Personal Banking
Currency Linked Investments – Dual Currency Investment
- This is a structured investment product involving derivatives. The investment decision is yours but you should not invest in this product 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. This product is not principal protected. You may lose all or part of your Principal Amount and Interest Amount.
- Before making any investment decision, you should assess your own financial situation, investment experience, investment objectives, willingness and ability to bear risks, and understand the nature and risks of the product. If in doubt, you should seek advice from independent financial advisers.
- This promotional material is for reference only. It is not and does not constitute any offer, solicitation or recommendation to buy, sell or provide any investment product or service.
- This promotional material is issued by Nanyang Commercial Bank, Limited. The contents of this promotional material have not been reviewed by any regulatory authority in Hong Kong.
- This product is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.
#The annual rate of return of HKD is calculated on a 365-day basis. In addition, the annual rate of return is NOT equivalent to, nor should it be treated as actual returns.
Note: The above Illustrative Example and the Scenario Analysis are prepared with hypothetical data, and are not based on the past performance of the currencies as stated herein. They are for reference only and do not guarantee or represent the final returns of Dual Currency Investment. The above hypothetical examples should not be relied on as an indication of the actual performance of the Linked Currency or this product. You should not rely on these examples when making an investment decision.
This product is subject to the relevant terms and conditions. For details, please contact our branch staff.
The following risk disclosure statements cannot disclose all the risks involved. Prior to trading or investment, you should collect and study the information required for your investment. Please refer to the relevant offering documents for the details of its risk factors. You should carefully consider whether trading or investment is suitable in light of your own financial position and investment objectives. You should seek independent financial and professional advice before trading or investment. If you are uncertain of or have not understood any aspect of the following risk disclosure statements or the nature and risks involved in trading or investment, you should seek independent advice.
Risk Disclosure Statement on Currency Linked Investments – Dual Currency Investment (“this product”):
- Not a time deposit – Currency Linked Investments–Dual Currency Investment 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 Investments –Dual Currency Investment is embedded with FX option. Option transactions involve risks, especially when selling an option. Although the premium received from selling an option is fixed, you may sustain a loss well in excess of such premium amount, and your loss could be substantial.
- Limited potential gain – The maximum potential gain of this product is limited to the nominal interest calculated at the Interest Rate percentage.
- Maximum potential loss – Currency Linked Investments –Dual Currency Investment is not principal protected: you could lose all of your principal amount.
- Not the same as buying the linked currency – Investing in Currency Linked Investments –Dual Currency Investment is not the same as buying the linked currency directly. According to the fixing result made on the fixing date, customer will get back the principal amount plus the interest in either the investment currency or the linked currency on the maturity date.
- Market risk – The return on Currency Linked Investments –Dual Currency Investment is limited to the nominal interest payable, which will be dependent, to at least some extent, on movements in some specified currency exchange rate. Whilst the possible return may be higher than conventional time deposits, it is normally associated with higher risks. When the fluctuation of the currency exchange rates differs from what the customer expected, the customer may have to bear the consequential loss. Currency exchange rates are affected by a wide range of factors, including national and international financial and economic conditions and political and natural events. The effect of normal market forces may at times be countered by intervention by central banks and other bodies. At times, exchange rates, and prices linked to such rates, may rise or fall rapidly. Exchange controls or other monetary measures may be imposed by a government, sometimes with little or no warning. Such measures may have a significant effect on the convertibility or transferability of a currency and may have unexpected consequences for a Currency Linked Investments –Dual Currency Investment.
- Liquidity risk – Currency Linked Investments –Dual Currency Investment is designed to be held till maturity. You do not have a right to request early termination of this product before maturity. This product is unlisted and there is no secondary market.
- Credit and insolvency risk of the Bank – The Bank is acting as the principal of this investment product. This product is not collateralized. 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 principal amount.
- Currency risk – In relation to a Currency Linked Investments –Dual Currency Investment, the Principal Amount itself maybe subject to variation by reference to the relevant currency exchange rate or may be repaid in a different currency. The total return on a Currency Linked Investments –Dual Currency Investment may be negative(when measured in terms of the Investment Currency), and, depending on the particular terms of a Currency Linked Investments –Dual Currency Investment, the value of the principal repayable on Maturity Date may be significantly less than the value invested, in the event of an adverse movement in the relevant exchange rate. If the investment currency and/or the linked currency is not in 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 even you receive the interest from this product.
- Risks of early termination by the Bank – The Bank has the right (but not the obligation) to terminate this product early upon occurrence of certain events. If this product is terminated by the Bank early, your return of this product might be negatively affected.
- RMB currency risk - RMB is subject to the PRC government's control (for example, exchange restrictions). Besides, there is no guarantee that RMB will not depreciate. If customers convert Hong Kong Dollar or any other currency into RMB so as to invest in RMB denominated investment products and subsequently convert the RMB redemption proceeds back into Hong Kong Dollar or any other currency, you may suffer a loss if RMB depreciates against Hong Kong Dollar or other currency.
- Not covered by the Investor Compensation Fund - This product is not covered by the Investor Compensation Fund.