customers during critical stages of growth.

【Professional Financial Partner】

It is our tradition to innovate and pursue excellence. In serving businesses, what we see is not
just customers' needs of immediate growth but also customers' future development. ABC's main
concern is to help customers' grow their business and to create everlasting sustainability of their
businesses.
Choose Golden Way, your professional financial partner, and let us grow together.
Slogan: With Shared Vision, We Work Together for Future Success.
By "with shared vision", we are committed to being a true friend to our customers. We share the
same aspirations and focus on developing trust between each other.
By "we work together for future success", we aim to develop a long-run partnership with
customers and help them grow in a sustainable manner. This is what a professional financial
partner should offer. Moreover, in light of our shared vision, we can help each other grow
stronger and achieve more as we reach new heights together.
This slogan sounds ambitious yet friendly, which helps to enhance the recognition of our brand.

Golden Online

Overview
"Golden Online" is a brand of e-Banking service based on modern electronic and information
technology, including such transaction systems as: online banking, telephone banking, self-
service banking, TV banking (home banking), and service systems (i.e. customer service center,
SMS Express and website). Golden Online features all-around, flexible and easy management of
customers' accounts, funds and investments with secured technical support.
As a secondary brand which is part of ABC's golden series,"Golden Online" well interprets our
commitment to delivering professional services to and creating the best value for customers
based on cooperation, which we have always regarded as a "golden principle" of our business
practices. The brand is all about providing our customers with secure and easy access to online
banking services.
The name "Golden Online" itself has already suggested what is special about ABC's e-banking
services.
In Chinese, the brand name consists of two Chinese characters "Jin" and "Shun" and one English
letter "e". "Jin" means "golden", a mark of the golden series. The letter “e” indicates e-banking
and has the same pronunciation as the Chinese character "Yi" which means "easy", so it also
means convenient and efficient self-service banking. "Shun", meaning that everything goes
smoothly, suggests that we deliver in an easy and fast manner through the online platform, which
is good for both the customers and the Bank.
Features
【Secure】
We take the security of e-banking seriously and have taken strides to ensure the best operational
and technical security for customers. The world’s most reliable and secure communications
protocol as well as the latest encryption technologies, such as certificate authentication and
digital signature are employed in our online banking system. We use USB-KEY, dynamic
password keyboard and the graphics code to provide the best transaction security for our
customers. Besides, we watch closely the operation of the system and keep product development
on track to prevent systemic and operational risks, thus promoting the sound and rapid growth of
our e-banking business.
【Easy】
Golden Online represents 3A (Anytime, Anywhere, Anyhow) service. Individual customers or
enterprises can have easy access to online payment, group finance, cash management, online
fund marketing, roaming remittance, and others through the online transaction system.
【Fast】
Customers can enjoy many efficient financial services of ABC like online trading and online
consulting simply by the click of a mouse, making a call or sending a SMS message.
Golden Online banking offers customers with secure, easy and fast access to online financial
services.
Slogan: Easy Online, Eternal Value
"Easy Online" means that it is easy and fast for any group corporation, ordinary business,
financial institution or individual customer to enjoy banking services through the Golden Online
system.
"Eternal Value" represents that we are dedicated to building a brand which will bring our
customers the best value. We will keep improving our e-banking system and launch better
financial products and services by maximizing our strength in technology, outlet networks and
innovation capacity. We are ready to grow with our customers in heading towards a better future.

Golden Harvest
Overview
As the first brand of agro-related financial services, Golden Harvest pioneers a new way to serve
the farmers. Services under the brand cover eight major fields including farmers' work and life,
development of modern agriculture, rural commodities distribution, development of rural small
and medium-sized enterprises (SMEs), rural infrastructure development, resource development,
rural urbanization, rural social undertakings as well as cooperation with other financial
institutions.
As a sub-brand and one of the ABC's golden series, Golden Harvest well interprets our
commitment to delivering professional services and creating the best value for our customers
based on cooperation, which we have always regarded as a "golden principle". The brand is all
about helping agro-related sectors grow.
In Chinese version of Golden Harvest, "Jin-Yi-Nong", "Yi"means "good or benefit", on one
hand, it is a good friend of agro-related sectors; on the other hand, it will benefit the agro-related
sectors, ABC and society as a whole.
The brand name is very easy to catch, highlighting our target customers: agro-related sectors.

