HK$50,000 (or its equivalent in other currencies, subject to the minimum deposit amount of the respective currency) 1 week 3 months

Transcription

1 Important Facts Deposit Plus Currency-Linked Deposit Last update date: 14 January 2014 The Hongkong and Shanghai Corporation Limited This is a structured investment product, which is NOT protected by the Deposit Protection Scheme in Hong Kong. This product is NOT principal protected. The contents of this statement have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution before investing in this product. This statement is a part of the offering documents for this product. You should not invest in this product based on this statement alone. If you are in any doubt, you should obtain independent professional advice. If English is not your preferred language, you may request for the Chinese version of this statement from our sales staff. 倘若英文並非閣下屬意的語言, 閣下可向本行的銷售人員索取本概要的中文版本 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. Quick facts Bank: Product type: Minimum deposit: Tenor: Available deposit currency: Available linked currency: Principal protection at maturity: Callable by the Bank: Early termination right by the customer: Embedded derivatives: Maximum potential gain: Maximum potential loss: The Hongkong and Shanghai Corporation Limited Currency-linked Deposit HK$50,000 (or its equivalent in other currencies, subject to the minimum deposit amount of the respective currency) 1 week 3 months Hong Kong dollar, US dollar, Australian dollar, Canadian dollar, Euro, Pound Sterling, New Zealand dollar, Japanese yen, Swiss franc or Singapore Dollar Hong Kong dollar, US dollar, Australian dollar, Canadian dollar, Euro, Pound Sterling, New Zealand dollar, Japanese yen, Swiss franc or Singapore Dollar No No No. 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. Yes. Customer is selling a put option over the linked currency. Maximum gain equals the Deposit Plus interest on the deposit. Loss may be incurred if the deposit is converted to the linked currency at maturity, depending on the value of the currency paid. What is this product and how does it work? Deposit Plus is a structured product that consists of a time deposit (in the deposit currency) and selling of a put option on the linked currency of your choice. It enables you to maximise your wealth potential while meeting your need for foreign currencies. By taking (continue on next page) Issued by The Hongkong and Shanghai Banking Corporation Limited. Page 1/5

2 (continued) advantage of exchange rate movements, Deposit Plus offers you the opportunity to increase your interest above that of normal time deposits. When your Deposit Plus matures, your principal and interest will be paid in either the deposit currency or the linked currency, depending on the exchange rate on the fixing date compared to the conversion rate defined at deposit start. (The fixing date will be set out in the confirmation that will be given to you once your Deposit Plus is placed.) What are the key risks? Not a time deposit Deposit Plus 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 Deposit Plus is embedded with FX option(s). 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 is limited to the interest on the deposit. Maximum potential loss Deposit Plus is not principal protected. You must be prepared to incur loss as a result of depreciation in the value of the currency paid (if the deposit is converted to the linked currency at maturity). Such loss may offset the interest earned on the deposit and may even result in losses in the principal amount of the deposit. Not the same as buying the linked currency Investing in Deposit Plus is not the same as buying the linked currency directly. Market risk The net return of Deposit Plus will depend upon the exchange rate of the deposit currency against the linked currency prevailing at the deposit fixing time on the deposit fixing date. Movements in exchange rates can be unpredictable, sudden and drastic, and affected by complex political and economic factors. Liquidity risk Deposit Plus 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 Deposit Plus 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 and/or linked 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. What are the key features? Minimum deposit amount: HK$ 50,000 (or its equivalent in other currencies, subject to the minimum deposit amount of the respective currency) Choice of tenor: 1 week to 3 months Choice of deposit & linked currencies 1 : A variety of currencies including Hong Kong dollar, US dollar, Australian dollar, Canadian dollar, Euro, Pound Sterling, New Zealand dollar, Japanese yen, Swiss franc or Singapore dollar to suit