Case Study

ICBC & China Credit Equals Gold No. 1 (B)

3 pages
December 2015
Reference: IMD-7-1765

This case focuses on shadow banking in China, and in particular, on the issue of a product, named the China Credit Equals Gold Trust No.1, with the support of the largest Chinese bank, ICBC. Based on the ‘China Credit Equals Gold’ investment product sold to investors in 2012, the case allows for discussion on Chinese shadow banking pros, cons and linkage to mainstream regulated banking. It also triggers a discussion on Chinese non-conventional investment products.

Learning Objective

Understand: 1) What are the commercial risks and rewards to ICBC in marketing the China Credit Equals Gold Trust wealth management product; 2) What are the systemic risks created by the Chinese shadow banking system; 3) What are the implications of the decision to bail out investors in China Credit Equals Gold Trust No. 1; 4) What are the implications of the China Credit Equals Gold No. 1 case to investors.

Keywords
Banking, Shadow Banking, Deposit, Intermediation
Settings
Asia, China
Industrial and Commercial Bank of China, Finance and Insurance, Banking
2012-2013
Type
Published Sources
Copyright
© 2015
Available Languages
English
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series
  • ICBC & China Credit Equals Gold No. 1 (A)
  • ICBC & China Credit Equals Gold No. 1 (B)
This case study is part of a series
  • ICBC & China Credit Equals Gold No. 1 (A)
  • ICBC & China Credit Equals Gold No. 1 (B)
Discover our latest research
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics
ICBC & China Credit Equals Gold No. 1 (A)
By Nuno Fernandes Derek Watson Dolores Sanchez Jack Clarke and Simon Faneco
Case reference: IMD-7-1764 ©2015
Summary
This case focuses on shadow banking in China, and in particular, on the issue of a product, named the China Credit Equals Gold Trust No.1, with the...
Reference IMD-7-1764
Copyright ©2015
Copyright owner IMD Copyright
Organization Industrial and Commercial Bank of China
Industry Finance and Insurance, Banking
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications

ICBC & China Credit Equals Gold No. 1 (B)
By Nuno Fernandes Derek Watson Dolores Sanchez Jack Clarke and Simon Faneco
Case reference: IMD-7-1765 ©2015
Summary
This case focuses on shadow banking in China, and in particular, on the issue of a product, named the China Credit Equals Gold Trust No.1, with the...
Reference IMD-7-1765
Copyright ©2015
Copyright owner IMD Copyright
Organization Industrial and Commercial Bank of China
Industry Finance and Insurance, Banking
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications