FX Linked Deposit - Principal Protected Deposit
Enjoy Higher Potential Interest Return With 100% Principal Protection
! Please read the Important Notes for FX Linked Deposit - Principal Protected Deposit.
Important Notes:
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FX Linked Deposit - Principal Protected Deposit is a structured product involving derivatives and you should exercise caution in relation to this product. The investment decision is yours but you should not invest in FX Linked Deposit - Principal Protected Deposit 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. You should read and understand all relevant Terms and Conditions and Risk Disclosure Statements before making any investment decision.
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FX Linked Deposit - Principal Protected Deposit is principal protected conditionally and is subject to the credit risk of the Bank. It is not equivalent to or an alternative of time deposit. It is not a protected deposit, and is not protected by the Deposit Protection Scheme in Hong Kong.
FX Linked Deposit - Principal Protected Deposit provides you higher potential return with 100% principal protection. You will receive the principal and interest in deposit currency at maturity with no currency conversion involved. It is a relatively low risk investment tool that balances your risk and return.
Product Features
100% Principal Protection at Maturity1
Higher Potential Return
No Currency Conversion
A Wide Variety of Currencies and Tenors for Selection
Subscribe via mobile and online banking
No Fees or Charges
Example
If a customer subscribes below Principal Protected Deposit with HK$100,000 on August 7, 2024*:
Deposit Product: European HKD Bearish- Deposit Currency: HKD
- Linked Currency: AUD / HKD
- Deposit Period: 3 months (95 days)
- Fixing Date: November 8, 2024
- Initial Spot Rate: 5.0995
- Trigger Rate: 5.2017
- High Interest Rate (p.a.): 3.95%
- Low Interest Rate (p.a.): 3.85%
On Fixing Date
On Maturity Date, customer can receive
On Fixing Date
Scenario 1
AUD / HKD moves along with expectation
(Trades at or above 5.2017)
AUD / HKD moves along with expectation
(Trades at or above 5.2017)
On Maturity Date, customer can receive
100% Principal
HK$100,000
+
Interest Return in
High Interest Rate (3.95% p.a.) Approximately HK$1,028
Total HK$101,028
On Fixing Date
Scenario 2
AUD / HKD does not move along with expectation
(Trades below 5.2017)
AUD / HKD does not move along with expectation
(Trades below 5.2017)
On Maturity Date, customer can receive
100% Principal
HK$100,000
+
Interest Return in
Low Interest Rate (3.85% p.a.) Approximately HK$1,002
Total HK$101,002
Regardless of scenario 1 or 2, on the maturity date, the customer will:
Receive the principal and interest in HKD with no currency conversion involved at all
* The above products and annual interest rates are only applicable on August 7, 2024 and terms and conditions apply. They are subject to change with prevailing market conditions and are for reference only.
Video
(Video in Chinese Only)
Deposit Types
- Swap Deposit
- European Bullish
- European Bearish
- European Step-up Bullish
- European Step-up Bearish
- American Bullish
- American Bearish
- Double No Touch
The Swap Deposit is a 100% Principal Protected FX Linked Deposit that consists of a FX Swap Transaction (which is formed by the combination of a FX Spot Transaction and a FX Forward Transaction) and a Time Deposit (in the Linked Currency). Customers can choose Swap Deposit if they wish to lock in a high interest return at maturity regardless of exchange rate movement.
Customers will retrieve the principal amount and receive the return of the Swap Deposit on the maturity date if there is no Currency Event1 Designation by the Bank. Returns from Swap Deposits are equivalent to the sum of (1) the return from the embedded FX Swap Transaction (at maturity date) and (2) the return from the embedded time deposit (in the Linked Currency).
To learn more about the product, please read the Important Facts^.
Customers will retrieve the principal amount and receive the return of the Swap Deposit on the maturity date if there is no Currency Event1 Designation by the Bank. Returns from Swap Deposits are equivalent to the sum of (1) the return from the embedded FX Swap Transaction (at maturity date) and (2) the return from the embedded time deposit (in the Linked Currency).
To learn more about the product, please read the Important Facts^.
