Structured Deposits (launched by HSBC China)

This product is a structured deposit which is embedded with derivatives. It’s linked to specific underlying assets, which enables depositors to obtain relevant returns (if any) while taking certain risks.

The funds raised by the product will be centrally managed by the Bank, in accordance with the principle of separation management of deposits and derivative transactions. The principal amount is centrally managed by the Bank internally. The derivatives embedded in the product are invested in the relevant derivative market of the reference underlying, and the final performance of the product is linked to the derivatives component.

You should understand that investment in this product is not the same as an investment in the underlying, and the return of the product does not represent 100% participation in the performance of the underlying. You will not be entitled to any rights related to the underlying.

The major risks of purchasing a Structured Deposits include: principal risk, return risk, early redemption risk and foreign exchange risk.

• Principal risk and return risks
  Structured Deposits are NOT equivalent to a traditional deposit. They involve derivatives and therefore returns are not guaranteed. In the worst scenario, the investor may only get back the protected part of the principal as stipulated by the product subscription document. 
  
• Early redemption risks
  You are not allowed to withdraw all or part of the Structured Investment Product prior to maturity. Please ensure you have made adequate provision for emergency cash needs.
  
  If your early redemption request is accepted by the bank, the amount will be calculated and determined by the bank subject to market conditions. Upon early redemption, you may not enjoy 100% CNY capital protection and may suffer capital loss, or even significant capital loss.
• Foreign exchange risk
  If the investment currency is not your base currency, and you choose to convert other currency into the investment currency for the purpose of subscribing for this Structured Investment Product and/or you choose to convert the investment capital and return (if any) back to your base currency, your investment result could be affected negatively or positively due to exchange fluctuations.
  

We will provide you the following on product and trade information.

• Structured Investment Advice: Relevant advice is provided at product establishment, product withdrawal/cancellation, returns during the period, automatic redemption, product maturity, acceptance of early redemption application by investor and in other related circumstances. Structured Investment Advice is provided in Online Banking or by mail according to your request.
• Composite Statement: Composite Statement is provided in Online Banking or by mail according to the your request. The content includes the Structured Investment account information, Indicative Market Price, Indicative Market Value, Accumulated Dividends (if any) etc.
• Product Performance Report: Product Performance Report and Maturity Product Performance of the Structured Investment are regularly updated. You can log on Online Banking, or contact your Relationship Manager, or call us to request such reports.

Please contact your Relationship Manager or call our wealth management hotlines to keep updated with product performance.

We reserve the right to add, delete or modify the above information disclosure document(s) and/or related disclosure channels and manners from time to time.