Laurentian Bank of Canada is offering a new risk-free principal-protected investment product with exceptional return potential.

Starting on Tuesday, investors can take advantage of China’s economic growth through the China Objective Note, which invests in 30 companies based in 11 countries, excluding China, with significant market capitalization and with current presence in China that have publicly announced their intention to expand their operations in the country.

Laurentian Bank’s China Objective Note is an ideal investment product for portfolio diversification. It includes stocks of various companies operating in eight different industry sectors.

With the overweight position in the industrial products, basic consumption and information technology sectors, and a moderate weight exposure in the energy, financial services and telecommunications sectors, China Objective Note offers better diversification than the S&P/TSX composite index. Moreover, the portfolio performance will not be affected by any currency variation, which reduces the associated risks.

The principal amount is guaranteed at maturity by Laurentian Bank of Canada and it’s offered in five-, seven-, and 10-year terms. The maximum return is 65% for the five-year term, 110% for the seven-year term and unlimited for the 10-year term. The minimum initial investment is $1,000, and in increments of $100 thereafter. It’s eligible for non-registered accounts, RRSPs and RRIFs. It has no management fee and its issue date is June 21.

“This Note was designed for investors wishing to take advantage of China’s economic growth, risk-free. China’s economy has grown by an average of 9% over the past 10 years. According to many economists, it is just the beginning of China’s economy boom. They predict that at this rate, China, now ranked sixth in the world, will become the second largest world economy by 2016,” says François Barrière, vice president, business development, foreign exchange and international services.