your need for foreign currency. Embedded Option: Selling of a put option on the linked currency is embedded in the product. Deposit Plus interest rate & Conversion Rate: These are fixed when the Deposit Plus is placed. Maturity payout: You will be paid in either the deposit or linked currency, depending on the exchange rate on the fixing date compared to the conversion rate defined at deposit start. If your selected currencies move in the direction you anticipate, you will enjoy favourable returns in the deposit currency. If they move in the other direction, your principal and interest will be converted to the linked currency at the conversion rate. Early redemption: Early redemption of the deposit is not allowed. 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. 1 We do not offer a Hong Kong dollar and US dollar as a deposit and linked currency pair for Deposit Plus. (continue on next page) Issued by The Hongkong and Shanghai Banking Corporation Limited. Page 2/5

3 (continued) Scenario analysis The following example illustrates various scenarios^ that determine the final redemption currency and your return. Deposit currency Hong Kong dollar (HKD) Linked currency Australian dollar (AUD) Trade date 14 December 201X Deposit date 16 December 201X Fixing date 28 December 201X Maturity date 30 December 201X Interest period 14 days Conversion rate Deposit amount HK$50,000 Deposit Plus interest rate 13.25% p.a. Payout upon maturity If the AUD/HKD exchange rate is at or above at fixing, the principal and interest will be paid in HKD. If the AUD/HKD exchange rate is below at fixing, the principal and interest will be paid in AUD. Redemption scenarios Exchange rate upon fixing Principal + interest Scenario 1 Best Case Scenario AUD strengthens against HKD Scenario 2 Best Case Scenario AUD remains constant against HKD Scenario 3 Middleof-the road scenario AUD weakens slightly against HKD Scenario 4 Worst Case Scenario AUD weakens considerably against HKD A$1 = HK$ A$1 = HK$ A$1 = HK$ A$1 = HK$ Redemption in HKD: HK$50, Redemption in HKD: HK$50, Redemption in AUD: A$6, Convert to HK$ with exchange rate upon fixing = HK$50, (A$6, ) Redemption in AUD: A$6, Convert to HK$ with exchange rate upon fixing = HK$39, (A$6, ) Return HK$ HK$ HK$ HK$10, In the worst case scenario (scenario 4), you will receive return in the linked currency the value of which may be worth substantially less than the original amount you invested (and in the extreme case could be worth nothing). ^ The above scenarios are for reference only. Return depends upon the market conditions on the fixing date. Interest = principal x interest rate p.a. x tenor (in number of days). 365 days (if deposit currency is HKD, GBP or SGD) or 360 days (if deposit currency is other foreign currencies) Assume the deposit is converted back to HKD upon maturity and the exchange rate equals to the rate upon fixing. As a reference, if a sum of HK$50,000 is placed in a conventional 2-week Hong Kong dollar time deposit on 14 December 201X, the interest rate is 0.001% p.a. (continue on next page) Issued by The Hongkong and Shanghai Banking Corporation Limited. Page 3/5

4 (continued) Scenario 5: The Bank becomes insolvent or defaults on its obligations Assuming that the Bank becomes insolvent during the tenor of this product or defaults on its obligations under this product, you can only claim as its unsecured creditor. You may get nothing back and suffer a total loss of your deposit amount. Scenario Analysis Disclaimer The above scenarios are provided for illustrative purposes only, and do not reflect a complete analysis of all possible gain and loss scenarios that may arise during any actual investment. No representation or warranty is made by the Bank that any scenario described above can be duplicated under real investment conditions. Actual results may vary from the results shown above, and variations may be material. How can you buy this product? You can purchase the product via any of our branch, internet banking at mobile banking or by calling us on (852) (for HSBC Premier customers), (852) (for HSBC Advance customers) or (852) (for Other Personal Banking customers). Pre-Investment Cooling-off Period for retail customers Pre-Investment Cooling-off Period (PICOP) is applicable to each particular dealing of this product if you are one of the following retail customer types: (1) An elderly customer aged 65 or above, unless you are not a first-time buyer of currency-linked structured investment products AND your asset concentration 2 is below 20% AND you opt out from the PICOP arrangement; or (2) A non-elderly customer who is a first time buyer of currency-linked structured investment products AND