Jane Chen / Shanghai Daily news

China Minsheng Bank's yuan-dominated investment products have received hot market responses on the first day of selling yesterday, the Shanghai Securities News reported.
In Shanghai, 60 million yuan (US$7.3 million) were sold, by far beating the bank's expectations, according to Minsheng's Shanghai branch.
The investment products include four notes: two one-year term and two  half-year term.
The higher return for a one-year option is 2.943 percent, or 2.808 percent after taxes, which is 56 percentmore than the 1.8 percent of the after-tax banking rate. 
Investors must start their purchases at 10,000 yuan.
"Since the bank promises the yields, the investments are free of risks," said an investor on condition of anonymity.  "Yet they're more profitable than bank deposits or treasury bonds," he added.
Before Minsheng, The China Everbright Bank introduced China's first yuan investment products in October. Hot reactions from investors have forced the bank to conclude the sale ahead of schedule because its 10-million-yuan quota for the Shanghai market was already sold out.
After China's interest bank rate increase late last month, China Everbright has accordingly raised the yield promised for its one-year note from 2.8 percent to 3 percent.
Enthusiastic market reactions indicate a bright future for yuan investment products, a new cash cow for bankers, financial analysts pointed out.
Low risks, stable profits and good fluidity are ensured, they noted, because proceeds from the notes are mainly invested in central bank bills and tradeable treasury bonds.
Upbeat about the rosy outlook of the market, many other banks are preparing to design their own investment products.
The China Merchants Bank and the Guangdong Development Bank have developed their proposals and submitted them to China's banking industry watchdog for approval, while the big-four state-run banks are stepping up their development in this area, according to industry insiders.