Personal Banking
Structured Investments
This is a structured investment product involving derivatives. The investment decision is yours but you should not invest in this product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
This product is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.
Investment involves risks. You should not invest in Structured Investments based on this page alone. You should read and understand the Bank’s Conditions for Services and all of the offering documents including the relevant term sheet, Important Facts Statement and the Structured Investments Application Form, before deciding whether to invest in this product.
Key Product Features
*Subjects to the requirement of “Principal Amount” in relevant term sheet
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>The following risk disclosure statements cannot disclose all the risks involved. Prior to trading or investment, you should collect and study the information required for your investment. You should carefully consider whether trading or investment is suitable in light of your own financial position and investment objectives. You should seek independent financial and professional advice before trading or investment. If you are uncertain of or have not understood any aspect of the following risk disclosure statements or the nature and risks involved in trading or investment, you should seek independent advice.
- Not a time deposit – FX Linked Investment – European (Bullish / Bearish) 100% Principal Protected is NOT equivalent to, nor should it be treated as a substitute for, time deposit. It is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.
- Derivatives risk – FX Linked Investment – European (Bullish / Bearish) 100% Principal Protected is embedded with FX option. Option transactions involve risks and your loss could be substantial.
- Limited potential gain – The maximum potential gain of this product is limited to the nominal interest calculated at the High Interest Rate percentage.
- Principal protection at maturity only and the Principal Amount and Interest will be paid in the Investment Currency – The principal protection feature is only applicable if this product is held to maturity. On the maturity date, customer will get back the principal amount plus the interest return (calculated at the High Interest Rate or the Low Interest Rate) in the investment currency.
- Market risk – The return on FX Linked Investment – European (Bullish / Bearish) 100% Principal Protected is limited to the nominal interest payable, which will be dependent, to at least some extent, on movements in some specified currency exchange rate. Whilst the possible return may be higher than conventional time deposits, it is normally associated with higher risks. When the fluctuation of the currency exchange rates differs from what the Customer expected, the Customer may have to bear the consequential loss. Currency exchange rates are affected by a wide range of factors, including national and international financial and economic conditions and political and natural events. The effect of normal market forces may at times be countered by intervention by central banks and other bodies. At times, exchange rates, and prices linked to such rates, may rise or fall rapidly. Exchange controls or other monetary measures may be imposed by a government, sometimes with little or no warning. Such measures may have a significant effect on the convertibility or transferability of a currency and may have unexpected consequences for the FX Linked Investment – European (Bullish / Bearish) 100% Principal Protected.
- Liquidity risk – FX Linked Investment – European (Bullish / Bearish) 100% Principal Protected is designed to be held till maturity. You do not have a right to request early termination of this product before maturity. This product is unlisted and there is no secondary market.
- Credit and insolvency risk of the Bank – The Bank is acting as the principal of this investment product. This product is not collateralized. When you invest in this product, you will be relying on the Bank’s creditworthiness. If the Bank becomes insolvent or defaults on its obligations under this product, you can only claim as an unsecured creditor of the Bank. In the worst case, you could suffer a total loss of your principal amount.
- Risk of early termination by the Bank – The Bank has the right (but not the obligation) to terminate this product early upon occurrence of certain events. If this product is terminated by the Bank early, your return of this product might be negatively affected.
- Currency risk – If the investment currency is not in your home currency, and you choose to convert it back to your home currency upon maturity, you may make a gain or loss due to exchange rate fluctuations. In some cases, even if you receive the High Interest from this product, if the investment currency depreciates against your home currency, you may still suffer a loss if you convert it back to your home currency upon maturity.
- RMB currency risk – RMB is subject to the PRC government's control (for example, exchange restrictions). Besides, there is no guarantee that RMB will not depreciate. If customers convert Hong Kong Dollar or any other currency into RMB so as to invest in RMB denominated investment products and subsequently convert the RMB redemption proceeds back into Hong Kong Dollar or any other currency, you may suffer a loss if RMB depreciates against Hong Kong Dollar or other currency.
- Not covered by the Investor Compensation Fund – This product is not covered by the Investor Compensation Fund.
- Not the same as buying either currency of the currency pair – Investing in this product is not the same as directly buying the currencies of the currency pair.