09:55 BOC HONG KONG<02388> - Announcement (3) fund and open-ended fund products and mandatory provident fund ("MPF") products, as an intermediary for BOCI-Prudential Manager and BOCI-Prudential Trustee. The Group receives a commission rebate on the basis of a certain percentage of the management fee received by BOCI-Prudential Manager in relation to the guaranteed funds. In respect of open-ended fund products, the Group receives a portion of the service fees received by BOCI-Prudential Manager in respect of the units it sells as a commission. The Group receives commissions based on the number of new members joining the MPF schemes of BOCI-Prudential Trustee referred to it by the Group. The table below sets out the historical commissions and rebates and the New Caps for the fund selling transactions: (HK$ million) 2001 2002 2003 Historical commissions and rebates 29 103 58 2005 2006 2007 New Caps 140 190 250 3. Credit Card Services 3.1 BOC-CC's business in China BOC acts as one of BOC-CC agent banks in connection with BOC-CC's Merchant Acquiring Business in China. Under these arrangements, BOC retains a commission of between 0% to 1.5% of the transaction amount charged to the merchants for credit card transactions in China. In addition, BOC promotes BOC-CC's acquiring business to merchants in China for a percentage of the transaction amount. In relation to over-the-counter cash withdrawals in China whereby the cardholder is charged with a transaction-handling fee of 3% of the amount withdrawn, BOC-CC receives generally 1.5% while BOC retains the remainder of the transaction-handling fee based on the amount withdrawn and this fee is divided between BOC and BOC-CC. 3.2 BOC's Great Wall International Card (the "International Card") BOC-CC provides operational, administrative and technical support services for the International Card to BOC. BOC-CC retains 50% of the profits derived from the operations of the International Card, excluding the annual fees. In addition, pursuant to the incentive programme, BOC-CC pays an annual bonus based on the number of new cards issued and the total transaction volume to BOC. 3.3 BOC's Great Wall Renminbi Card (the "Renminbi Card") BOC-CC provides agency services to BOC for the Renminbi Card. BOC-CC receives a commission on the basis of two-thirds of the annual fees of any cards issued as a result of its agency as well as 50% of any card replacement charges, interest on amounts outstanding and commissions net of administration charges levied on each transaction. BOC-CC also provides back-office settlement and other services to BOC Macau branch and BOC Zhuhai branch in connection with their Renminbi Cards. BOC Zhuhai branch receives 30% of the income generated, while BOC-CC and BOC Macau branch share the remaining 70% of the income generated. 3.4 BOC-CC's credit card business in Macau Each of BOC Macau branch and Tai Fung Bank Limited ("Tai Fung Bank"), a subsidiary of BOC, promotes BOC-CC's Hong Kong dollar and Macau pataca settled credit cards bearing their respective names, to their customers in Macau and provides other services to BOC-CC such as processing and approving applications received and collecting payments for such credit cards. In return, BOC Macau branch receives 70% of the profits arising from the cards issued as commission and Tai Fung Bank receives a commission payment from BOC-CC based on the applications received through Tai Fung Bank and the use of cards bearing its name. In addition to their card issuing services, BOC Macau branch and Tai Fung Bank provide services for BOC-CC's Merchant Acquiring Business in Macau. In return, they receive commission ranging from 0% to 0.25% depending on the commission charges to merchants by BOC-CC. 3.5 Training Services BOC provides training to its staff in its provincial branches throughout China in connection with BOC-CC's business in China in return for a training subsidy of HK$2 million per annum or such other amount as may be agreed between BOC-CC and BOC from time to time.