your asset concentration is 20% or above. If Pre-Investment Cooling-off Period is applicable to you, you can only subscribe for the product at least 2 calendar days (of which the last day should be a business day) after product discussion with the Bank. This is to ensure that you have sufficient time to understand the product and consider the appropriateness of the investment before deciding on the subscription. Offering documents for this product The following documents for this product ( Offering Documents ) contain detailed information about the Bank and the terms of this product. You should read and understand all of the Offering Documents before deciding whether to invest in this product: Deposit Plus Supplemental Terms and Conditions This Important Facts Statement If you are in any doubt about any of the contents of the offering documents, you should take independent professional advice. Additional information Product Risk Level: Low to Medium The price volatility of the product is low to medium. Some market monitoring and management may be required to control the relevant risks of the product. The product may be suitable for investors who are happy to accept low-to-medium level of investment risk. Investor commitment You take a view that the linked currency will be stable or will appreciate against current level at the end of the deposit period. You are expected to place your funds in the Deposit Plus for the full deposit period. You should make sure you have sufficient liquid emergency funds to meet any unforeseen circumstances. You should avoid excessive investment in a single type of investment, with regard to its total proportion of your overall portfolio, in order to guard against over-exposure to any single investment. You understand and accept that Deposit Plus interest starts to accrue only on the date of debit of the relevant sum from your designated account (i.e. the deposit date) which will be 2 business days after submission date of your application if accepted by the Bank. 2 For the purpose of determining whether PICOP is applicable, asset concentration refers to the percentage of total net worth (excluding real estate properties) to be invested in this product. (continue on next page) Issued by The Hongkong and Shanghai Banking Corporation Limited. Page 4/5

5 (continued) Acknowledgement The Bank is not making, and has not made, any representation whatsoever as to the linked currency. In placing any Deposit Plus or making investment in any products referred to herein, you confirm that you are not relying on either the views or advice of the Bank or any other HSBC Group company. You confirm that you understand that (i) the Deposit Plus taker is The Hongkong and Shanghai Banking Corporation Limited (ii) the Bank does not owe any obligations to you to take any action other than that prescribed by the terms and conditions of Deposit Plus. (iii) the Bank benefits from the origination and distribution of Deposit Plus You confirm that you understand that while Deposit Plus is designed to produce potential returns superior to time deposits of similar tenor, actual return depends on the performance of the linked currency. Notes Please note that Deposit Plus is not available for persons who are US citizen / with US nationality, are US resident or US tax payer, or have a US address (e.g. primary mailing, residence or business address in the US). Advice will be issued to customers upon deposit placement & maturity. Effective from 13 August 2013, free SMS notification on Deposit Plus maturity will be sent to customer 2 calendar days before the Maturity date provided that 1) customer s mobile phone service is registered in Hong Kong and 2) customer s correspondence address is in Hong Kong in accordance to the Bank s record. The SMS notifications will NOT be sent to customers if 1) customer is a HSBC staff, or 2) in any event it deems inappropriate to send the SMS to customer in accordance to the Bank s policy as designated by the Bank from time to time. If customer does not place any new Deposit Plus order 7 calendar days after the Deposit Plus maturity, another reminder SMS notification will be sent to customer. This service is subject to change without prior notice. To opt out, please call (852) for HSBC Premier customers, (852) for HSBC Advance customers or (852) for other Personal Banking customers. This document is not intended to provide and should not be relied upon for tax, legal or accounting advice, investment recommendation or a credit or other evaluation of the product. Prospective investors should consult their tax, legal, accounting or other advisors. There are no additional charges on the deposit, all