FX and Cash management
Dual Currency Investments are investment products with currency options. It offers not only deposit interest, but also an enhanced interest derived from the currency option - allowing potentially high interest returns on foreign exchange.
Choose a currency as the base currency and another as an alternative (the currency that you can access and willing to hold). After you choose the currency pair, total yield and rate trigger will be determined by product terms, including investment tenor, agreed exchange rate, etc.
The risks described below are the major risks of this investment. Please refer to the section of major risk disclosure in the Dual Currency Investments document.
The worst case scenario is to lose all capital invested
The product is an investment, not a deposit; you shall take on market and credit risks of this product. In the worst case scenario, you will not acquire any gains and will lose original principal when the Bank is not able to fulfil the product obligation.
Underlying instrument risk and Foreign Exchange Risk
You will be exposed to the risk of foreign exchange market fluctuations, which might affect the investment return. You shall intend to hold alternative currency at maturity. The income might be significantly less than the principal if it is converted to base currency. In the worst case scenario, the principal and return is exposed to the risk of losing up to 30% of the capital invested if the alternative currency greatly depreciates against the base currency.
Liquidity Risk, Early Termination Risk and Reinvestment Risk
You shall intend to hold this investment to the maturity and shall not redeem or terminate Dual Currency Investment before maturity. In addition, you shall not collect part or all of the principal or any amount of your investment before maturity. Given the validity of this precondition, the Bank may agree to terminate the product before maturity based on the terms acknowledged and approved by the Bank.
You shall notice that the payment of the Bank for early termination under such circumstance may be significantly less than the principal invested. You shall also be liable for all losses and damages of the Bank incurred by early termination, including but not limited to all kinds of costs, expenses, service fees or default penalties due to market price fluctuations.
You may lose some of your original investment for early termination (in the worst case scenario, you may loss all of your original investment ) or such termination is not possible in the first place.
If you desire to terminate your Dual Currency Investment before the maturity date, you shall take on the risk of losing part of your original investment and reinvestment risk.
This Product is an investment and is excluded from coverage of deposit insurance. You shall take on credit risk of the Bank. In the worst case scenario, you may loss your principal, interest and enhanced gain if the Bank defaults.
Dual Currency Investment gains are subject to tax withholding according to related tax regulations and the regulatory authority’s orders.
If the aforementioned tax regulations are amended, your gains might be less than you expected when you invested.