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Risk Disclosure
Important Note
- Investment involves risks. The prices of investment products
fluctuate, sometimes dramatically, and may become valueless. Before
making any investment decision, customers are encouraged to consult
their own independent financial advisors and read the relevant offering
documents for further details including the risk factors in order to
ensure that they fully understand the risks associated with the
investment products.
- Securities are not equivalent to or substitute for time
deposits. Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock
Connect are not covered by Hong Kong’s Investor Compensation Fund. It
involves risks of quotas used up, difference in trading day,
restrictions on selling imposed by front-end monitoring, recalling of
eligible stocks, and mainland market risks.
- Some mutual funds and bonds may involve derivatives.
Structured equity-linked products and FX linked deposits are structured
products involving derivatives. The investment decision is yours but you
should not invest in an investment 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.
- Investment products including FX linked deposits are not
equivalent to or alternative of time deposits. They are not protected
deposits, and are not protected by the Deposit Protection Scheme in Hong
Kong. Some FX linked deposits are not principal-protected while some FX
Linked Deposits are principal-protected conditionally.
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Risk Disclosure
Investment involves risks. The prices of investment products fluctuate,
sometimes dramatically, and may become valueless. Investors should not
invest based on this promotion material alone. Before making any
investment decision, customers should consult their own independent
professional financial, tax or legal advisors and read the relevant
offering documents for further details including the risk factors in
order to ensure that they fully understand the risks associated with the
investment products.
Securities Trading
It is as likely that losses will be incurred rather than profits made as a result of buying and selling securities.
Securities Margin Trading
The risk of loss in financing a transaction by deposit of collateral is
significant. Customers may sustain losses in excess of their cash and
any other assets deposited as collateral with the Bank. Market
conditions may make it impossible to execute contingent orders, such as
"stop-loss" or "stop-limit" orders. Customers may be called upon at
short notice to make additional margin deposits or interest payments. If
the required margin deposits or interest payments are not made within
the prescribed time, customers’ collateral may be liquidated without
their consents. Moreover, customers will remain liable for any resulting
deficit in their accounts and interests charged on their accounts.
Customers should therefore carefully consider whether such a financing
arrangement is suitable in light of their own financial positions and
investment objectives.
Mutual Fund Investment
The past performance of a mutual fund is not a guide to its future
performance and yields are not guaranteed. Customers could lose some or
all of the principal amount invested. Funds are not obligations of, or
guaranteed by, the Bank or any of its affiliates. The Bank will normally
be paid a commission/rebate by the fund manager.
Bond Trading
Bond trading involves liquidity risk and interest rate risk. There is no
100% guarantee of positive return but loss may be incurred. There is a
risk that the bond issuer fails to promptly pay the client the interest
or principal if a credit event or default occurs on the bond/certificate
of deposit issuer. Investing in emerging markets bonds involves special
consideration and higher risks, such as greater price volatility, less
developed regulatory and legal framework, economic, social and political
instability, etc.
Investments in high-yield bonds are additionally subject to higher
credit risk and vulnerability to economic cycles. A fund investing
primarily in high-yield bonds is further subject to capital growth risk,
dividend distributions and other relating risks. The net asset value of
such fund may decline or be negatively affected if there is a default
of any of the high yield bonds that it invests in or if interest rates
change.
Currency Switching
Currency exchange rates are affected by a wide range of factors,
including, among others, 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.
RMB Currency Risk
RMB is currently not freely convertible and is subject to exchange
controls and restrictions (which are subject to changes from time to
time without notice). You should consider and understand the possible
impact on your liquidity of RMB funds in advance. The fluctuation in the
exchange rate of RMB may result in losses in the event that you convert
RMB into other currencies. Onshore RMB and offshore RMB are traded in
different and separate markets operating under different regulations and
independent liquidity pool with different exchange rates. Their
exchange rate movements may deviate significantly from each other.
Interest Rate Risk
If the client’s investments are interest rate-linked (such as bonds),
the value of the investment can fall when interest rates rise. There is
an inverse relationship between bond prices and bond yield, which means
as bond prices go down, the yields go up (and vice versa). The price of a
bond carries an interest rate risk because if interest rates rise,
outstanding bonds will not remain competitive unless their yields and
prices are adjusted to reflect the rise.
