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Capital Protected Investment - Currency Linked III (CPI III)

Take advantage of the FX exchange market without risking your initial deposit

  • Structured Investment Deposit is a complex product and investors should exercise caution in relation to the product. This 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.
  • Investors should not make investment decision based on this marketing material alone.
  • Investment involves risk and past performance is not indicative of future performance.
  • The price of structured products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling structured products.
  • This is a structured investment product, which is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.

View detailed risk disclosure. Please also refer to the offering documents for further details including risk factors.

What is Capital Protected Investment - Currency Linked III?

Starting from HKD50,000, Capital Protected Investments - Currency Linked III (CPI III) is a way to earn potentially higher returns than a traditional time deposit. It keeps 100% of your capital protected, regardless of how your chosen foreign currency performs.

If you're new to investing or are interested in capital protected structured investment products, CPI III could be a great start to your investment journey.

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Why choose CPI - Currency Linked III (CPI III)?

  • Get 100% protection of your capital at maturity

  • Choose from all major currencies, available in bullish or bearish view

  • Get more out of FX and use your potential returns to travel, pay for your children's education or consider other investment decisions

  • Enjoy a flexible range of term lengths from 3-12 months

How CPI - Currency Linked III (CPI III) works?

Take a look at these illustrative examples we've created to show what could happen when you invest in a CPI.

What a CPI placement could include:

Customer view
Deposit currency
Deposit period
Spot exchange rate Trigger rate
Upon maturity, customer receives
Bullish: after 1 year, AUD/USD shall appreciate to 0.7930 or above Australian Dollar (AUD) 1 year 0.7480 0.7930 (spot exchange rate + 0.048)
  • 105.6% of principal if AUD/USD fix is at or above 0.7930
  • 103.7% of principal if AUD/USD fix is below 0.7930
  • Please refer to the return diagram below

What a CPI placement could include:

Customer view
Bullish: after 1 year, AUD/USD shall appreciate to 0.7930 or above
Deposit currency
Australian Dollar (AUD)
Deposit period
1 year
Spot exchange rate 0.7480
Trigger rate
0.7930 (spot exchange rate + 0.048)
Upon maturity, customer receives
  • 105.6% of principal if AUD/USD fix is at or above 0.7930
  • 103.7% of principal if AUD/USD fix is below 0.7930
  • Please refer to the return diagram below

Return diagram:

The diagram displays what a CPI placement could include. It is an illustration of the table previously shown, which shows how a customer receives upon maturity - when it reaches at or above the trigger rate 0.7930 , or when it reaches below the trigger rate 0.7930

Payout scenario:

Payout scenario:
AUD fix at fixing Upon maturity, customer receives Return on investment

Best case scenario above the trigger

rate

0.8030 105.6% of principal 5.6% of principal

Best case scenario equals the trigger

rate

0.7930 105.6% of principal 5.6% of principal

Worst case scenario below the trigger

rate

0.7830 103.7% of principal 3.7% of principal

Payout scenario:

Payout scenario:

Best case scenario above the trigger

rate

AUD fix at fixing 0.8030
Upon maturity, customer receives 105.6% of principal
Return on investment 5.6% of principal
Payout scenario:

Best case scenario equals the trigger

rate

AUD fix at fixing 0.7930
Upon maturity, customer receives 105.6% of principal
Return on investment 5.6% of principal
Payout scenario:

Worst case scenario below the trigger

rate

AUD fix at fixing 0.7830
Upon maturity, customer receives 103.7% of principal
Return on investment 3.7% of principal

Additional scenario: Converting AUD/USD into your home currency at maturity

Assume AUD/USD fixing is 0.7152 and at maturity, and you want to convert your maturity amount from AUD/USD back to HKD, your home currency. Let's assume the initial spot for AUD/HKD on the trade date was 5.75 and AUD/HKD depreciated by 4% during the term of your investment. This means AUD/HKD would be trading at 5.52 on the date of maturity.

In this scenario, the potential loss could offset, or exceed the potential gain if the deposit currency (AUD) depreciates against your home currency (HKD):

The principal amount in HKD at maturity minus the principal amount in HKD on the trade date is:

(103.7% x AUD17,500) x 5.52 - (AUD17,500 x 5.75)= - HKD450.8.

This represents a loss of 0.45% of the principal amount in HKD.

Scenario analysis disclaimer

The above scenarios are illustrations only, and they don't reflect a complete analysis of all possible gain and loss scenarios that may arise during any actual investment. HSBC doesn't present or guarantee that any scenario described can be duplicated under real investment conditions. Actual results may vary from the results shown above, and variations may be material. 

Our fees

You'll pay no additional charges when you invest in our capital protected structured products. Any operational, administrative and hedging costs are covered when we calculate the return income and other variables of the CPI.

Things you should know

  • Unfortunately this product is not available for customers who are US citizens, have a US nationality, are US residents or US tax payers or have a US address (such as a primary mailing, residence or business address in the US).
  • Still undecided? To help you work out whether this is the right investment product for you, we've put together reasons why you may or may not consider investing in a CPI.

Ready to invest into a CPI?

If you've already got an investment account with us, you can set up a CPI investment online.

Don't have an HSBC investment account yet

If you need help with investing, please call us online

  • 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.