European Bullish is a 100% Principal Protected FX Linked Deposit that consists of a Time Deposit (in the Deposit Currency) and purchase of a European Style (Digital) Option. Customers can choose Principal Protected Deposit (European Bullish) if they anticipate the Deposit Currency will appreciate against the Linked Currency on the Fixing Date.
On the Fixing Date, if the Deposit Currency appreciates against the Linked Currency and the Fixing Exchange Rate equals to or appreciates against the Trigger Rate, customers will retrieve the principal amount and receive a high interest return on the Maturity Date. Otherwise, customers will retrieve the principal amount and receive a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
On the Fixing Date, if the Deposit Currency appreciates against the Linked Currency and the Fixing Exchange Rate equals to or appreciates against the Trigger Rate, customers will retrieve the principal amount and receive a high interest return on the Maturity Date. Otherwise, customers will retrieve the principal amount and receive a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
European Bearish is a 100% Principal Protected FX Linked Deposit that consists of a Time Deposit (in the Deposit Currency) and the purchase of a European Style (Digital) Option. Customers can choose Principal Protected Deposit (European Bearish) if they anticipate the Deposit Currency will depreciate against the Linked Currency on the Fixing Date.
On the Fixing Date, if the Deposit Currency depreciates against the Linked Currency and the Fixing Exchange Rate equals to or depreciates against the Trigger Rate, customers will retrieve the principal amount and receive a high interest return on the Maturity Date. Otherwise, customers will retrieve the principal amount and receive a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
On the Fixing Date, if the Deposit Currency depreciates against the Linked Currency and the Fixing Exchange Rate equals to or depreciates against the Trigger Rate, customers will retrieve the principal amount and receive a high interest return on the Maturity Date. Otherwise, customers will retrieve the principal amount and receive a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
European Step-up Bullish is a 100% Principal Protected FX Linked Deposit that consists of a Time Deposit (in the Deposit Currency) and purchase of European Style (Digital) Option(s). Customers can choose Principal Protected Deposit (European Step-up Bullish) if they anticipate the Deposit Currency will appreciate against the Linked Currency on the Fixing Date.
On the Fixing Date, if the Deposit Currency appreciates against the Linked Currency, customers will retrieve the principal amount and receive a Step-up interest return on the Maturity Date when the Fixing Exchange Rate equals to or appreciates against the Step-up Trigger Rate; customers will retrieve the principal amount and receive a high interest return on the Maturity Date when the Fixing Exchange Rate equals to the Trigger Rate or in between the Trigger Rate and the Step-up Trigger Rate; otherwise, customers will retrieve the principal amount and receive a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
On the Fixing Date, if the Deposit Currency appreciates against the Linked Currency, customers will retrieve the principal amount and receive a Step-up interest return on the Maturity Date when the Fixing Exchange Rate equals to or appreciates against the Step-up Trigger Rate; customers will retrieve the principal amount and receive a high interest return on the Maturity Date when the Fixing Exchange Rate equals to the Trigger Rate or in between the Trigger Rate and the Step-up Trigger Rate; otherwise, customers will retrieve the principal amount and receive a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
European Step-up Bearish is a 100% Principal Protected FX Linked Deposit that consists of a Time Deposit (in the Deposit Currency) and purchase of European Style (Digital) Option(s). Customers can choose Principal Protected Deposit (European Step-up Bearish) if they anticipate the Deposit Currency will depreciate against the Linked Currency on the Fixing Date.
On the Fixing Date, if the Deposit Currency depreciates against the Linked Currency, customers will retrieve the principal amount and receive a Step-up interest return on the Maturity Date when the Fixing Exchange Rate equals to or depreciates against the Step-up Trigger Rate; customers will retrieve the principal amount and receive a high interest return on the Maturity Date when the Fixing Exchange Rate equals to the Trigger Rate or in between the Trigger Rate and the Step-up Trigger Rate; otherwise, customers will get back the principal amount plus a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
On the Fixing Date, if the Deposit Currency depreciates against the Linked Currency, customers will retrieve the principal amount and receive a Step-up interest return on the Maturity Date when the Fixing Exchange Rate equals to or depreciates against the Step-up Trigger Rate; customers will retrieve the principal amount and receive a high interest return on the Maturity Date when the Fixing Exchange Rate equals to the Trigger Rate or in between the Trigger Rate and the Step-up Trigger Rate; otherwise, customers will get back the principal amount plus a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
American Bullish is a 100% Principal Protected FX Linked Deposit that consists of a Time Deposit (in the Deposit Currency) and purchase of an American Style (Digital) Option. Customers can choose Principal Protected Deposit (American Bullish) if they anticipate the Deposit Currency will appreciate against the Linked Currency during the Observation Period.