operational, administrative and hedging costs, etc have already been contained and subsumed within the calculation of the return and/or other variables of this deposit. If you have any feedback or complaint about any aspect of the service you have received, please contact our Hong Kong branches, call (852) for HSBC Premier customers, (852) for HSBC Advance customers or (852) for Other Personal Banking customers, or write to the Quality Service Management Department at GPO Box 64, Hong Kong, or send an to feedback@hsbc.com.hk. We will respond to a complaint within a reasonable period of time normally not exceeding 30 days in general circumstances. If you are not satisfied with the outcome of your complaint, you have the right to refer the matter to the Banking Services Complaints Unit of Hong Kong Monetary Authority at 55th Floor Two International Finance Centre, 8 Finance Street, Central, Hong Kong. Issued by The Hongkong and Shanghai Banking Corporation Limited. Page 5/5

6 The Hongkong and Shanghai Banking Corporation Limited TIME DEPOSITS - DEPOSIT PLUS SUPPLEMENTAL TERMS AND CONDITIONS 1. These Terms and Conditions are supplemental to the Terms and Conditions for Time Deposits (the "Time Deposit Terms") in force from time to time. These Terms and Conditions and the Time Deposit Terms shall apply to all Deposit Plus deposits (the "Deposits"). In the event of any conflict between these Terms and Conditions and the Time Deposit Terms, these Terms and Conditions will prevail for the purposes of the Deposits. 2. Deposits 2.1 Deposits may be made in such currency as the Bank may agree at its absolute discretion. The Bank may impose such additional conditions in relation to any Deposit as the Bank thinks fit in respect of the Deposit Currency and/or the Linked Currency, such additional terms to be contained in the relevant Confirmation. 2.2 Each Deposit must be of not less than a minimum amount specified by the Bank from time to time. 2.3 The terms of each Deposit shall be subject to the terms of each separate Confirmation to be issued in respect of each Deposit. The terms of each Confirmation shall be read with these Terms and Conditions and the Time Deposit Terms and shall be deemed to form a single agreement between the Bank and the Customer. In the event of any conflict between these Terms and Conditions, the Time Deposit Terms and a Confirmation, the terms of the Confirmation will prevail. 2.4 Any repayment of a Deposit (whether on Maturity or otherwise) as provided in Clause 3 below shall be paid to the credit of an account with the Bank in Hong Kong unless the Bank shall at its sole discretion agree to the contrary. 3. Return and Currency of Deposit 3.1 On the Maturity Date the Bank shall pay to the Customer for value on the Maturity Date, subject as provided below, for the credit of such account with the Bank as the Customer shall have nominated in any disposal instructions (or if the Customer has not nominated an account or the nominated account has been closed, such other account of the Customer as the Bank shall decide), the principal amount of the Deposit and interest thereon calculated in accordance with Clauses 3.2 and 3.3 below. 3.2 Interest shall be calculated on the principal amount of the Deposit on the basis of the number of days in the Interest Period (or which have elapsed prior to any breaking of the Deposit for whatever reason) and the relevant Interest Year. 3.3 Interest shall accrue at the rate specified in the relevant Confirmation. 3.4 For a Deposit where a Trigger Rate has not been specified in the relevant Confirmation, or to the extent Clause 3.5 applies, the Deposit and interest payable thereon will be repaid in the Deposit Currency where: (i) the Final Exchange Rate is less than or equal to the Conversion Rate, if the Relevant Rate specified in the relevant Confirmation is the amount of the relevant Linked Currency for one unit of the relevant Deposit Currency; or (ii) the Final Exchange Rate is greater than or equal to the Conversion Rate, if the Relevant Rate specified in the relevant Confirmation is the amount of the relevant Deposit Currency for one unit of the relevant Linked Currency, and the Deposit and interest payable thereon will be repaid in the Linked Currency where: (i) the Final Exchange Rate is greater than the Conversion Rate, if the Relevant Rate specified in the relevant Confirmation is the amount of the relevant Linked Currency for one unit of the relevant Deposit Currency; or (ii) the Final Exchange Rate is less than the Conversion Rate, if the Relevant Rate specified in the relevant Confirmation is the amount of the relevant Deposit Currency for one unit of the relevant Linked Currency. 