Important Notes:
-
FX Linked Deposit is a structured product involving derivatives. The investment decision is yours but you should not invest in FX Linked Deposit unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
-
FX Linked Deposit is not equivalent to or an alternative of time deposits. It is not a protected deposit, and is not protected by the Deposit Protection Scheme in Hong Kong.
Have to crack open the piggy bank once and again?
As the old saying goes, a penny-saved is a penny-earned. But from now on, you should dream it bigger.
No matter you are looking forward to develop your career overseas, or planning to send your children to study aboard, either Principal Protected Deposit or High Yield Deposit can satisfy your needs on foreign currency, and offer you wealth-growing opportunity in the fluctuating foreign exchange market with a higher potential interest returns.
Important Notes:
-
FX Linked Deposit is a structured product involving derivatives. The investment decision is yours but you should not invest in FX Linked Deposit unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
-
FX Linked Deposit is not equivalent to or an alternative of time deposits. It is not a protected deposit, and is not protected by the Deposit Protection Scheme in Hong Kong.
Serve the needs on foreign currency |
Higher potential interest over ordinary time deposit |
Flexible Deposit Period |
A chance to buy foreign currency below the spot price |
Anthony Wong42yrs
Considerate father, wishes to pave the way for his children to a bright future. He and his wife have planned to support them to finish degree program in Australia
| Strategy |
Anticipate that the price of AUD will be stable in long term, opt for a low-risk investment tool.
|
Wynne Yeung30yrs
Adventurous Aries girl, determines to make a little fortune before 35. Other than stock market, she also eagers to invest in foreign exchange to diversify her risk.
| Strategy |
Foreseeing AUD will rise gradually in medium term, capture the chance to buy in the currency below the spot price.
|
Important Notes:
-
FX Linked Deposit is a structured product involving derivatives. The investment decision is yours but you should not invest in FX Linked Deposit unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
-
FX Linked Deposit is not equivalent to or an alternative of time deposits. It is not a protected deposit, and is not protected by the Deposit Protection Scheme in Hong Kong.
How does it work?
You have to choose your preferred currency pair, and preset a deposit period and a target range regarding to your needs.
Your interest return will be depended on whether the exchange rate has fluctuated outside the range.
Your interest return will be depended on whether the exchange rate has fluctuated outside the range.
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Anthony’s Outsmarting Strategy
|
|
| Deposit Currency | AUD |
| Linked Currency | HKD |
| Principal Amount | AUD 1,000,000 |
| Deposit Period | 1 month (30 days) |
| Stipulated Range (AUD/HKD) |
7.850-8.650 |
| Highest Interest Rate (per annum) | 6.25% |
| Lowest Interest Rate (per annum) | 1.5% |
Best Case Scenario
Exchange rate has been floating within the fixed range. Anthony will then have a chance to gain a higher interest return than ordinary time deposit.
Worst Case Scenario
Even the exchange rate has been wildly fluctuating beyond the fixed range, 100% capital and minimal return can be guaranteed.
Important Notes:
-
FX Linked Deposit is a structured product involving derivatives. The investment decision is yours but you should not invest in FX Linked Deposit unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
-
FX Linked Deposit is not equivalent to or an alternative of time deposits. It is not a protected deposit, and is not protected by the Deposit Protection Scheme in Hong Kong.
How does it work?
Market News
Improving external economic environment favors strong
foreign currencies against HKD. Official exchange
rate of AUD is the highest among G7 countries.
foreign currencies against HKD. Official exchange
rate of AUD is the highest among G7 countries.
Annual interest rate:
6.25% (which is normally around 3% for AUD time deposit)
Principal and interest received on Maturity Date：
AUD 1,000,000 + AUD 1,000,000 x 6.25% x 30/360
= AUD 1,005,208.33 (in Deposit Currency)
6.25% (which is normally around 3% for AUD time deposit)
Principal and interest received on Maturity Date：
AUD 1,000,000 + AUD 1,000,000 x 6.25% x 30/360
= AUD 1,005,208.33 (in Deposit Currency)
Return: AUD 5,208.33
*The above examples are for illustrations only and should not be used as an indication of historical trends or further performance.
AUD/HKD exchange rate remains steady
Movement of AUD/HKD exchange rate:
Within 7.850 – 8.650
Movement of AUD/HKD exchange rate:
Within 7.850 – 8.650
Market News
Due to the global stock market crash, capital flows
to US dollars for risk aversion, which will push up
the US dollar index.
to US dollars for risk aversion, which will push up
the US dollar index.
Annual interest rate:
1.5% (which is normally around 3% for AUD time deposit)
Principal and interest received on Maturity Date:
AUD 1,000,000 + AUD 1,000,000 x 1.5% x 30/360
= AUD 1,001,250 (in Deposit Currency)
1.5% (which is normally around 3% for AUD time deposit)
Principal and interest received on Maturity Date:
AUD 1,000,000 + AUD 1,000,000 x 1.5% x 30/360
= AUD 1,001,250 (in Deposit Currency)
Return: AUD 1,250
*The above examples are for illustrations only and should not be used as an indication of historical trends or further performance.
