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 Risk Factors |
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This Investment Product involves the investment risk. Investments Amount may
be subject to a substantial lose due to market fluctuation. You should
fully understand and be aware of the investment risks, and invest with
caution.
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 the PARTIALLY 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 PARTIALLY CPI
Product may not be protected by the Saving Administration Regulation
of People’s Republic of China. Earnings on this PARTIALLY 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 PARTIALLY
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 PARTIALLY 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 PARTIALLY CPI Product. Potential investors
should seek professional advice before investing in the PARTIALLY
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 PARTIALLY CPI Product and the
capital of the investors will be invested in the PARTIALLY 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 PARTIALLY 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 PARTIALLY 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 PARTIALLY 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 PARTIALLY CPI Product
by the investors. Therefore, upon occurrence of an early termination, the PARTIALLY
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 PARTIALLY CPI Product during the applicable Offer Period and
prior to the Start Date.
As PARTIALLY 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 PARTIALLY 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 PARTIALLY CPI Product |
In order to provide capital protection, the investment strategy adopted for PARTIALLY
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 PARTIALLY 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.
Partially CPI Product is not a 100% capital protective investment, and investor
may be subject to lose the portion of capital which is not guaranteed. The 100%
investment amount may be redeemed if held to early maturity (early maturity event
triggered); and the redemption amount on maturity will be subject to a minimum
of guaranteed portion of investment amount and a maximum of 100% investment amount.
| 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 PARTIALLY 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 PARTIALLY 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 PARTIALLY
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 PARTIALLY 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 PARTIALLY CPI Product.
Due to the different circumstances of each investor, the risk of investing in
the PARTIALLY CPI Product may increase substantially or different from other
investors. Investors should fully understand and consider this risk.
| Risks associated with unsuccessful subscriptions of PARTIALLY CPI Product |
The Terms and Conditions and /or the Term Sheet and/or the Annex 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 to ensure they understand and accept the Terms and Conditions.
Note: Once all the PARTIALLY 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 PARTIALLY CPI products. The document
shall not be used as an agreement between the bank and potential clients regarding
the PARTIALLY CPI products, therefore it does not have any legal force upon both
parties. Any potential clients who incline to invest in these PARTIALLY CPI products
of the bank shall sign the relevant agreement with the bank separately.
| Client complaint and suggestion hotline: |
8008 30 8008, |
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for mobile (8620) 8396 9669, |
| Office time: |
Monday to Saturday 08:00 – 19:00. |
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