Main risks

• Credit Risk
  HSBC is the issuer of this Structured Deposit. Investors shall assume credit risks of the issuer.
• Return Risk
  Structured Deposit is not a form of traditional deposit but rather an investment instrument linking deposit and derivatives. Investment in this product may yield profit or create risk due to changes in the underlying performance. There is no guarantee that the return on this product is higher than the return on investment in other products or the interest accrued from traditional deposits.
• Interest Rate Risk
  From the date of issuance to maturity, the mark to market value of a structured deposit is influenced by interest rates of the denomination currency of. Such mark to market value may decrease and may fall lower than the face value when the interest rate of the currency rises. Conversely, the mark to market value may increase as the interest rate of the currency falls, and may go even higher than the face value.
• Liquidity Risk
  Unless otherwise agreed upon by and between the Bank and the investor, the investor shall not make early break before the maturity of this product. If so, there is a possibility that the investor may suffer loss in the principal due to the fluctuation of mark to market value. The Bank cannot provide protection on the principal, minimum return of rate, or interest under such circumstances. As such, investors should make sure they have sufficient liquidity during the investment tenor and there is no unanticipated emergency cash need or investors shall assume the risk of not being able to recover the principal in full upon discharge of agreement before maturity due to a mark to market value drop as a result of the low liquidity nature of the product.
• Market Risk
  Many factors can affect the level of the relevant share prices, including the political and economic environment, business conditions, investor sentiment and confidence. All of these factors can refer to local or global markets.
• Underlying Risk
  Where replacement of the Underlying may become necessary under special circumstances, the calculation agency reserves the right to select the appropriate replacement in good faith.
• Early break by Investors before Maturity
  There shall be no early break before maturity for structured deposit.
• Early Redemption by Issuer
  The Notes may be redeemed early by Issuer upon the occurrence of any certain event such as taxation reasons. The redemption amount may be less than original investment amount.
• Foreign Exchange Risk
  Structured deposit is denominated in foreign currencies and investors may convert from other currencies to the denominated currency for the investment. As such, investors should pay attention to possible foreign exchange risk deriving from the conversion among different currencies at maturity for the principal and interest amounts.
• Other risks
  These are event risk, country risk, settlement risk, taxation risk and inflation risk.

Structured Deposits Related Information

• About Structured Deposits
• Structured Deposits Investment Channels
• Investment Example

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