Structured Equity-linked Products
Investment in structured equity-linked products involves substantial
risks including, among others, market risks, liquidity risks, risks
relating to changes in market conditions, counterparty risks, and the
risks that the issuer(s) will be unable to satisfy its obligations under
the structured equity-linked products. Customers should recognize that
their structured equity-linked products may mature worthless. While the
maximum return on a structured equity-linked product is usually limited
to a predetermined amount of cash, an investor stands to potentially
lose up to the entire investment amount if the underlying stock price
moves substantially against the investor’s view.
FX Linked Deposit - High Yield Deposit
FX Linked Deposit - High Yield Deposit is an unlisted investment product
and subject to the credit and insolvency risk of the Bank. Its return
is limited to the interest payable, which will be dependent on movements
in some linked exchange rate. Exchange rates are affected by a wide
range of factors, including, among others, international finance,
economics, politics, central banks and other bodies intervention and
natural events, and may rise or fall rapidly. Whilst the possible return
may be higher than conventional time deposits, it is normally
associated with higher risks. When the fluctuation of the linked
exchange rates differs from what the customer expected, the customer may
have to bear the loss. While some FX Linked Deposit - High Yield
Deposit types are principal-protected conditionally, others are not
principal-protected. The FX Linked Deposit - High Yield Deposit is not
the same as investing in its linked currency. It is not protected by the
Investor Compensation Fund. If the FX Linked Deposit - High Yield
Deposit is approved by the Bank to be withdrawn before its maturity, the
customer may also need to bear the costs involved which may reduce the
return and the principal amount of the FX Linked Deposit - High Yield
Deposit he may get back. There is no secondary market for the FX Linked
Deposit - High Yield Deposit and it is not collateralized. The Bank can
early terminate the FX Linked Deposit - High Yield Deposit.
Online Investment Trading Services
Due to unpredictable network traffic congestion and other reasons, the
Internet and other electronic media may not be reliable media of
communication and transactions conducted over the Internet and via other
electronic media are subject to: (i) possible failure or delay in the
transmission and receipt of instructions for any or all transactions in
investment products or other information, and (ii) possible failure or
delay of execution or execution at prices different from those
prevailing at the time when your instructions were given. There are
risks associated with the online investment trading system, including
the failure of hardware and/or software, and the result of any such
system failure may be that your orders are either not executed according
to your instructions or are not executed at all. There are risks of
interruption, distortion, omission, blackout or interception during the
transmission of instructions for any or all transactions in investment
products, as well as of any misunderstanding or errors in communication.
Insurance
Customers should read the sales documents, including product brochure,
benefit illustration (if applicable) and policy documents and provisions
issued by relevant insurance company to understand the details of the
insurance plan (including but not limited to detailed terms, conditions,
coverage, exclusions, fees and product risks) and consider whether the
insurance product meets their personal needs before application.
Policyholders are subject to the credit risk of relevant insurance
company.
For life insurance product, an insurance plan may comprise a savings
element. Part of the premium will be paid for the insurance and related
costs. If a customer is not completely satisfied with his/her life
insurance policy, the customer has a right to cancel it within the
cooling off period and obtain a refund of relevant premium and levy
paid. To exercise such right, a notice of cancellation signed by the
customer must be received by relevant insurance company’s Hong Kong Main
Office within the cooling off period (i.e. within 21 calendar days
immediately following either the day of the delivery of the policy or
delivery of a Cooling-off Notice (stating the availability of the policy
and expiry date of the cooling off period) to the customer or the
customer’s nominated representative, whichever is the earlier). After
the cooling off period is expired, if a customer cancels the policy
before maturity, the surrender value may be less than the total premium
the customer has paid.
Reports / Analysis / Statistics / Market Information
The information contained in the reports, analysis, statistics and
market information has been obtained from sources believed to be
reliable and its accuracy and completeness is not guaranteed. No
representation or warranty, express or implied, is made as to the
fairness, accuracy, completeness or correctness of the information and
opinions contained herein, and the Bank has no obligation to update or
correct any information herein. The views and other information provided
are subject to change without notice. Any opinions, projections or
forecasts in the reports, analysis, statistics and market information
are, unless otherwise stated, those of the author and do not represent
the views of the issuer or any other person. The reports, analysis,
statistics and market information do not constitute or contain
investment advice. The reports, analysis, statistics and market
information are issued without regard to the specific investment
objectives, financial situation or particular needs of any specific
recipient. The Bank will not be liable for any loss or damage arising
from any reliance on any statement, advice or opinion made in the
reports, analysis, statistics and market information for any situations.
