Interview with the Chairman of OCG - Mr. Yu and the Head of BOCOM - Mr. Yang Yu Ming

The Head of BOCOM (Hainan Branch) - Mr. Yang Yu Ming
Incorporated in 1908, BOCOM is one of China's only two commercial banks with a century of legacy. Besides being one of the first four China's commercial banks, it is also one of the first note-issuing banking institutions. In 1956, except for its Hong Kong branch that continued its normal operation, BOCOM's domestic businesses were merged into the People's Bank of China and the China People's Construction Bank, which was built on a strong operational base provided by BOCOM. To keep pace with China's economic reforms and developments, a restructuring of BOCOM was approved by the State Council on 24th July 1986, as a launching pad for the country's financial reforms. On 1st April 1987, the restructured BOCOM formally launched its operation to become China's first and largest state-owned joint-equity commercial bank, to date.

BOCOM was listed at Hong Kong stock market on 23rd June 2005, and became the first bank from the mainland coming into Hong Kong stock market. BOCOM made one-step forward to become the top international finance corporation.

By providing an excellent range of financial services and credit support, BOCOM has attracted a high-caliber clientele base in recent years, including multinational companies, conglomerates, foreign-funded investment companies, hi-tech firms and other growth enterprises. Having developed a range of brand-name products, BOCOM consistently comes out on top in China, given the transaction value of Forex Kit services, its asset custody business, the transaction volume of its Pacific Card services and the amount of its bank deposits.

The Chairman of OCG - Mr. C. F. Yu
C. F. Yu is the driving force behind Oriental City Group (OCG). Mr. Yu founded OCG with the vision of its flourishing success as a leading financial services provider in Hong Kong, Greater China and Asia. He leads a team of professionals with extensive industry knowledge and experience, and oversees OCG's diversified business groups.

Mr. Yu hails from a solid financial and banking background with more than 20 years of experience at the top financial institutions, including Morgan Stanley, AIG, Allianz Dresdner, VISA International, and American Express.

Before establishing OCG, Mr. Yu served as Head of Investment Funds at Morgan Stanley, which he was instrumental in starting up. Key contributions involved introducing quality investment funds to top Asian institutional and retail clients.

Mr. Yu worked at the AIG Group prior to Morgan Stanley, where he established AIG Asset Management (Asia) Ltd in Hong Kong. As Head of AIG Asset Management, Mr. Yu introduced long-term investment funds to investors in Hong Kong.

Before AIG, Mr. Yu worked at Allianz Dresdner Asset Management. As Head of Asia Marketing, Mr. Yu's greatest milestones were in setting up a regional distribution network of investment funds for Dresdner and launching the first ever Investment Credit Card, and the card payment system for investment products and services.

Before Dresdner, Mr. Yu served in senior positions at card industry's major institutions, including Visa International and American Express.

Founded in 2001, OCG is a pioneer of new generation Financial and Payment Services. OCG specializes in developing quality Lifestyle & Theme Cards with banking partners. Through its diversified Lifestyle/Theme Card Platforms, OCG delivers added value to business partners while providing cardmembers with quality platform benefits and payment experience.

With the challenging competition in the card and payment industry, OCG proves there is a superior way to serve the needs and enrich the lifestyles of consumers. OCG is delivering a series of lifestyle-driven theme cards through a productive business model. It provides exclusive and unique privileges to customers with specific lifestyle interests, plus added value to business partners (banks and lifestyle industries) that surpass traditional card marketing boundaries.

Since February 2002, OCG has teamed up with United Overseas Bank ("UOB") to launch the first Golf VISA. In January and May of 2003, OCG and UOB launched Lady's VISA and Man's VISA respectively. In December 2003, Family VISA was launched.

Synchronizing the corporate strategy and the launch of first Lifestyle/Theme card in China, OCG established a strong partnership with Bank of Communications (BOCOM) in February 2005. OCG and BOCOM launched Pacific - OCG Golf Card on 26th July 2005, which is the first Lifestyle Golf Card in China.

In addition to Card-issuing business, OCG's business scope also extends to Card acceptance. OCG teams up with China Union pay (CUP) to develop international market for CUP card acceptance and the merchant acquiring business. OCG Thailand was established in October 2004 and became one of the first financial institutions to help China Union pay to launch CUP card acceptance services outside of China, so as to meet the growing demand and spending need of the ever-increasing out-bound Chinese tourists around the globe.

OCG has already attained the largest Golf Card membership base in Asia. Its goal is to be a leading financial institution in Greater China, Asia, and qualified markets worldwide.

Press edited version:

Media: Very glad that you can meet us in your spare time, we know you are very busy. Let's show our first lifestyle Golf Card first because many people are not familiar with it. And then please introduce the functions of this Golf Card. Thank you.

Mr. Yu: Golf Card was positioned to appeal to the ever growing Golf population in China, with the increasing demand and expectation from this sophisticated market segment, OCG was aiming to deliver the first and the best Golf Card payment and usage platforms in China to meet the needs of the golfing customers and cardmembers, so they can enjoy a network and platform of quality golf products and services not only around the nation's top quality golf establishments, but also the best golf facilities around the world.

Mr. Yang: The Pacific-OCG Golf Card was targeted to the Golf customers who had high expectations on quality of services, so the Golf Card was designed with superb translucent look, and the Card was welcome at the most prestigious golf courses and golf-related outlets at Hainan, including Golf Practice Ranges, Golf Shops and Golf Travel Agents, and also a variety of quality Lifestyle-related merchants, such as airlines, hotels and restaurants. OCG from Hong Kong was responsible for all the marketing-related activities of the Card, and the Golf Card will entitle gifts, accumulate bonus, fabulous awards and many other ways to give our customers pleasantly surprised.

