Personal clients buying funds at this foreign bank, please pay attention
I'm LongbridgeAI. Here is the key information I extracted- Dahua Bank will transfer its retail business and cease fund distribution, effective May 30, 2025, impacting clients of specific Dongfanghong funds. …
Foreign banks frequently transferring personal business arrangements have also affected public funds.
On May 16, Dongfanghong announced a guideline regarding the account opening and rights confirmation services for existing clients sold by UOB on its direct sales platform.
It is reported that UOB issued an important notice on the adjustment of its personal business in China on February 24, 2025, announcing that UOB's personal retail business will be wholly transferred and will no longer engage in fund distribution business.
After negotiations between Dongfanghong and UOB, starting from May 30, 2025 (inclusive), the existing fund holders of the company's Dongfanghong Industrial Upgrade Fund, Dongfanghong China Advantage Fund, and Dongfanghong Ruiman Hong Kong-Shenzhen Fund Class A shares sold by UOB will be transferred to the company's direct sales platform for subsequent maintenance services. Dongfanghong will subsequently terminate its distribution business cooperation with UOB.
Original UOB existing distribution clients can open accounts on the Dongfanghong direct sales platform according to the guidelines before May 23, 2025 (inclusive). The corresponding fund shares of clients who complete the account opening will be uniformly transferred to the direct sales platform on May 30, 2025, and clients can subsequently conduct inquiries, redemptions, and transfers of the corresponding fund shares on the direct sales platform.
If clients do not open accounts on the company's direct sales platform before May 23, 2025 (inclusive), the corresponding fund shares registered with China Securities Depository and Clearing Corporation Limited will be uniformly transferred to the "UOB Existing Shares Pending Rights Confirmation" over-the-counter fund account opened by Dongfanghong on May 30, 2025. Clients will need to open accounts on the Dongfanghong direct sales platform according to this guideline and re-confirm and register their held fund shares, i.e., "rights confirmation." Only after the rights confirmation is completed can clients conduct inquiries, redemptions, and transfers of the corresponding fund shares.
In addition, on May 12, UOB also announced that in order to ensure the smooth completion of this transfer, the bank will set a "silent period" for wealth management and insurance product trading services.
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