Personal Banking
Bonds Trading Service
For further information, please visit any of our branches or call our enquiry hotline at (852)2616 6628.
Important Notice:In light of the latest regulatory requirements related to Vulnerable Customer Assessment, starting from 24 May 2021 ("Effective Date"), we will update the Questionnaire on Investment Preference (QIP). As a consequence, the QIP that customers have completed and provided to us before the Effective Date will be deemed to be overdue as from the Effective Date.
Starting from the Effective Date, customers are required to complete the updated QIP for placing the subscription order of the investment products, which require a valid QIP to be in place.
<Click for more details>
Risk of bonds trading
The
prices of bonds fluctuate, sometimes dramatically. The
price of a bond may move up or down, and may become
valueless. It is as likely that losses will be incurred
rather than profit made as a result of buying and
selling bonds.
Key Risk Disclosures
Investment risk: The prices of bonds may go up and down and may be volatile. The bonds may even become worthless. Buying and selling bonds may not necessarily result in any profit, and may sometimes result in loss.
Issuer / Guarantor credit risk: The return on bonds is linked to the credit of the Issuer and Guarantor, as applicable. The credit ratings assigned by credit rating agencies do not guarantee the creditworthiness of the Issuer and Guarantor, as applicable. Your receipt of principal and interest payments depends on the credit of the Issuer and Guarantor, as applicable, and no other companies. In the event that the Issuer defaults, it is possible that you may lose all your investment, including the principal.
To be distinguished from savings or time deposits: The bonds are an investment product and are not equivalent to a time deposit, and are unsecured and are not guaranteed (if there is no guarantor). The bonds are NOT protected deposits and are NOT protected by the Deposit Protection Scheme in Hong Kong. The bonds are not principal-protected. The investment in bonds involve risks not associated with regular bank deposits and should not be regarded as a substitute for regular savings or time deposit.
Not covered by the Investor Compensation Fund: The bonds are not covered by the Investor Compensation Fund.
Interest rate risk: Changes in interest rates may have a significant impact on the market price of the bonds. For example, bond prices generally fall when interest rates rise – In this situation, you may incur a loss from the decrease in market price of the bonds if you sell the bonds before the final maturity date.
Currency risk: For bonds not denominated in your home currency, if the currency in which the bonds are denominated depreciates against your home currency during your holding period, and if calculated and settled in your home currency, exchange rate fluctuations may have an adverse impact on, and the potential loss may offset (or even exceed), the investment return.
Tenor risk: The bonds have a specified investment period. The longer the investment period of the bonds, the more likely changes in interest rates, exchange rates, market environments and the Issuer’s financial and operating conditions may affect the bond value during the investment period. Your actual return (if any) may be substantially lower than expected and you may even suffer losses.
Liquidity risk: The bonds are designed to be held to maturity and there may be no active secondary market quotations for the bonds. If you try to sell your bonds before maturity, it may be difficult or impossible to find a buyer, or the sale price may be much lower than the amount you had invested. You may suffer a loss if you sell your bonds before maturity.
Reinvestment risk: Bondholders face re-investment risk when the Issuer exercises its right to redeem the bond before it matures. Bondholders may not be able to enjoy the same rates of return when they re-invest their funds in other investments.
Early Redemption risk: If the Issuer is allowed to early redeem, including but not limited to make whole redemption, the bonds prior to maturity under the provisions may be stated in the relevant offering documentation, which is subject to certain trigger events, including but not limited to force majeure, regulatory changes, rating changes, changes in the accounting treatment or taxation regime. Investors may lose up to all their initial investment in bonds at worst case if any such circumstances were to happen.
Other risks: There may be other risks associated with the investment of each particular bond which are not mentioned above. Please refer to the offering documentation of the Bonds for other risk factors relating to the Issuer / Guarantor and the Bonds.