Mr. Yu: We were issued Lifestyle credit cards in Hong Kong. Golf is a sort of sports which has been chosen by people with quality lifestyle, it is suitable to top customers. The Card was launched in Hainan for over one month and received fantastic response. The prospective cardmembers totality will breakthrough twenty thousand by the end of 2005.

Media: Can Mr. Yang share with us how you initiated the idea of Lifestyle card, the development process and how you gained support?

Mr. Yang: The development of Lifestyle cards is directed to a specific market customer group. Prior to the issue of Pacific-OCG Golf Card, we had been meeting other institutions. Eventually, we identified OCG and had detailed analysis of its credit rating and management. The issuing process was challenging. The divergence of culture and management style had added challenges to our negotiations. We had numerous meetings to comprise on the card design, contracts, and the name "cardholder" and "card members" for Mainland and Hong Kong holders respectively.

Media: Are there any impacts of this kind of golf-cards to the traditional cards?

Mr. Yu: If there is any, I would anticipate a win-win situation and stimulate consumption. We had experience in Hong Kong. The experience allows the rapid development in the Mainland. There are various quality organizations in the Mainland cooperating with us, we had chosen BOCOM to issue our first card because BOCOM partner in Hong Kong – the solid foundation of HSBC and the reputation and quality of services of BOCOM. At present, BOCOM is listed in Hong Kong; we believe there will be more cooperation in the future.

Mr. Yang: Lifestyle card is different from ordinary cards. The annual fee is higher. For example, Pacific-Golf Card is $30, which is 3 times as high as common card. Under normal circumstances, ordinary card holders are not going to switch to Lifestyle card. Currently, the special annual fee promotion will reduce the annual fee to a permanent $10 to any applicants apply before 31st December this year. As aforesaid, Lifestyle card is our strategy in progressing to high-end customers. Customers will receive our high quality services in respect of the services they expect.

Media: OCG Group established in 2001. It has grown into the present size in three years time. Is the process smooth? Can you share the key to success with us?

Mr. Yu: OCG Group developed into a multinational enterprise in a few years time. We had issued numerous cards to different level of consumers, including golf-card, health and beauty card series for women and men, and Family card etc. There are now over hundreds of POS Card terminals in cooperation with China UnionPay in Thailand, targeting to Mainland travellers. We aim to provide these groups of consumer the best services.

Media: Is there any effect on Hainan golf's business by issuing this kind of credit cards?

Mr. Yang: Pacific-OCG Golf Card will attract large number of non-local consumers. This will bring in huge foreign economic benefits to Hainan and stimulate the expenditure on golf and other Lifestyle-related services.

Media: What's Mr. Yu's outlook of Hainan's market?

Mr. Yu: In one month since we issued the Golf Card, the number of cardmembers are now more than 5,000. I believe the outlook of China will be much better than Hong Kong.

Media: Thank you very much for Head of BOCOM, Mr. Yang and Chairman of OCG, Mr. Yu. We wish all the best to BOCOM Hainan Branch and OCG's Pacific-OCG Golf Card will be widely appreciated and expanding to the whole China market.

Additional information on press release of "Launch of Pacific-OCG Golf Card":

Bank of Communications and Oriental City Group Limited Jointly Launch
Pacific-OCG Golf Card
First Golf Theme Payment Card in China

Bank of Communications ("BOCOM") and Oriental City Group Limited ("OCG") jointly announced the launch of Pacific-OCG Golf Card ("Golf Card") in China today. Golf Card is OCG's first debit card jointly launch with a bank in China. The launch signifies the first milestone of OCG's card issuing business in China. In the future, OCG will launch different theme payment cards in China.

Mr. Yang Yu Ming, Branch Manager, Bank of Communications Hainan Branch said developing co-brand cards is the direction for the bank cards industry in China. Issuing banks can explore the marked of the designated potential group of customers via the co-brand card projects. Meanwhile, the banks can provide tailor-made service to the customers.

Mr. Yu, Chairman, Oriental City Group Limited said OCG and BOCOM have established a strategic partnership which can benefit both company's card issuing business and the long term development. Both companies can develop and strengthen each other's business in usage of resources, marketing and information exchange to achieve Win-Win situation. Pacific-OCG Golf Card is the theme debit card jointly launched with BOCOM, which is OCG's first step in China. Meanwhile, OCG is confident of the prosperous economic growth in China and also the popularity of Golf. In the near future, OCG will launch different theme payment cards in different cities in China. The Golf Card launching in Hainan Province is OCG's strategic selection. In this province, there are many golf courses and is rich of golf resources. Actually, Hainan Province and Golf are dependable on each other.

Pacific-OCG Golf Card is targeted at a group of golfers with high spending. The Golf Card has tailor-made the benefits to match their spending mode. OCG offers different kinds of benefits to cardmembers e.g. golf courses, golf pro-shop, hotels, restaurants, travel, etc. In addition, cardmembers can accumulate bonus point to win fabulous awards and gifts in lucky draw. Successfully apply for Pacific-OCG Golf Card, the cardmember is entitled over $1000 welcome gifts e.g. free green fee, golf pro-shop shopping coupon and sunglasses shopping coupon.

This card offers to cardmembers is not limited to spending benefits and awards, but also comprehensive protections. Oriental City Group limited invites Ping An Property & Casualty Insurance Company of China Ltd to provide brand new golf insurance protection plan. Cardmembers can enjoy the game with peace of mind. The coverage includes third parties liability, club broken, sunstroke and special compensation for caddies. Last but not least, the protection is also covering Hole-in-One award. Crewmember can enjoy the game under comprehensive protection.

Mr. Yang and Mr. Yu expected that Pacific-OCG Golf Card will become very popular in Hainan Province especially in golfers and golf lifestyle lovers.