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Main Risk
Information
- Return Risk
The yield of Super Yield Deposit is a combination of foreign currency time deposit interest and premium of foreign exchange option. The fluctuation of exchange rates will result in profit or risk. 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. - Principal conversion risk
Disbursement of income from this product is not confined to the base currency in investment. If the foreign exchange rate meets preset conversion conditions, disbursement may be made in the linked currency which if converted back to the base currency at the prevailing foreign exchange rate may be less than 100% of the initial principal amount. - Foreign Exchange Risk
Where investors may choose converted currencies as the base currency for investment or hold the base currency, they may face conversion into the linked currency at maturity. If investors choose to convert back to the base currency or currencies other than the linked currency, they will face foreign exchange risk. - Liquidity risk and the risk of withdrawal by investors before maturity
This product has no liquidity in the market. Contracts with a term shorter than one month cannot be early withdrawn before maturity. If investors need to early withdraw the contract before maturity, they shall assume related cost, expenses and processing fees incurring from the fluctuation of mark to market value due to the premature discharge of the contract. In effect, investors shall assume the risk of not being able to recover the principal in full.
Super Yield Investments Related Information
Investors Disclaimers
- Super Yield Investments are a form of structured product and are different from the traditional forms of time deposit. Therefore, it is not a substitute for regular time deposits and is not inclusive in the extent the Central Deposit Insurance Corporation (CDIC). Investors shall assume the credit risk of HSBC as their own responsibility.
- Investment entails risk. Return of investment is determined by market situation within the term of investment or the expected time span. The underlying performance in such period may be positive or negative, which in turn will affect the return. The return of 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 as investments 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 in assuming risks, investment experience, investment objectives, financial positions and related conditions (effect on legal, taxation and accounting aspects).