Disclaimer
The Bank does not have any authority whatsoever to make any
representation or warranty on behalf of the issuer(s). All the materials
(including but not limited to reports, analysis, statistics and market
information) contained in this document are provided for information
purposes only and are not an offer or solicitation for the purchase or
sale of any financial instrument. Any decision to purchase or subscribe
for securities or investment products in any offering must be based
solely on the information in the prospectus or other offering document
issued in connection with such offering, and not on the materials
provided in this document. The materials provided in this document are
not intended to provide any professional advice and should not be relied
upon in that regards. Redistribution and reproduction in whole or in
part of this document by any means or in whatever form is strictly
prohibited. This document is not intended for distribution to, or use
by, any person or entity in any jurisdiction or country where such
distribution would be contrary to law or regulation. The Bank may have a
position in or be otherwise interested in securities or investment
products mentioned in the reports contained on the document.
This promotion material does not constitute advice to buy or sell, or an
offer with respect to any investment or insurance products. Any offer,
invitation or recommendation to any customers to enter into any
investment transaction does not constitute any prediction or likely
future movements in prices of any investment products. This promotion
material and the FX linked deposits abovementioned are issued by China
Construction Bank (Asia) Corporation Limited which is a licensed bank
regulated by the Hong Kong Monetary Authority, an approved insurance
agent under the Insurance Ordinance (Chapter 41, Laws of Hong Kong) and a
Registered Institution (CE No. AAC155) under the Securities and Futures
Ordinance to carry on Type 1 (Dealing in Securities) and Type 4
(Advising on Securities) Regulated Activities. This promotion material
has not been reviewed by any regulatory authorities in Hong Kong.
China Construction Bank (Asia) Corporation Limited (Insurance
Intermediary License No: FA3132) (“the Bank”) is the appointed insurance
agency of AIA International Limited (incorporated in Bermuda with
limited liability) ("AIA"), FWD Life Insurance Company (Bermuda) Limited
(incorporated in Bermuda with limited liability) ("FWD Life"), QBE
Hongkong & Shanghai Insurance Limited (“QBE Hong Kong”) and China
Taiping Insurance (HK) Company Limited (“CTPI(HK)”), to distribute life
and general insurance products in the Hong Kong Special Administrative
Region. Relevant life and general insurance products are the products of
the insurance companies but not the Bank. The above life insurance
products are issued and underwritten by AIA or FWD Life. AIA and FWD
Life are authorized and regulated by the Insurance Authority (“IA”) to
carry on long term insurance business in the Hong Kong Special
Administrative Region; the above general insurance products are
underwritten by QBE Hong Kong or CTPI(HK). QBE Hong Kong and CTPI(HK)
are authorized and regulated by the IA to carry on general insurance
business in the Hong Kong Special Administrative Region. Please refer to
the sales documents, including product brochure, benefit illustration
(if applicable) and policy documents and provisions issued by relevant
insurance companies for details (including but not limited to insured
items and coverage, detailed terms, key risks, conditions, exclusions,
important notes, policy costs and fees) of the life or general insurance
products. AIA, FWD Life, QBE Hong Kong and CTPI(HK) reserve the right
to decide at each of their sole discretion to accept or decline any
application for life or general insurance product according to the
information provided by the proposed Insured (if applicable) and the
customer at the time of application. In respect of an eligible dispute
(as defined in the Terms of Reference for the Financial Dispute
Resolution Centre in relation to the Financial Dispute Resolution
Scheme) arising between the Bank and the customer out of the selling
process or processing of the related transaction, the Bank is required
to enter into a Financial Dispute Resolution Scheme process with the
customer; however, any dispute over the contractual terms of the life or
general insurance product should be resolved between the insurance
company and the customer directly. Information on this promotion
material is intended to be distributed in the Hong Kong Special
Administrative Region (“Hong Kong”) for reference only, and shall not be
construed as an offer to sell or a solicitation of an offer or
recommendation to purchase or sale or provision of any insurance product
in or outside Hong Kong.
Pursuant to the Insurance (Levy) Regulation (Cap. 41I) and the Insurance
(Levy) Order (Cap. 41J) under the Insurance Ordinance (Cap. 41), the IA
collects levies for insurance premiums from policyholders with effect
from 1 January 2018. For further details, please visit the website of
IA. For the latest information about the IA, please visit  . For the latest information about The Insurance Complaints Bureau, please visit  .
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