Benefits
Benefits to Agro-related Sectors
Golden Harvest provides financial products and services for target customers such as the
industrialization of agriculture, rural commodities distribution, infrastructure development,
construction of small towns, featured resource development, growth of SMEs, farmers' work and
life and public financial institutions in rural areas so as to boost agricultural production, promote
rural economic growth and increase farmers' income.
Benefits to ABC
The strategy of developing agro-related operations and county-level "blue ocean" markets will
bring into full play ABC's unique strength and increase its core competitiveness and
sustainability.
Golden Harvest features specialized products and efficient services, helping to highlight the role
of ABC in serving the development of agro-related sectors and county-level economic growth.
Such good performance in fulfilling social responsibility will surely boost the brand image of
ABC.
ABC plays a major role in supporting rural financial institutions in the efforts to offer
customized solutions for the customers, and grows with all the agro-related sectors at the same
time.
Benefits to China
As the Chinese old saying goes, when people are affluent, the country is strong. ABC's delivery
of financial services to agro-related sectors helps to improve the rural financial system, promote
the coordinated development of urban and rural areas and support the development of new
socialist countryside.
Slogan: Bring Benefits to Agro-related Sectors
The slogan highlights ABC's sense of social responsibility as a major responsible stakeholder.
The word “benefits” indicates that ABC brings tangible benefits to agro-related sectors with
financial services.
The slogan embodies the essential value of Golden Harvest, namely benefiting agro-related
customers.
The stress falls on "agro-related sectors" which make up the majority of China's population, a
very big group of customers for ABC.

Kins Card

Overview
Kins Card, a bankcard brand covering both debit and credit cards, is developed to meet various
needs of customers for financial services such as payment, settlement, remittance, foreign
exchange, deposit, agency business, investment and wealth management.
As a secondary brand and part of ABC's golden series, Kins Card well interprets our
commitment to delivering professional services to and creating the best value for customers
based on cooperation, which we have always regarded as the "golden principle" of our business.
The brand is all about providing cardholders with thoughtful, credible, efficient, and secure
financial services in daily life.
Kins Card is classified into two major categories by functions, namely Kins Debit Card and Kins
Credit Card.
Kins Debit Card, issued by ABC, can be used in cash deposit and withdrawal, transfer,
settlement, and payment. Under the brand, there are also sub-brands targeted at different
categories of consumers including standard cards, gold cards, VIP cards, horoscope cards, and
campus cards. Based on ABC's extensive service network and multiple service channels, Kins
Debit Card is developed to serve the daily needs of most Chinese people, an indispensible friend
of the cardholders.
As for credit card, there are Kins Credit Card and Kins Quasi-Credit Card. Holders of Kins
Credit Card, given a line of credit, are eligible to use it in payment for consumption within the
credit limit and repay the money later. Kins Quasi-Credit Card is a type of debit-credit card that
ABC develops specially for customers with a good record of credit. It can be used in cash deposit
and withdrawal, transfer and settlement, payment and overdraft. With the dual role of debit and
credit cards, it can help customers create immediate, small and frequent cash flows and provide
customized supporting services to meet various financial needs.
Kins Credit Card is designed to help customers enjoy a high quality of life. With the security
assurance, pro-consumption orientation, convenient financial services, and stylish designs, the
cards are bound to bring cardholders fresh and enjoyable experiences. Kins Credit Card will
grow into a most reliable brand for customers in promoting the value of leading to a quality life.
The brand name, Kins Card, or "Jin-Sui-Ka" in Chinese, indicates beautiful life and future
success, which helps to boost the brand image.
Benefits
What people want to have is what Kins is to deliver.
Customers' needs are at the core.
As a financial platform for people's livelihood, Kins Card satisfies the customers' needs with
convenient, efficient and thoughtful services.
Deliver more than expected.
Besides the basic functions of cash deposit and withdrawal, transfer and settlement, payment and
wealth management, Kins Card also offers customers with more innovative financial products
beyond expectation.
Slogan: Card Follows Your Heart; Wealth Flows with the Card.
"Follow" indicates that Kins Card is always with customers. In Chinese version of "Wealth
Flows with the Card", "Jin-Sui-Ka-Xing", the first three characters "Jin-Sui-Ka" sound like Kins
Card in Chinese, representing high recognition of the brand.
The first half of the slogan stresses the focus on customers' needs while the second half suggests
that customers can always get the money they need with Kins Card.
The two verbs "follow" and "flow" indicate that Kins Card is to bring a better life, adding vitality
to the slogan.

ANALYSIS - CHINA'S ABC IPO

REFLECTS CHANGING BANKING
PARADIGM
Few international financial companies appeared in the lineup of foreign investors for
Agricultural Bank of China's (ABC) initial public offering, reflecting a subtle change in the
relationship between Chinese banks and their Western peers.

At that time, the other three key State-run banks, namely, Industrial and Commercial Bank of
China, China Construction Bank and Bank of China, all sold stakes at an attractive discount to
Western financial giants, including Bank of America, Royal Bank of Scotland and UBS.