AUD/HKD exchange rate experienced
wild fluctuationthroughout the deposit period.
Movement of AUD/HKD exchange rate：
At or outside 7.850 – 8.650
wild fluctuationthroughout the deposit period.
Movement of AUD/HKD exchange rate：
At or outside 7.850 – 8.650
Important Notes:
-
FX Linked Deposit is a structured product involving derivatives. The investment decision is yours but you should not invest in FX Linked Deposit unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
-
FX Linked Deposit is not equivalent to or an alternative of time deposits. It is not a protected deposit, and is not protected by the Deposit Protection Scheme in Hong Kong.
How does it work?
You have to preset a conversion rate on your deposit.
On the fixing date, this will be compared with the relevant market rate, which will determine
whether the principal and interest will be repaid in the deposit currency or the linked currency.
On the fixing date, this will be compared with the relevant market rate, which will determine
whether the principal and interest will be repaid in the deposit currency or the linked currency.
|
Wynne’s Outsmarting Strategy
|
|
| Deposit Currency | AUD |
| Linked Currency | HKD |
| Principal Amount | HKD300,000 |
| Deposit Period | 1 month (30 days) |
| Initial exchange rate | 8.3538 |
| High Interest Rate (per annum) | 10% p.a. |
Best Case Scenario
The linked currency has been obviously strengthened against the deposit currency. Wynne can get back the principal with high interest return.
Average Case Scenario
The linked currency has slightly weakened against the deposit currency, but Wynne can still earn a higher interest return compared with ordinary time deposit.
Worst Case Scenario
The linked currency has sharply depreciated against the deposit currency, principal and interest will be paid in the linked currency, which may incur a loss to Wynne.
Important Notes:
-
FX Linked Deposit is a structured product involving derivatives. The investment decision is yours but you should not invest in FX Linked Deposit unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
-
FX Linked Deposit is not equivalent to or an alternative of time deposits. It is not a protected deposit, and is not protected by the Deposit Protection Scheme in Hong Kong.
How does it work?
Market News
After Australian government announced that the
latest retail sales volume has increased rapidly,
there is an expectation of a rebound in economic activities.
latest retail sales volume has increased rapidly,
there is an expectation of a rebound in economic activities.
Exchange rate on Fixing Date: 9.189
Principal and interest received on Maturity Date:
HKD 300,000 + HKD 300,000 x 10% x 30/360
= HKD 302,500 (in Deposit Currency)
Principal and interest received on Maturity Date:
HKD 300,000 + HKD 300,000 x 10% x 30/360
= HKD 302,500 (in Deposit Currency)
Return: HKD 2,500
*The above examples are for illustrations only and should not be used as an indication of historical trends or further performance.
AUD
strengthens / remains constant
against HKD on the Fixing Date
strengthens / remains constant
against HKD on the Fixing Date
Market News
Market is waiting for further development of Eurozone
debt crisis. AUD/USD exchange rate remains steady.
debt crisis. AUD/USD exchange rate remains steady.
Exchange rate on Fixing Date: 8.312
Principal and interest received on Maturity Date:
HKD 302,500 / 8.3538 = AUD 36,211.07
(in Linked Currency)
Convert to HKD with the exchange rate on Fixing Date:
AUD 36,211.07 x 8.312 = HKD 300,986.37
Principal and interest received on Maturity Date:
HKD 302,500 / 8.3538 = AUD 36,211.07
(in Linked Currency)
Convert to HKD with the exchange rate on Fixing Date:
AUD 36,211.07 x 8.312 = HKD 300,986.37
Return: HKD 986.37
*The above examples are for illustrations only and should not be used as an indication of historical trends or further performance.
AUD
weakens slightly
against HKD on the Fixing Date
weakens slightly
against HKD on the Fixing Date
Market News
Spiking unemployment rate in Australia
leads to a pessimistic economic outlook
leads to a pessimistic economic outlook
Exchange rate on Fixing Date: 6.265
Principal and interest received on Maturity Date:
HKD 302,500/8.3538 = AUD 36,211.07
(in Linked Currency)
Convert to HKD with the exchange rate on Fixing Date:
AUD 36,211.07 x 6.265 = HKD 226,856.89
Principal and interest received on Maturity Date:
HKD 302,500/8.3538 = AUD 36,211.07
(in Linked Currency)
Convert to HKD with the exchange rate on Fixing Date:
AUD 36,211.07 x 6.265 = HKD 226,856.89
Loss: HKD 73,143.11
*The above examples are for illustrations only and should not be used as an indication of historical trends or further performance.
