Risk Factors

This investment regime is not a saving deposit with the Bank and involves high risks. Your investment funds may suffer a significant loss due to market fluctuations. You should be fully aware of the risks and invest cautiously.

Investors should note that all investments including investment in this Investment Deposit involve risks. The investors’ principal and returns (the nominal Interest and the Option Premium only) may both suffer significant losses due to the market fluctuations and/or foreign exchange risks. Investors should fully understand and be completely aware of the investment risks, and invest with caution.
Investors should note that “MaxiInterest” Investment Deposit (“Investment Deposit”) is different from usual time deposit and thus should not be treated as a normal time deposit or a substitute. Earnings on this Investment Deposit are limited to the nominal interests accrued on the Investment Deposit and the Option Premium. However, as the Investment Amount and the earnings thereon will be paid to the investor in the Deposit Currency or the Linked Currency, whichever has depreciated against the other, upon the maturity, the investor will have to bear the potential losses due to depreciation which may be substantial and possibly set-off the earnings of the Investment Deposit, or even lead to significant losses in the principal. The Investment Deposit cannot be terminated prior to the Maturity Date. If the Bank in its sole discretion decides to allow investors to early terminate the Investment Deposit, the Bank shall be entitled to attach such terms and conditions as the Bank may deem appropriate for its approval of such early termination request. In this case, the 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 Investment Deposit. Investors will also be liable for any taxes (if any) that may arise from investing in the Investment Deposit. Before making any investment decision potential investors should read carefully the Agreement and this risk disclosure statement and fully be aware of and understand the risks involved in the product to subscribe and be willing to bear such risks. Potential investors should consider their own circumstances before making any decision and seek professional advice before investing in the Investment Deposit if necessary.

Liquidity Risks

As Investment Deposit has its pre-determined investment period, and in such pre-determined investment period the investors shall not early terminate the Investment Deposit. Hence the investors should consider their need to maintain sufficient liquid assets during the relevant investment period (especially for Investment Deposits with relatively long Deposit Periods) and satisfy themselves that the Investment Deposit is suitable for them in view of their own circumstances and financial position before making any investment decision.

Concentration Risks

Investors should avoid concentrating their investments in any particular type of investment(s) or geographical or industry focus, so as to avoid the investment portfolio being over-exposed to any particular investment risk.

Risks Associated with Loss of Principal

Investors should be aware this Investment Deposit is not capital protected, thus investors will not obtain any guarantee that he can receive the principal initially placed for the Investment Deposit upon maturity. If the movement of the exchange rate is different from the view taken by the investors, investors may suffer a loss in the principal.

Market Risks Associated with Redemption Amount

There is no guarantee of any potential return. Return is payable only if the investment is held to maturity. Upon maturity investors will receive the principal, nominal Interest and Option Premium of the Investment Deposit (together, “Redemption Amount”) on the condition that upon maturity, the Bank will compare the prevailing exchange rate with the Initial Exchange Rate to determine the currency in which the Redemption Amount will be paid to investors. If the Linked Currency has depreciated against the Deposit Currency upon maturity, the Redemption Amount will be converted into the Linked Currency at the Initial Exchange Rate and paid to investors in the Linked Currency. Therefore, investors should bear the potential loss due to depreciation. Such loss may be substantial and may offset the Interest and Option Premium earned on the Investment Deposit and may even result in losses in the principal amount of the Deposit. Investors should be fully aware of the risks relating to fluctuations in the linked exchange rates. Factors affecting the performance of foreign exchange markets are numerous, including but are not limited to changes in global and local investment sentiments, interest rate policies, fund flows, political environment, economic environment, business and social conditions in the local marketplace. If the market moves against the views taken by investor, 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 even that the investors may suffer big losses.

Foreign Exchange Risks

If the Deposit Currency used for investment is not the currency customarily used by investors and thus currency conversion is required, investors should note that they may suffer a loss due to exchange rate fluctuations. For example, in respect of any investment product denominated in other currency not customarily used by the investors, which means the investment amount and any returns of the product will be made in such non-customarily-used currency, if the investors choose to convert its commonly used currency into such other currency or agree to the bank to do so on its behalf, upon maturity the investors have to convert the redemption amount denominated and calculated in other currency again back into its customarily used currency or agree to the bank to make such conversion, causing this investment product exposed to foreign exchange risks and the investors’ investment amount and returns (if any) may suffer a loss due to the exchange rate fluctuations.

Early Termination Risks

Investors cannot early terminate the Investment Deposit and the capital of the investors will be invested in the Investment Deposit for the entire investment period. The Bank may at its absolute discretion refuse to give consent to any early termination request. If the Bank in its sole discretion decides to allow investors to early terminate the Investment Deposit with written consent, the Bank shall be entitled to deduct from the Investment Amount of the relevant Investment Deposit and/or any other amount (if any), which may have accrued to investors, any expenses, costs or damages incurred by the Bank. Damages may include any costs, expenses, liability or losses to the Bank as a result of the early termination by the investors. Therefore, there is no guarantee that investors will be able to receive the Investment Amount at early termination 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. Furthermore, the Bank may early terminate the Investment Deposit in its sole and absolute discretion in case of abnormal market conditions or illegality event or any disruption in the hedging transactions of the Bank according to the Agreement, in which case the investors' interest may be adversely affected.

Risks Associated with Unsuccessful Subscription of Investment Deposit

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 Start Date of the Investment Deposit. 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 Start Date or as soon as possible under other practicable circumstances.

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 Investment Deposit. Due to the different circumstances of each investor, its risk of investing in the Investment Deposit may increase substantially or be different from other investors. Investors should fully understand and consider this type of risk.

Credit Risk

During the Investment Period, the investors will be relying on the creditworthiness of the Bank, the Bank’s counterparty bank and other relevant financial service organizations. If these organizations become insolvent or default on their obligations, the investors may not obtain anticipated proceeds or even suffer loss of Investment Amount.
This Investment Deposit is operated by Hang Seng Bank (China) Limited, and subject to the applicable Hang Seng Bank MaxiInterest Investment Deposit Terms and Conditions (available upon request) and the specific terms in the MaxiInterest Investment Deposit Application Form submitted by you and accepted by the bank.

Product Features

Illustrative Examples