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Currency Linked Capital Protected Investment Deposit (CPI)

  • Structured Investment Deposit is a structured investment product involving derivatives. The investment decision is yours but you should not invest in Structured Investment 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.
  • This is a structured investment product, which is NOT protected by the Deposit Protection Scheme in Hong Kong.
  • Additional risks are disclosed in the section of "Risk disclosure" below. Please refer to it for details.Please also refer to the offering documents for further details including risk factors.

Features and benefits of Capital Protected Investment Deposit - Currency Linked III:

  • 100% protection of your capital at maturity*

  • Higher interest return at maturity according to your bullish or bearish view on the selected currency

  • Offer a wide range of tradable currencies and flexible deposit tenors as short as 3 months

Snapshot of Capital Protected Investment Deposit - Currency Linked III interest rate (p.a.):

Deposit Currency Tenor Potential Interest Rate
 (p.a.) As of 21/10/2021
CAD
3 months

0.70%

CNY
3 months

2.93%

Snapshot of Capital Protected Investment Deposit - Currency Linked III interest rate (p.a.):

Deposit Currency CAD
Tenor 3 months
Potential Interest Rate
 (p.a.) As of 21/10/2021

0.70%

Deposit Currency CNY
Tenor 3 months
Potential Interest Rate
 (p.a.) As of 21/10/2021

2.93%

The contents of this webpage do not represent recommendations from HSBC. Customers should not base their investment decisions solely on the information herein. Please call (852) 2233 3733  or visit any HSBC branch in Hong Kong for more details on Capital Protected Investment Deposit.

How do I get started?

3 simple steps to place your Capital Protected Investment Deposit - Currency Linked III:

 

Step 1: Click "Investment" and then "Structured Investment Deposit" in your HSBC Internet Banking

 

Step 2: Search for preferred deposit currency and tenor

 

Step 3: Select your desired product to place order

Please visit our branches or call (852) 2233 3733 for more details

*This product is designed to return your original capital at maturity, however, if the Bank becomes insolvent or default on its obligations under this product, you could suffer a total loss of your deposit amount, please refer to "Credit risk of the Bank" in the offering document of Capital Protected Investment Deposit for details.

The above interest rates are indicative only and are the potential maximum interest rates. The interest rate will only be applied if the Deposit Currency moves along with the customer's bearish/bullish view. They are not guaranteed and are subject to revision as per prevailing market conditions.

This document does not constitute an offer for the purchase or sale of any investment products. You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial resources and circumstances.

Risk disclosure

  • Not a time deposit - Currency Linked III is NOT equivalent to, nor should it be treated as a substitute for, time deposit. It is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.
  • Derivatives risk - Currency Linked III is embedded with FX option(s). Option transactions involve risks. If the exchange rate of the currency pair performs against expectation at the fixing time on the fixing date, you can only earn the minimum payout of the structure.
  • Limited potential gain - The maximum potential gain is limited to higher payout on the deposit less the principal amount, when exchange rate of currency pair at fixing moves in line with your anticipated direction.
  • Not the same as buying the linked currency - Investing in Currency Linked III is not the same as buying the linked currency directly.
  • Market risk - The return of Currency Linked III will depend upon the exchange rates of currency pair against trigger rate at the fixing time on the fixing date. Movements in exchange rates can be unpredictable, sudden and drastic, and affected by complex political and economic factors. You must be prepared to take the risk of earning the lower payout/no return (if exchange rate performs against expectation) on the money invested.
  • Liquidity risk - Currency Linked III is designed to be held until maturity. You do not have a right to request early termination of this product before maturity. Under special circumstances, the Bank has the right to accept your early redemption request at its sole discretion and on a case by case basis. The Bank will provide an indication of the redemption price upon such request. Your return upon such early redemption will likely be lower than that if the deposit were held until maturity and may be negative.
  • Credit risk of the Bank - Currency Linked III is not secured by any collateral. 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 deposit amount.
  • Currency risk - If the deposit currency is not your home currency, and you choose to convert it back to your home currency upon maturity, you may make a gain or loss due to exchange rate fluctuations.
  • Risk of early termination by the Bank - The Bank shall have the discretion to uplift a Deposit or any part thereof prior to the Maturity Date (subject to the deduction of such break costs or the addition of such proportion of the return or redemption amount, which may result in a figure less than the original principal amount of the Deposit) if it determines, in its sole discretion, that this is necessary or appropriate to protect any right of the Bank to combine accounts or set-off, or any security interest, or to protect the Customer's interests.
  • Risks relating to RMB - You should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government's control (for example, the PRC government regulates conversion between RMB and foreign currencies), which may adversely affect your return under this product when you convert RMB into your home currency. The value of your RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your RMB deposit to other currencies at an exchange rate that is less favourable than that in which you made your original conversion to RMB, you may suffer loss in principal. This product (if denominated in RMB) will be denominated and settled in RMB deliverable in Hong Kong, which is different from that of RMB deliverable in Mainland China.

Important Information

Please note that Structured Investment Deposit is not available for persons who are US citizen / with US nationality, are US resident or US tax payer, or have a US address (e.g. primary mailing, residence or business address in the US).