Investment alternatives
The Industrial and Commercial Bank of China (ICBC), China National Cereals, Oil & Foodstuffs Corp and Zhonghai Trust Co Ltd. Have launched China’s first wine trust project hoping to be fruitful in the tough global capital market. Different from other wealth management products, the unit of the wine trust is measured by the “barrel”, which contains 300 bottles of wine, with each investor limited to buy no more than two barrels. It is said by now the project has been more than double oversubscribed, facing only ICBC’s private banking customers and enterprise customers.
Facing the tough global capital market, banks are searching for investment alternatives. Wines are always with high investment values and could provide a more steady income it fits the quality of an investment alternative. To profit more and more banks are paying attention to the investment alternatives in the tough circumstance. China Minsheng Banking Corp, for instance, has launched a fund investing in fine arts. Industry statistics show that in the last 20 years, long-term invested well chosen wine portfolio could bring an annual return of 10 to 12 percent. And it is less volatile than stocks and shares, and not closely related with the stock market, no wonder it is more attractive to investors looking to diversify a portfolio.
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