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Investment Example
Information
“ 1-Year GBP/USD Foreign Exchange Rate linked Structured Deposit”
- Return rate may be up to: 11% (p.a.) (According to market condition)
- Denomination Currency: USD
- Tenor of investment: 1 year
- Value date: 2006/9/29
- Maturity date: 2007/10/1
- Fixing date: 2007/9/27(Determine the rate of return at maturity)
- Option: bearish view on foreign exchange rate of GBP/USD
Return rate at maturity:
- If the GBP/USD fixing rate is equal to or lower than the Target Foreign Exchange Rate, return rate =11% (p.a.)
- If the GBP/USD fixing rate is higher than Target Foreign Exchange Rate, return rate =0.5% (p.a.)
- Target Foreign Exchange Rate: the Target Foreign Exchange Rate would be set based on GBP/USD foreign exchange rate on Initial Valuation Date using the following conditions:
- If the GBP spot rate on Initial Valuation Date is 1.8754, the Target Foreign Exchange Rate will be 1.8754-0.060=1.8154
Minimum return: 0.5% (p.a.) (According to market condition)
Maximum return: 11% (p.a.) (According to market condition) - Depending on the GBP/USD foreign exchange rate on the Fixing Date, assuming the Target Foreign Exchange Rate is 1.8154, there will be 2 possible outcomes on the return rate for this “Structured Deposit” at maturity:
Structured Deposits Related Information
- About Structured Deposits
- Structured Deposits Investment Channels
- Main risks for investment in “Structured Deposits ”
Disclaimers
Structured deposit is a form of structured product and is different from the traditional form of time deposit. Therefore, it is not a substitute for regular time deposits and is not inclusive in the extent of the Central Deposit Insurance Corporation (CDIC). Investors shall assume the credit risk of HSBC as their own responsibility.
Investment entails risk. Return from the investment is determined by market situation within the investment tenor or the expected time span. The performance of a structured deposit in such a period may be positive or negative, which in turn will affect the return. The return from this product may fall lower than the return of time deposits covering the same period. Investors shall prepare to assume risk, and may not earn the same interest from investment otherwise with the same principal. Investors shall make independent judgment on participation in any of the investment programs cautiously with reference to their own capacity to assume risks, investment experience, investment objectives, financial positions and related conditions (effect on legal, taxation and accounting aspects).
