2004 Media Releases

Deutsche Bank today announced the launch of a new, wholesale capital protected China product for sophisticated Australian investors, Capital Protected ChinaOpportunity Receipts.

Receipts are designed for sophisticated investors seeking exposure to the exciting growth potential in the Chinese equity market without taking on the risk commonly associated with emerging market investments. “Investors can be confident that they will receive all the upside performance without being subjected to the downside, because the Receipts are capital protected - provided they are held for the full term”, says Pia Cooke of Deutsche Bank Structured Product Sales. “And as one the best global equity performers last year, China continues to show potential for further growth making it an exciting place for future investment”.

Receipts not only offer investors the opportunity to diversify their portfolios, they also offer access to market and portfolio construction techniques that can be difficult to access in Australia.

“Essentially, investors are investing in a dynamically managed portfolio of Chinese shares, known as the ChinaOpportunity^TM. Euro Price Return Index which is managed by Deutsche Bank”, explains Cooke. “The portfolio consists of 30 shares chosen from a selection pool of Red Chips, B Shares and H Shares, and the portfolio is rebalanced quarterly though quantitative analysis. And although the portfolio is dynamically managed, investors do not pay any application or annual management fees”.

The stock selection process each quarter is stringent. “We select stocks based on quantitative analysis and research”, says Deutsche Bank’s Head of Asian Derivatives Trading, David Sarkis. “Stocks are selected based upon large market capitalisation, high liquidity, high dividend yield, low price to book ratio and low price to earnings ratio. This reassures investors that the portfolio has a set investment strategy focussed on selecting value as well as reducing the broad speculative risks normally linked to emerging market investments”.

The Receipts are a simple way of accessing Chinese equity market performance. Cooke adds,” Investing in Chinese equities can be a difficult process. Finding a broker licenced to deal in Chinese securities and selecting shares in an unfamiliar market can make investing a real challenge. With Receipts, Deutsche Bank does the hard work on behalf of the investor, and because the Receipts are purchased in AUD, investors avoid complicated currency transactions applicable to traditional Chinese investments”.

Investors can monitor the daily performance of their Receipts, as indicative prices will be available on each Trading Day on the Deutsche Bank web site below.

Receipts will be distributed by both Deutsche Bank and Westpac Banking Corp. For a copy of the marketing brochure, Preliminary Pricing Supplement and Information Memorandum, or for further information, please see Deutsche Bank’s structured investments website at www.dbstructuredinvestments.com/china

Further information

Kate Abrahams, Communications & Marketing (61 2) 9258 2416