3.5 For each Deposit where a Trigger Rate has been specified in the relevant Confirmation, either one of the following options will apply depending on the terms specified in the relevant Confirmation: (i) (a) If the FX Rate has NOT traded at or above the Trigger Rate at any time during the Observation Period, Clause 3.4 shall apply. (b) If the FX Rate has traded at or above the Trigger Rate at any time during the Observation Period, the Deposit and interest payable thereon will be repaid in the Deposit Currency. (ii) (a) If the FX Rate has traded at or above the Trigger Rate at any time during the Observation Period, Clause 3.4 shall apply. (b) If the FX Rate has NOT traded at or above the Trigger Rate at any time during the Observation Period, the Deposit and interest payable thereon will be repaid in the Deposit Currency. (iii) (a) If the FX Rate has NOT traded at or below the Trigger Rate at any time during the Observation Period, Clause 3.4 shall apply. (b) If the FX Rate has traded at or below the Trigger Rate at any time during the Observation Period, the Deposit and interest payable thereon will be repaid in the Deposit Currency. (iv) (a) If the FX Rate has traded at or below the Trigger Rate at any time during the Observation Period, Clause 3.4 shall apply. (b) If the FX Rate has NOT traded at or below the Trigger Rate at any time during the Observation Period, the Deposit and interest payable thereon will be repaid in the Deposit Currency. 3.6 Notwithstanding anything to the contrary, in relation to each Deposit to which Clause 3.5 (i), (ii), (iii) or (iv) applies, if the conditions set out in sub-clause (b) of such clause are satisfied at any time prior to such date of maturity and if the Bank s Early Repayment Option is specified as being applicable in the relevant Confirmation, then the Bank may, in its sole discretion and with binding effect on the Customer, elect an earlier date which is a Business Day to be the Maturity Date in which case such earlier date shall be deemed the Maturity Date for the purposes of these Terms and Conditions, including Clause 13, to the extent they relate to the Deposit. 4. Withdrawals A Deposit may not be withdrawn prior to its Maturity Date without the consent of the Bank. The Bank may at its absolute discretion refuse to give such consent, or impose such conditions as the Bank may determine for the withdrawal of such Deposit, such conditions to include (without limitation) the deduction of such breakage costs as the Bank shall determine conclusively acting in good faith. Such breakage costs shall include the costs, expenses, liabilities or losses incurred or suffered by the Bank as a consequence of breaking its hedge, or funding from other sources in respect of the Deposit and/or in respect of the Linked Currency and therefore the total amount repaid on withdrawal may be less than the principal amount of the Deposit. 5. No Renewal There can be no automatic renewal of Deposits. 6. Representations and Warranties Any Customer which is a body corporate hereby represents and warrants that it has the authority and power to enter into these Terms and Conditions and to make the Deposit, that it has taken all necessary corporate steps to authorise the execution hereof and that the terms hereof are legally binding upon it and are fully enforceable against it. 7. Waiver No act or omission by the Bank shall affect its rights, powers or remedies hereunder or any further or other exercise of such rights, powers or remedies. 8. Force Majeure If the Bank is prevented from, hindered or delayed by reason of force majeure or act of State, in the performance of any of its obligations under these Terms and Conditions or any Confirmation, the Bank will not be under any liability to the Customer for any loss, damage, cost or expense incurred by the Customer due to the inability or failure of the Bank to perform any such obligation. 9. Invalidity, Illegality or Unenforceability In the event that any one or more of the provisions contained in these Terms and Conditions or any Confirmation should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions hereof or thereof shall not in any way be affected or impaired thereby. 10. Certificates The Bank's certificate as to the amount of any sum payable by the Bank or to the Bank pursuant hereto shall be conclusive save in the case of manifest error. 11. Law and Jurisdiction This Agreement shall be subject to, governed by and construed in accordance with the laws of the Hong Kong Special Administrative Region and the parties submit to the non-exclusive jurisdiction of the Hong Kong courts. Page 1/2 Member HSBC Group

