Risk Factors

Investors should note that “Equity-Linked Capital Protected Investment Product – Range Accrual” (“CPI Product”) 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. Potential Investors should consider the following risks and read the other information contained in the relevant Terms and Conditions.

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 Investors 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 by 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 the 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.

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.

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.

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. If the Guaranteed Investment Amount Percentage of the CPI Product is not 100%, Investors might suffer loss to the part of the investment amount that is not guaranteed.

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. 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.

Investors should understand that the Investors will receive the Investment Amount or Guaranteed Investment Amount 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 into local currency is required, Investors should note that they may suffer a loss due to exchange rate fluctuations.

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.

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	Illustrative Examples