Dual Currency Investment and Enhanced Yield Investment - Structured Deposit Product

HSBC Structured Investment products are usually linked to financial assets such as equities, indices, foreign exchange rates or securities. The potential return of Structured Investment products is determined by performance of the linked financial assets, product portofolio and detailed terms and conditions. Please note that the potential return of the Structured Investments is not a 100% reflection of the actual performance of the underlying assets. We offer structured products related to Foreign Currency Investment in the following two types: Dual Currency Investment (DCI), and Enhanced Yield Investment Product (EYI), which is 100% capital protected at maturity. We will also release other Foreign Currency Investment Products from time to time for customers to chose based on different risk preferences.

Major risks of Foreign Currency Investment Products include:

• Return and Principal Risk: Unlike deposits, Foreign Currency Investment has an investment element. The actual return on Foreign Currency Investment is not guaranteed and the investment is not principal protected, so you may suffer a loss in the principal. 
• Market Risk: Many factors can affect the level of the relevant exchange rates, including the political and economic environment, business conditions, investor sentiment and confidence. All of these factors may have an effect on the local and/or global markets. 
• Foreign Exchange Risk: You will be subject to fluctuations in the relevant exchange rate, which could affect the amount of the foreign exchange linked coupon payable on this product, either negatively or positively.
• Credit Risk: This structured product may involve credit risk of the Product Provider which may affect the ability to meet its payment obligations set out in the agreed terms. 
• Inflation Risk: You need to consider and recognise that inflation during the tenor of this product may affect the real value of your proceeds.
• Concentration Risk: You need to consider diversifying your investment and allocating the value of the fund across different products to avoid risk due to investment concentration.
• Liquidity Risk: You may not be able to liquidate or early redeem all or part of this investment as and when you need to do so or at an amount equal to or greater than the principal amount. In addition, you cannot transfer all or part of the investment.
• Tax risk: If any applicable tax law and/or regulation (including interpretation thereof) is/are promulgated or amended in China and/or other territory(ies) and the result thereof is that the payment under this product shall be subject to tax, such tax shall be borne by the customer.