7 12. Tax Any return, principal and/or interest will be paid subject to any deduction or withholding in respect of tax required to be made by law. The amount of tax deducted (if applicable) will be advised each time any return, principal and/or interest is paid. 13. Definitions 'Bank' means The Hongkong and Shanghai Banking Corporation Limited, including its successors and assigns, of 1 Queen's Road Central, Hong Kong, a registered institution under the Securities and Futures Ordinance. The Bank is registered with the Securities and Futures Commission, Hong Kong with central entity number AAA523; 'Business Day' means a day (other than a Saturday or a Sunday) on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in Hong Kong and in the principal banking centres of the country of issuance of the Deposit Currency and the Linked Currency; 'Confirmation' means each separate Confirmation issued by the Bank to the Customer in respect of each Deposit pursuant to these Terms and Conditions, and 'relevant Confirmation' means, in relation to each Deposit, the Confirmation issued by the Bank pursuant to Clause 2.3 in respect of such Deposit; 'Conversion Rate' means, in relation to each Deposit, the Relevant Rate specified as such in the relevant Confirmation; 'Customer' means any person or corporation making a Deposit and extends to the Customer's successors and assigns. Where the Customer comprises two or more persons (persons to include individuals, associations, companies and partners of a named partnership) (i) reference to the Customer shall be deemed to refer to each such person individually, (ii) any act or omission of one shall be deemed the act or omission of them all, (iii) they shall be jointly and severally liable to the Bank for the obligations of the Customer under these Terms and Conditions, (iv) any communication required to be made to the Customer may be sent to the address last known to the Bank of any one or more of such persons, and (v) any notice to be served on the Customer under these Terms and Conditions shall be validly served if served on any one of them. Where the Customer comprises a partnership, the expression shall include the person or persons from time to time carrying on the business of that partnership; 'Deposit' means each deposit lodged with the Bank pursuant to these Terms and Conditions the principal amount of which being set out in the relevant Confirmation; 'Deposit Currency' means, in relation to each Deposit, the currency in which such Deposit is denominated when received by the Bank, as set out in the relevant Confirmation; 'Deposit Date' means, in relation to each Deposit, the date on which such Deposit is made with the Bank in accordance with these Terms and Conditions, such date being a Business Day, as set out in the relevant Confirmation; 'Final Exchange Rate' means, in relation to each Deposit, the Relevant Rate as quoted by the Bank in good faith, as of approximately the Fixing Time on the Fixing Date; 'Fixing Time' means 2:00pm Hong Kong time; 'Fixing Date' means, in relation to each Deposit, the date set out in the relevant Confirmation; 'FX Rate' means, in relation to each Deposit, the Relevant Rate prevailing at any particular time during the Observation Period as determined by the Bank, which rate shall be conclusive and binding for the purposes hereof save for manifest error. 'Interest Period' means, in relation to each Deposit, the period from and including the Deposit Date to but excluding the Interest Period End Date relating to such Deposit; 'Interest Period End Date' means, in relation to each Deposit, the Maturity Date as specified in the relevant Confirmation (and for the purposes of this definition, no adjustment to the Maturity Date as contemplated in the definition of 'Maturity Date' set out below shall be made); 'Interest Rate' means, in relation to each Deposit, the interest rate specified in the relevant Confirmation; 'Interest Year' means the number of days in a year for the purpose of calculating the accrual of interest determined by the Bank by reference to the current market practice in Hong Kong in respect of the Deposit Currency; 'Linked Currency' means, in relation to each Deposit, such currency other than the Deposit Currency selected by the Customer and agreed by the Bank in the relevant Confirmation; 'Maturity Date' means, in relation to each Deposit, the date of maturity of such Deposit as agreed by the Bank and the Customer and set out in the relevant Confirmation, or if such date is not a Business Day the next following date which is a Business Day; or otherwise as determined in accordance with these Terms and Conditions. 