Initial Public Offerings (IPOs)

¹ Promotional period is from 1 Januaray to 31 December 2023. The offer does not include the 1% brokerage fee,

² Related charges of the above local securities services will also apply, where applicable.

³ Handling fees include subscription handling fee, safe custodian fee, interest collection fee, maturity redemption fee, Transfer-in fee from other Banks/ Brokerage firms, and Transfer fee between Central Moneymarkets Units (CMU) and Central Clearing and Settlement System (CCASS).

Bonds and Certificates of Deposit ("CDs") Risk Disclosure

• There are risks involved in buying bonds/CDs. Before applying for any of bonds/CDs, you should consider whether bonds/CDs is suitable for you in light of your own financial circumstances and objectives. If you are in any doubt, get independent professional advice.
• Bonds/CDs are mainly medium to long term fixed income products, not for short term speculation. You should be prepared to hold your funds in bonds/CDs for the full tenor; you could lose part or all of your principal if you choose to sell your bonds/CDs prior to maturity.
• It is the issuer to pay interest and repay principal of bonds/CDs. If the issuer defaults, the holder of bonds/CDs may not be able to receive back the interest and principal. The holder of bonds/CDs bears the credit risk of the issuer and has no recourse to HSBC unless HSBC is the issuer itself.
• Indicative price of bonds/CDs are available and the bonds/CDs' prices do fluctuate when market changes. Factors affecting market price of bonds/CDs include, and are not limited to, fluctuations in interest rates, credit spreads, and liquidity premiums. The fluctuation in yield generally has a greater effect on prices of longer tenor bonds/CDs. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling bonds/CDs.
• If you wish to sell bonds/CDs, HSBC may repurchase them based on the prevailing market price under normal market circumstances, but the selling price may differ from the original buying price due to changes in market conditions.
• There may be exchange rate risks if you choose to convert payments made on the bond/CDs to your home currency.
• The secondary market for bonds/CDs may not provide significant liquidity or may trade at prices based on the prevailing market conditions and may not be in line with the expectations of bonds/CDs' holders.
• If bonds/CDs are early redeemed, you may not be able to enjoy the same rates of return when you use the funds to purchase other products.
• Do not purchase the bonds/CDs unless you fully understand and are willing to assume the risks associated with it.

Additional risk disclosure to High yield bonds

• High yield bonds are typically rated below investment grade by a credit rating agency, or unrated. Whilst high yield bonds bear a higher yield opportunity than investment grade bonds, they present greater risks of issuer default, liquidity, volatility and non-payment of principal and interest.
• The risk of default on principal and / or interest, is greater for high yield bonds due to higher credit risk of the issuer and lower priority of claim by the bond holders in case of issuer default.
• High yield bonds can sometimes be less liquid than investment-grade bonds, depending on the issuer and the market conditions at any given time. Investors may be difficult to sell the high yield bond before maturity or at prices in line with their expectation compare to listed bond.
• High yield bonds tend to be more vulnerable to economic cycles and changes in the issue's financial conditions or business developments. In particular, during economic downturn, such bonds typically fall more in value than investment-grade bonds as the issuer default risk rises and investors become more risk adverse.
• Please be aware the concentration risk of investing in bonds issued by the same issuer or companies by the same group. A degrading of any of the group company's credit rating may expose the whole group to contagion risk.  Please be also aware the risk of over concentrating investment in the high risk investment products.

Renminbi related products Risk Disclosure

• There may be exchange rate risks if you choose to convert RMB payments made on the bonds/CDs to your home currency.
• RMB debt instruments are subject to interest rate fluctuations, which may adversely affect the return and performance of the RMB products.
• RMB products may suffer significant losses in liquidating the underlying investments if such investments do not have an active secondary market and their prices have large bid/ offer spreads.
• You could lose part or all of your principal if you choose to sell your RMB bonds/CDs prior to maturity.