AUD
weakens significantly
against HKD on the Fixing Date
weakens significantly
against HKD on the Fixing Date
Important Notes:
-
FX Linked Deposit is a structured product involving derivatives. The investment decision is yours but you should not invest in FX Linked Deposit unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
-
FX Linked Deposit is not equivalent to or an alternative of time deposits. It is not a protected deposit, and is not protected by the Deposit Protection Scheme in Hong Kong.
leads you to explore every investment opportunity under a continuous low interest rate environment.
You can set up your brilliant investment strategy according to your needs and risk tolerance,
in order to earn a higher potential interest return, and open the door to a prosperous future.
You can set up your brilliant investment strategy according to your needs and risk tolerance,
in order to earn a higher potential interest return, and open the door to a prosperous future.
Contact us now to seize the wealth-growing opportunities!
Important Notes:
-
FX Linked Deposit is a structured product involving derivatives. The investment decision is yours but you should not invest in FX Linked Deposit unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
-
FX Linked Deposit is not equivalent to or an alternative of time deposits. It is not a protected deposit, and is not protected by the Deposit Protection Scheme in Hong Kong.
| Deposit Currency | |
| Linked Currency | |
| Principal Amount | USD |
| Tenor | |
| Ceiling Rate | |
| Floor Rate | |
| Interest Rate (trade within ceiling rate and floor rate) |
%p.a. |
| Interest Rate (trade at or outside ceiling rate and floor rate) |
%p.a. |
| Calculate | |
* Deposit amount must be greater or equal to USD 100,000
* Please use numbers only, do not use commas or any symbols.
* The above exchange rate, interest rate and return/loss are for reference only. The actual investment environment and circumstances may be different.
* Please use numbers only, do not use commas or any symbols.
* The above exchange rate, interest rate and return/loss are for reference only. The actual investment environment and circumstances may be different.
Scenario 1
If spot rate within the specific tenor has always been traded inside 76.5 and 81.10,the pincipal amount with interest at 5% p.a. would be credited to settlement account on maturity date.
Redemption amount upon maturity: USD USD 1,004,166.67
Return: USD 4,166.67
Scenario 2
If spot rate within the specific tenor has been not traded inside 76.5 and 81.10,the pincipal amount with interest at 0.2% p.a. would be credited to settlement account on maturity date.
Redemption amount upon maturity: USD 1,000,166.67
Return: USD 166.67
| Deposit Currency | |
| Selected Currency Pair | |
| Principal Amount | USD |
| Initial Exchange Rate | |
| Tenor | |
| Interest Rate | %p.a. |
| Calculate | |
* Deposit amount must be greater or equal to USD 10,000
* Please use numbers only, do not use commas or any symbols.
* The above exchange rate, interest rate and return/loss are for reference only. The actual investment environment and circumstances may be different.
* Please use numbers only, do not use commas or any symbols.
* The above exchange rate, interest rate and return/loss are for reference only. The actual investment environment and circumstances may be different.
Scenario 1
Linked Currency strengthened / remained unchanged
Currency Pair Fixing FX Rate: USD JPY FIXED AT79.80
Redemption amount upon maturity: USD 100,233.33
Return: USD 233.33
Scenario 2
Linked Currency weakened
Currency Pair Fixing FX Rate: USD JPY FIXED AT81.10
Redemption amount upon maturity: JPY 8,068,783
Loss: USD 508.22
The above product is bound by the related terms and conditions. Please contact our staff for details.
Risk Disclosure
Investment involves risks. The prices of investment products fluctuate, sometimes dramatically, and may become valueless. Before making any investment decisions, customers are encouraged to consult their own independent financial advisors and read the relevant offering documents for further details including the risk factors in order to ensure that they fully understand the risks associated with the investment products.
The return on FX Linked Deposit is limited to the nominal interest payable, which will be dependent, to at least some extent, on movements in some specified currency exchange rates. Whilst the possible return may be higher than conventional time deposits, it is normally associated with higher risks. When the fluctuation of the currency exchange rates differs from what the customer expects, the customer may have to bear the consequential losses. The relative losses may reduce the return and the principal amount of the FX Linked Deposit which the customer may get back. Currency exchange rates are affected by a wide range of factors, including national and international financial and economic conditions and political and natural events. The effects of normal market forces may at times be countered by intervention by central banks and other bodies. At times, exchange rates, and prices linked to such rates, may rise or fall rapidly.
Disclaimer
This webpage does not constitute advice to buy or sell, or an offer with respect to any investment products. Any offer, invitation or recommendation to any customers to enter into any investment transaction does not constitute any prediction of likely future movements in prices of any investment products. This webpage is issued by China Construction Bank (Asia) Corporation Limited, and has not been reviewed by the Securities and Futures Commission or any other regulatory authorities in Hong Kong.