Structured deposits (launched by HSBC China)

1. customers whose risk profiles matches with product risk level
2. customers who are willing to tailor-make their product structure and express their own market view
3. customers who can set product parameters by themselves

This product is a structured deposit which is embedded in derivatives. It’s linked to specific underlying assets, which enables depositors to receive 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 asset, and returns from the product do not represent 100% participation in the performance of the underlying asset. You will not be entitled to any rights related to the underlying asset.

Remark:

1. Include loss scenario.
   
2. You may suffer principal loss subjective to specific payoff selected.

* The above diagram only roughly illustrates the overall mechanism of the product and is for your reference only. The agreement made between you and the bank shall prevail in terms of the return (if any) you can actually gain from investing in structured deposit and the capital protection level. 

Product risk rating:Ranges from 1 (low risk) to 5 (very high risk)

For more information on fees and charges, please refer to <Tariff of Accounts and Services for Wealth and Personal Banking Business> or our product subscription document. For more information on suitable customers of the product, please refer to our product subscription document or reach out to our Relationship Manager. 

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
  If early redemption of the product is not allowed, you are not able to withdraw all or part of the structured 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 product, 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 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 your online banking or by mail according to your request.
• Composite statement: Composite statement is provided in your online banking or by mail according to 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 to online banking, contact your Relationship Manager or call us to request such reports.

You can also contact your Relationship Manager or call our wealth management hotlines to keep updated with the 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.