Yet, in the wake of the global financial crisis, China's envy of the West's financial system has
turned to suspicion after several crisis-battered foreign lenders offloaded a big chunk of their
Chinese bank shares to clean up their own strained balance sheets.

"Foreign partnership used to be an endorsement for Chinese lenders to boost investor confidence,
but now it has become less necessary as Chinese lenders have gained international recognition
and credibility," Guo Tianyong, a professor of finance at the Central University of Finance and
Economics, said.

Foreign investors who want a slice of the Chinese lender's IPO have to pay full price, even
though there have been concerns over ABC's weak asset quality due to its heavy exposure to the
country's less developed, rural areas.

Among the squad of cornerstone investors for Agricultural Bank's float, UK-based financial
group Standard Chartered has agreed to take a $500 million allotment, while Rabobank of the
Netherlands will invest $250 million.

Both banks have formed an alliance with ABC, seeking to gain a firmer foothold in China
through partnering with the country's largest lender by customer volume.
Other notable investors include several Middle Eastern sovereign wealth funds, Australian media
company, the Seven Group and US agricultural giant Archer Daniels Midland, each have
invested several hundred million dollar into the bank in the hope of exploring business
opportunities in the fast growing Chinese economy.

Thanks to the high level of institutional demand, ABC is on track to raise as much as $22 billion
from its dual listing in Shanghai and Hong Kong, and may eclipse the $21.9 billion raised by
Industrial and Commercial Bank of China in 2006 to become the world's largest IPO on record.

AWARDS

ABC Wins the Online Banking Customer Loyalty Award

of 2009
2009.11.26

At the 2009 E-Banking and Risk Control Forum & Award Ceremony sponsored by JRJ.COM,
the Agricultural Bank of China won the Online Banking Customer Loyalty Award of 2009.

Since its launch in April 2002, ABC’s online banking has continuously improved, resulting in
increasing customer perception and growing market share. The Bank introduced a new
generation of online banking in June 2009, that pays more attention to the user experience and is
a full-function online banking platform offering more individualized services to meet diversified
needs. The launching of the new generation online banking also recognizes the new step forward
in the Bank’s e-banking services. By the end of October, the number of online banking personal
customers had exceeded 21 million, and that of corporate customers exceeded 450,000.

Currently, with a view towards operational transformation and competitiveness enhancement,

ABC is building up its e-banking capability in channel sales, operations innovation, overall
services, revenue generation, and efficiency improvement. This on-going upgrading aims to turn
e-banking into a major operation channel, product promotion platform, and service window for
the Bank. Moreover, e-banking technology will relieve the burden of counter-based business,
and thus lower operation costs.
ABC Online Banking Wins "The Best of 2009" Award
2009.03.08

ABC online banking was awarded the title of "The Best Online Banking Service of 2009" at the
"Impact on China" Tencent Online Service Awards Ceremony 2009 co-sponsored by QQ.COM,
BTV, Caijing Journal, 21st Century Business Herald, Business Artistry on CCTV, and Voice of
China on CRI.

This year's grand event featured 16 best brands in four major industries, all selected through rigid
screening by experts and online voting from 3.25 million netizens over the course of a month.
According to the experts, there is consensus among all the industries and enterprises that the
Internet can well serve as a medium of consumers' voices in the context of a financial crisis, and
that "consumers' choices of products and brands made during a trying time may weigh more
heavily than at any other time previously".

ABC's online banking is committed to enhancing users' experience and meeting individualized
needs. The new personal online banking introduced in June 2009, for example, is a platform with
upgraded functions, interfaces, individualized settings and security, offering such new services as
real-time inter-bank transfer, micro-finance to farmer households, self-service revolving loans,
fund collection and automated transfer. Additionally, ABC's on-line banking offers several
optimized services: fund custody, Shuang Li Feng products, credit card, book-entry bond, and
Ding Huo Tong function. ABC's online banking is popular among customers because it offers
more services, better performance, higher security, easier operation, and smoother procedures.

By the end of 2009, over 22 million registered customers of ABC's individual online banking
made more than 1.4 billion transactions through the platform, creating a total transaction value of
RMB16 trillion. In 2010, ABC will further improve its individual online banking services by
optimizing procedures and enhancing users' experience.

ABC's New Online Banking Wins "Excellent Banking

Product"Award
2009.09.11
ABC's new online banking won the award for "Excellent Banking Product" at the 2009 China
International Exhibition on Financial Services held on September 5 with the theme of
“Achievement, Challenge, Opportunity and Confidence”.

