Dual Currency Investment

Dual Currency Investment

Risk Disclosure and Disclaimer

Whilst every care has been taken in preparing the information below, the Bank makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. The information below is not and should not be regarded as an offer to sell or a solicitation for an offer to buy any financial product, and should not be considered as investment advice.

The information below is only a brief introduction of the following product. If you are interested to know more about this product, please contact the Bank and carefully read the product description pack.

This investment product is a non-principal protected investment product with floating return involving high investment risks. You may suffer significant loss of principal due to market fluctuation. Investors should fully understand the investment risks and act prudently in making the investment decision. Dual Currency Investment is not a deposit, and has obvious difference from a deposit. The Bank does not provide any guarantee or promise on the principal or return of the product.

• Return and Principal Risk: You must recognize the possibility of loss caused by exchange rate fluctuation. Such loss may offset the coupon earned on the investment and may even result in losses in the principal amount of the investment. If you choose Dual Currency Investment (Basic Type), under circumstance of extreme exchange rate fluctuation, the loss may even cover the whole principal. If you choose Dual Currency Investment (Partially Principal Protected At Maturity Type), under circumstance of extreme exchange rate fluctuation, you may have no return and be paid only 80% principal (i.e. lose 20% the principal invested).
• No Early Redemption by Investors: You are not allowed to redeem all or part of the Dual Currency Investment prior to maturity (inclusive). Please ensure you have made adequate provision for emergency cash needs.
• Foreign Exchange Risk: If the investment currency or the linked currency is not your base currency, and you choose to convert the investment proceeds back to your base currency at maturity, your returns could be affected negatively or positively due to exchange fluctuations. If you have to exchange from other currencies into the investment currency for the purpose of wealth management, there is also foreign exchange risk in this as well.

Please carefully read the product description pack to learn the potential risks in detail.

Dual Currency Investment is a structured investment product. By linking to the performance of foreign exchange rates, it allows you to earn potentially higher return, as well as to meet your investment needs of foreign currencies.

Product Features

• Flexible investment tenors: You can choose the suitable investment tenor within the range of 1 week to 1 month.
• A wide selection of currencies: You can choose one investment currency and one linked currency, which can be USD, HKD, AUD, CAD, EUR, GBP, JPY, SGD, CHF and NZD for foreign currency exchange accounts or USD, HKD, EUR and JPY for foreign currency note accounts.
• A conversion rate chosen on your own: You can choose on the Trade Date the preferred Conversion Rate between the investment currency and linked currency based on prevailing currency market conditions and your views on the currency market.
• Different option of risk levels: 2 product types: Basic Type and Partially Principal Protected At Maturity Type, with different risk levels for your selection to meet your risk appetite and investment objectives.
• Potential higher investment return: You have a chance to receive principal and higher yield (in investment currency) in case that your judgement on currency market movement proves right (that is the investment currency depreciates or slightly appreciates against the linked currency).

How the product works:

You can choose on the Trade Date a product structure, an investment currency, a linked currency, investment tenor and conversion rate to make a deal where the minimum investment amount is USD 16,000 (or it is equivalent in other currencies).

The Bank observes the market rate at Fixing Time on Fixing Date (i.e. the Fixing Rate) :

- With respect to Dual Currency Investment (Basic Type):

1. If the Investment Currency depreciates or slightly appreciates against the Linked Currency and does not breach the Conversion Rate, the principal and coupon will be paid in the Investment Currency at maturity;

2. If the Investment Currency appreciates against the Linked Currency and breaches the Conversion Rate, the principal and coupon will be converted to the Linked Currency at the Conversion Rate and paid in the Linked Currency at maturity.

- With respect to Dual Currency Investment (Partially Principal Protected At Maturity Type):

1. If the Investment Currency depreciates or slightly appreciates against the Linked Currency and does not breach the Conversion Rate, the principal and coupon will be paid in the Investment Currency at maturity;

2. If the Investment Currency appreciates against the Linked Currency and breaches the Conversion Rate, but not reach the Strike Rate of Partial Principal Protection At Maturity, the principal and coupon will be converted to the Linked Currency at the Conversion Rate and paid in the Linked Currency at maturity;

3. If the Investment Currency appreciates against the Linked Currency and reaches or breaches the Strike Rate of Partial Principal Protection At Maturity (hereinafter also referred to as "Strike Rate"), you will receive 80% of principal invested which will be paid in the Investment Currency at maturity.

Suitability for you:

1. Dual Currency Investment (Basic Type) is likely to be suitable for you if:

• Your specific attitude toward investment risk is "Balanced" or above; and
• You have relevant experience of foreign exchange investment; and
• You have ever subscribed for the Deposit Plus which was provided by the Bank before.

2. Dual Currency Investment (Partially Principal Protected At Maturity Type) is likely to be suitable for you if:

• Your specific attitude toward investment risk is "Stable" or above; and
• You have relevant experience of foreign exchange investment; and
• You have ever subscribed for the Deposit Plus which was provided by the Bank before; or you are a "Sophisticated Investor" according to the result of "Customer Segment Declaration".