FX Linked Deposit - Principal Protected Deposit
Enjoy Higher Potential Interest Return With 100% Principal Protection
! Please read the Important Notes for FX Linked Deposit - Principal Protected Deposit.
AUD / HKD moves along with expectation
(Trades at or above 5.2017)
100% Principal
HK$100,000
Interest Return in
High Interest Rate (3.95% p.a.) Approximately HK$1,028
AUD / HKD does not move along with expectation
(Trades below 5.2017)
100% Principal
HK$100,000
Interest Return in
Low Interest Rate (3.85% p.a.) Approximately HK$1,002
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Enquiry Hotline: 2903 8343
Remarks:
- The principal protection rate for Swap Deposit will depend on whether Currency Event Designation by the bank has occurred during the deposit period. Currency Event refers to the occurrence of any event or existence of any condition (including but not limited to the imposition of exchange controls or monetary measures by a government, with little or no warning) such that the convertibility or transferability of the Deposit Currency and the Linked Currency becomes impossible, illegal or impracticable.
- Low interest return could be zero for certain Principal Protected Deposit. Please refer to the relevant Term Sheet for details.
- 10 currencies include USD, CNH, HKD, AUD, CAD, CHF, EUR, GBP, JPY and NZD.
- Principal Protected Deposit is available for subscription from 10:00 am – 4:15 pm on every business day in Hong Kong (subject to the Bank’s discretion, market disruption events, etc. And the product will not be available during the period of severe weather.)
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Risk Disclosure of FX Linked Deposit - Principal Protected Deposit (“PPD”)
- Investment involves risks. The prices of investment products fluctuate, sometimes dramatically, and may become valueless. Investors should not invest based on this web page alone. Before making any investment decisions, customers must 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.
- PPD is different from an ordinary time deposit and is not the same as directly buying the relevant currencies. It also involves derivatives risk. Although it is principal protected, it is subject to the credit risk of the Bank and is not collateralized. There is no secondary market for PPD, and early withdrawal is not allowed. You should also pay attention to the relevant market risk and the risk of early termination by the Bank upon occurrence of certain events. Besides, whether or not you will receive the high interest, if the Deposit Currency is not in your home currency, you may suffer a loss due to the currency risk originated by the Deposit Currency’s exchange rate fluctuations, which may offset or even exceed any potential gain. PPD is not covered by the Investor Compensation Fund. The potential return is limited, and the principal amount and the interest will be paid in the Deposit Currency.
- (Only applicable to Swap Deposit) If Currency Event Designation by the Bank (i.e. occurrence of any event or existence of any condition, such as the imposition of exchange controls or monetary measures, such that the convertibility or transferability of the Deposit Currency and the Linked Currency becomes impossible, illegal or impracticable) occurs, the Bank has the right to early terminate the Swap Deposit and will pay the Mandatory Redemption Amount in the Deposit Currency (instead of the Repayment Amount) only to the customer on the Mandatory Redemption Date. The Mandatory Redemption Amount may be substantially less than the Principal Amount and in the worst case, is zero.
- RMB currency risk - RMB is currently not freely convertible and is subject to exchange controls and restrictions (which are subject to changes from time to time without notice). You should consider and understand the possible impact on your liquidity of RMB funds in advance. The fluctuation in the exchange rate of RMB may result in losses in the event that you convert RMB into other currencies. Onshore RMB and offshore RMB are traded in different and separate markets operating under different regulations and independent liquidity pool with different exchange rates. Their exchange rate movements may deviate significantly from each other.
- Credit and insolvency risk of the Bank - The Bank is acting as the principal of this investment product. This product is not collateralized. When you invest in this product, you will be relying on the Bank’s creditworthiness. If the Bank becomes insolvent or defaults on its obligations under this product, you can only claim as an unsecured creditor of the Bank. In the worst case, you could suffer a total loss of your principal amount.
- Deposits cannot generally be cancelled or withdrawn prior to the agreed maturity date without the consent of the Bank unless the terms of a Deposit expressly provide for it. If the Bank does consent to an early withdrawal, it will be a condition of such consent that the amount of any cost or loss suffered by the Bank by reason of early withdrawal is deducted from the Deposit. Such costs and losses may include the cost of unwinding a hedging position taken by the Bank to cover the Deposit, and may result in a lower rate of return than might be expected, or even a negative rate of return.
- PPD is a structured product involving derivatives and you should exercise caution in relation to this product. The investment decision is yours but you should not invest in PPD unless the intermediary who sells it to you has explained to you that PPD is suitable for you having regard to your financial situation, investment experience and investment objectives.
- The Bank will decide whether to issue PPD based on the investment pooling condition.
Disclaimer
This webpage does not constitute advice to buy or sell, or an offer with respect to any investment products. This webpage and the Principal Protected Deposit abovementioned are issued by China Construction Bank (Asia) Corporation Limited, which is a licensed bank regulated by the Hong Kong Monetary Authority. This web page has not been reviewed by any regulatory authorities in Hong Kong and investors are advised to exercise caution in relation to the offer.