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 Risk Factors |
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This Investment Product involves the investment risk. You will only receive returns expressly provided in the relevant Term Sheet and the relevant Terms and Conditions and Annex. You should fully understand and be aware of the investment risks, and invest with caution.
Investors should note that all investments including investment in capital protected investment products involve risk. Investors will only receive returns expressly provided in the relevant Term Sheet and the relevant Terms and Conditions and Annex. Investors should fully understand and be aware of the investment risks, and invest with caution.
Investors should note that the CPI Product is different from normal time deposit and thus should not be treated as a usual time deposit or a substitute so that the CPI Product may not be protected by the Saving Administration Regulation of People's Republic of China. Earnings on this CPI Product are limited to the Investment Return payable (if any). There is an inherent risk that only the Guaranteed Investment Amount shall be payable to investors on the Maturity Date or Early Maturity Date (as the case may be) if market conditions operate against the view taken by the investors. If investors intend to terminate the CPI Product before the Maturity Date or the Early Maturity Date (as the case may be), investors will not gain any Return and have to bear all costs involved and losses suffered by the Bank. Therefore, the amount payable to the investors will be less than the amount initially invested by investors for the CPI Product. Even the total investment amount might be lost. Investors will also be liable for any taxes (if any) that may arise from investing in the CPI Product. Potential investors should seek professional advice before investing in the CPI Product if necessary. Potential investors should consider the following risks and read the other information contained in the Agreement:
Investors are not allowed to early terminate the CPI Product and the capital of the investors will be invested in the CPI Product for the entire investment period. The Bank may at its absolute discretion refuse to give consent to any early termination request made by investors. Furthermore, the Bank may early terminate the CPI Product in its sole and absolute discretion, in which case the Bank may at its sole and absolute discretion determine the amount to be paid to investor at early termination and the investors' interest may be adversely affected. If the Bank at its sole discretion decides to allow investors to early terminate the CPI Product with written consent, the Bank shall be entitled to deduct from the Investment Amount and/or any other amount payable to the investors in respect of the CPI Product (as the case may be), any expenses, costs or damages incurred the Bank. Damages may include any costs, expenses, liability or losses incurred or suffered by the Bank as a result of the early termination of the CPI Product by the investors. Therefore, upon occurrence of an early termination, the CPI Product will not be capital protected, there is no guarantee that investors will be able to receive the Investment Amount or the Guaranteed Investment Amount and the amount payable to the investors at early termination may be less than the Investment Amount initially invested or the investors may lose all of the Investment Amount.
| Risk associated with initial price fluctuations |
The Initial Stock Price, the Accrual Return Trigger Stock Price (if applicable), the Participation Rate (if applicable), the Maximum Investment Return Rate (if applicable) and the Early Maturity Trigger Stock Price will be notified to the relevant Customer, but the relevant Customer would have committed to invest in the relevant CPI Product during the applicable Offer Period and prior to the Start Date.
As CPI Product has its pre-determined investment period, investors should consider their need to maintain sufficient liquid assets during the relevant investment period (especially for products with relatively long investment periods) and satisfy themselves that the CPI Product is suitable for them in view of their own circumstances and financial position before making any investment decision.
Investors should avoid excessive investment in any particular type of investment or geographical or industry focus, so as to avoid the investment portfolio being over-exposed to any particular investment risk.
| Risks associated with Returns of CPI Product |
In order to provide capital protection, the investment strategy adopted for CPI Product may lead to a dilution of performance when compared to non-capital protected products investing in similar markets. Investors should be prepared to take the risks of earning a lower return on the capital invested and losing the interest that might otherwise be earned on money invested by way of deposits.
| Risks associated with receiving Guaranteed Investment Amount at Maturity or Early Maturity (as the case may be) |
Investors should understand that the Investment Amount of the CPI Product is capital-protected only when it is held to Maturity or Early Maturity (as the case may be) (see heading “Early Termination Risks” above) and there is no guarantee of any periodic income payable to investors prior to maturity.
| Market Risks associated with Investment Return |
There is no guarantee of any Investment Return. Return is payable only if the investment is held to Maturity or Early Maturity (as the case may be). Returns of CPI Product depend on the market conditions at the time of the relevant determination. Returns on equity-linked products are dependent on the prices of transactions on the linked equity in the Exchanges. Investors should be fully aware of the risks relating to fluctuations in the linked equity. Factors affecting the performance of stock prices are numerous, including but are not limited to political factor (changes of international situation, outbreak of war, momentous political affairs, important national policies such as industrial policies, tax policies and currency policies), industry properties in which the equity-issuing companies and business performance of the single company. If the market moves against the view taken by investors, there is an inherent risk that the total returns payable to investors at maturity will be less than that would have been payable on a time deposit for the same tenor or that no Investment Return will be payable for the whole investment period of the CPI Product.
| Risks associated with receiving the Investment Return at Maturity or Early Maturity (as the case may be) |
Investors should understand that the investors will have the chance to receive the Investment Return (if any) on the Investment Return Payment Date or the Maturity Date or Early Maturity Date (as the case may be) only if the CPI Product is held to Maturity or Early Maturity (as the case may be) (see the heading "Early Termination Risks" above).
If the Base Currency used for investment is not the local currency customarily used by investors and thus conversion between Base Currency and local currency is required, investors should note that they may suffer a loss due to exchange rate fluctuations.
| Risks associated with adjustment/amendment |
The determination date of Initial Stock Price, Final Stock Price and Closing Stock Price, the Early Maturity Date and/or Maturity Date etc. are subject to adjustment or amendment by the Bank. Such adjustment/amendment may adversely affect the returns of the CPI Product. Investors must read the Terms and Conditions (especially Clause 6 and Clause 2 and 3 of the relevant Annex) to ensure they understand and accept the Terms and Conditions.
| Risks associated with investors' own circumstances |
Investors should evaluate their own circumstances, including their financial status, investment experience, professional knowledge, education level, risk appetite, risk-taking ability, etc. before investing in the CPI Product. Due to the different circumstances of each investor, the risk of investing in the CPI Product may increase substantially or different from other investors. Investors should fully understand and consider this risk.
| Risks associated with unsuccessful subscriptions of CPI Product |
The Bank reserves the absolute right to approve any application and to decline any application received (whether in whole or any part thereof) before the CPI Product Start Date. In the event of non-acceptance, a notification will be sent by the Bank and any subscription funds received will be returned to the relevant investors after the CPI Product Start Date or other practicable circumstances as soon as possible.
Note: Once all the CPI products are subscribed, they shall not be cancelled. This document shall not be treated as an offer issued by the bank targeting at any potential clients with regard to the CPI products. The document shall not be used as an agreement between the bank and potential clients regarding the CPI products, therefore it does not have any legal force upon both parties. Any potential clients who incline to invest in these CPI products of the bank shall sign the relevant agreement with the bank separately.
Client complaint and suggestion hotline: 8008 30 8008, for mobile (8620) 8396 9669, Office time: Monday to Saturday 08:00 – 19:00.
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