'Observation Period' means, in relation to each Deposit, the period from, and including, the start date to, and including, the end date specified for such period in the relevant Confirmation. Subject to anything contrary specified in the relevant Confirmation, an Observation Period shall commence at 2:00pm Hong Kong time on the start date, and end at 2:00pm Hong Kong time on the end date. (Note: No business day adjustment is being made to the end dates of an Observation Period.) 'Relevant Rate' means, in respect of the Deposit Currency and Linked Currency selected by the Customer and agreed by the Bank at its sole discretion, the amount of the relevant Linked Currency for one unit of the relevant Deposit Currency; or the amount of the relevant Deposit Currency for one unit of the relevant Linked Currency; 'Trigger Rate' means, in relation to each Deposit, the Relevant Rate specified in the relevant Confirmation. 14. Risk Disclosure Statement The net return on the Deposit will depend upon market conditions prevailing during the Observation Period and/or at the Fixing Time on the Fixing Date. You must be prepared to risk any loss as a result of depreciation in the value of the currency paid. Such loss may offset the interest earned on the deposit and may even result in losses to the principal amount of the Deposit. If you have any concerns about this product you should consult your professional advisers. Note: In case of discrepancies between the English and Chinese versions, the English version shall apply and prevail. TIME DEPOSITS DEPOSIT PLUS SUPPLEMENTAL TERMS AND CONDITIONS Page 2/2

8 Important Notice The following offering documents contain detailed information about the terms of Deposit Plus. Before you make investment decision in Deposit Plus, please make sure you have received and read the latest version of the documents. Deposit Plus Important Facts Statement Time Deposits Supplemental Terms and Conditions for Deposit Plus Upon your subsequent subscription of Deposit Plus, you would be deemed to confirm your understanding and acceptance of the following: You understand and accept that explanation on product suitability is made by the Bank solely based on information including, without limitation, risk appetite, financial situation, investment experience and objectives provided by you, and that product suitability will be adversely affected if any such information provided by you is inaccurate, misleading or incomplete for which neither the Bank assumes any responsibility. You understand that HSBC is not making, and has not made, any representation whatsoever as to the underlying, and you confirm that you have not only relied on views or advice or explanation of the Bank in assessing the merits, risks and suitability of Deposit Plus. You understand and accept that any decision to purchase Deposit Plus shall be based on your own judgment and that you have relied upon information independently obtained by yourself and not only on any advice or explanation or information provided by the Bank. You understand that you are advised to set aside at least 6 months personal/household expenses as liquid assets for unforeseeable emergency personal or family needs when considering the amount of funds available for achieving your financial goals If you are aged 65 years or above upon your subsequent subscription, and i) you choose not to complete the risk profiling questionnaire or provide your product selection criteria, or ii) the risk rating of Deposit Plus is higher than your attitude towards investment risk, please be reminded that investment might result in loss of principal, you may need to prolong your investment horizon in order to attain your expected return from the investment. This may have impact on your retirement plan. Please be reminded that you should avoid excessive investment in a single type of investment to guard against over-exposure to any single investment, especially if the investment amount exceeds 50% of your total portfolio. You are advised to diversify your investments and distribute the amount of funds across different products. 重要通知 以下高息投資存款的銷售文件載有關於高息投資存款條款的詳細資料 當您作出投資決定之前, 請確保您已收到並閱讀這些文件的最新版本 高息投資存款重要資料概覽 高息投資存款補充條款 當您往後投資高息投資存款, 您將被視為確認您理解和接受以下各點 : 本行在解釋產品是否適合投資時僅依據您所提供的資料 ( 包括但不限於風險偏好 財務狀況 投資經驗及投資目標 ); 倘您提供的任何該等資料有誤 存在誤導或不全時, 將會對產品是否適合您投資的判斷帶來不利影響, 而本行對此概不承擔責任 您確認在評估高息投資存款的投資價值 風險及是否適合投資時, 您並不只依賴滙豐的觀點 意見或解釋 您明白及接受您乃根據自身的判斷作出有關購買高息投資存款的任何決定 ; 明白及接受您除了依賴滙豐提供的任何意見 解釋或資料之外, 還依賴您獨立獲得的資料 您明白本行的建議, 當您考慮投放於理財目標的金額時, 應先預留六個月個人 / 家庭開支金額作流動資產, 以應付突如其來的個人或家庭開支 如您往後投資高息投資存款時年齡在 65 歲或以上, 而 i) 你選擇不完成風險取向問卷或提供挑選產品準則或 ii) 高息投資存的風險評級高於你的投資風險取向, 請注意投資有機會令本金虧損, 投資波幅可能令您需延長投資期以達致預期回報, 這可能影響您的退休生活預算 請注意您應避免將超過百分之五十的資產投放於一種投資產品, 以避免對個別投資產品承受過多風險 您應考慮將資金分散投資於不同產品上 Issued by The Hongkong and Shanghai Banking Corporation Limited 由香港上海匯豐銀行有限公司刊發