This newest, redesigned online banking platform was launched on June 6, 2009, an
accomplishment made possible by ABC through years of information collection and work flow
innovation based on the rapid development of e-banking. Dedicated to enhancing users'
experience and meeting individualized needs, the e-banking platform boasts upgraded and
optimized interfaces, menus, individualized settings, functions and security, and has proven
popular among customers for offering more services, better performance, higher security, easier
operation and smoother procedure.

In terms of operation, the most noticeable feature about the new online banking is the re-
designed functions, interfaces and menus, making it more user-friendly and customer-oriented.
As for its services, enhanced transfer payment service and newly added wealth management
services meet diversified needs and ensures money security through information checking and
SMS reminder and other security techniques.

Corporate governance
As an important step of the joint-stock reform, the Bank set up the General Meeting of
Shareholders, the Board of Directors and the Board of Supervisors while also appointing the
Senior Management. This was done in accordance with the Company Law and other laws and
regulations along with the decisions of the State Council on the joint-stock reform of commercial
banks, and with full reference to the successful practice of corporate governance of
internationally leading banks. After the incorporation of the joint-stock company, the General
Meeting of Shareholders, the Board of Directors, the Board of Supervisors and the Senior
Management have improved the corporate governance system and related working rules of the
Bank. They've also defined powers, functions and authorities of main corporate governance
bodies, and guaranteed fulfillment of responsibilities and diligent performance by all sides in
strict compliance with applicable laws and regulations of the Articles of Association of the Bank.
They have shaped step-by-step a successful modern corporate governance system of a modern
commercial bank, a system characterized by independent operation, close cooperation, mutual
check and balance, and effective supervision.
 Xiang Junbo
Chairman,Agricultural Bank of China
 Latest development
ABC loans out 200 billion yuan to Xinjiang
The Agricultural Bank of China (ABC), one of China's biggest four, said Tuesday it will roll out 200 billion
yuan ($2.95 billion) in loans to Xinjiang Uyghur Autonomous Region to support development in the area.
The loaning period will be of 9 years (2011-2020).

The amount of capital loaned will benefit and serve agricultural sectors like cotton, grain, fruits and
livestock products as well as some leading industries in the region like logistics, power generating, low-
carbon energy base construction, etc.

ABC's Online Marketing Activity of e-Banking Wins the

Bronze Award in the Marketing Competition

2010.08.10
After two months of intense competition, "Chamber Escape" e-banking online interactive
activity (the "Chamber Escape") designed by ABC stood out from the other competitors and won
the bronze award in the "MIND Award Tencent Mind Practical Marketing Competition". ABC is
the only winner from the financial sector. 

The competition jury consisted of marketing experts, scholars and celebrities experienced in
advertising and marketing sectors; they followed the standard of "Measurable Effect, Interactive
Experience, Diverse Positioning, and Precise Orientation" and examined the entries from the
aspects of media strategy, execution effect, creative design, and marketing effect and more. The
competition received about one hundred entries, covering six industries including IT home
appliances, fast moving consumer goods, transportation, daily chemical products, clothing,
finance and others, among which there were some influential large-scale international
corporations and multinational corporations such as Lenovo, BMW, Dior and China Mobile.
Experts' analysis found that the large number of entries, the broad covering of industries, the
comprehensive application of online marketing, the creative ideas of the entries, and the high
authority of the professional jury made the results of the competition unprecedented in the online
efficient marketing sector.

The "Chamber Escape" is a brand marketing activity of ABC, pioneering among the peers by
means of online games, starting last year. Interesting and interactive, the "Chamber Escape"
simulates the financial problems encountered in real life, sets different levels, and implants the
business functions and operating processes of ABC e-banking into the different levels. Until
now, the activity has had more than 500,000 participants and received wide recognition for ABC
e-banking products and ABC e-banking brand of Golden Online, laying out a foundation for the
expansion of ABC e-banking business and fulfillment of effective transfer of targeted
customers. 

Since the beginning of this year, ABC has been insisting on seizing the market high ground and
market shares by setting the year of 2010 as the "ABC Year of E-Banking Marketing".
Moreover, by taking "Brand Building, Constant Activities, All-around Advance, Combination of
Overall and Partial Promotion" as the principle of activities, ABC has been enhancing the
promotion of e-banking business marketing, and implementing the marketing strategy of Golden
Online. A series of activities have been carried out including "Experience Gold Online"
marketing and promotion action and "Focusing on 2010--- Sheng Shi Golden Online"
comprehensive e-banking marketing activities. Furthermore, ABC launched brand marketing
activities with Kaspersky, Tencent Network, Eastern Wealth Network and other corporations,
which greatly increased the influence and competitiveness of the Golden Online, and helped
create a good environment for the development of ABC e-baking business.