During the Observation Period, if the Deposit Currency appreciates against the Linked Currency and the Spot Rate has ever touched the Trigger Rate, customers will retrieve the principal amount and receive a high interest return on the Maturity Date. Otherwise, customers will retrieve the principal amount and receive a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
During the Observation Period, if the Deposit Currency appreciates against the Linked Currency and the Spot Rate has ever touched the Trigger Rate, customers will retrieve the principal amount and receive a high interest return on the Maturity Date. Otherwise, customers will retrieve the principal amount and receive a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
American Bearish is a 100% Principal Protected FX Linked Deposit that consists of a Time Deposit (in the Deposit Currency) and purchase of an American Style (Digital) Option. Customers can choose Principal Protected Deposit (American Bearish) if they anticipate the Deposit Currency will depreciate against the Linked Currency during the Observation Period.
During the Observation Period, if the Deposit Currency depreciates against the Linked Currency and the Spot Rate has ever touched the Trigger Rate, customers will retrieve the principal amount and receive a high interest return on the Maturity Date. Otherwise, customers will retrieve the principal amount and receive a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
During the Observation Period, if the Deposit Currency depreciates against the Linked Currency and the Spot Rate has ever touched the Trigger Rate, customers will retrieve the principal amount and receive a high interest return on the Maturity Date. Otherwise, customers will retrieve the principal amount and receive a low interest return on the Maturity Date.
To learn more about the product, please read the Important Facts^.
Double No Touch is a 100% Principal Protected FX Linked Deposit that consists of a Time Deposit (in the deposit currency) and purchase of a Double No Touch Option. Customers can choose Principal Protected Deposit (Double No Touch) if they anticipate the exchange rate of the underlying currency pair will move within the stipulated range during the Observation Period.
During the entire Observation period, if the spot exchange rate of the currency pair moves within the stipulated range, customers will retrieve the principal amount and receive a high interest return on the maturity date. Otherwise, customers will retrieve the principal amount and receive a low interest return on the maturity date.
To learn more about the product, please read the Important Facts^.
During the entire Observation period, if the spot exchange rate of the currency pair moves within the stipulated range, customers will retrieve the principal amount and receive a high interest return on the maturity date. Otherwise, customers will retrieve the principal amount and receive a low interest return on the maturity date.
To learn more about the product, please read the Important Facts^.
Click here to view the latest Principal Protected Deposit available for subscription Service Demo
Step 1
Log in Mobile Banking, go to “Wealth” page and click “Open Investment A/C” under “Menu”, then choose “Structured Deposit (FX Linked Deposit)” to start the account opening process.
Step 2
Read the Important Notes and input “ID/Passport No.”, then click “Open Now”.
Step 3
Read and agree with the terms and conditions below, select the “Settlement Account”, read and agree with relevant Agreement and Risk Disclosure Statement, and then click “Next”.
Step 4
Confirm your personal information, and confirm you have received, read and understood the relevant Terms and Conditions and Risk Disclosure Statements, consent to the Bank referring to Customer’s Deposit Account Information, then click “Confirm”.
Step 5
Structured Deposit (FX Linked Deposit) account has been opened successfully, select the communication channels you want to receive marketing information and click "Confirm”.
Step 1
Log in Mobile Banking, go to “Wealth” page and click “FX Linked Deposit” under “Menu”, then choose “Principal Protected Deposit Placement”.
Step 2
Input the “One-Time Password” and click “Confirm”.
Step 3
Review the product details of the Principal Protected Deposits available for application. Click “v” at the bottom of the Principal Protected Deposit that you want to apply for, read the Term Sheet and Important Fact Sheet and then click “Apply”.
Step 4
Review the product details of the Principal Protected Deposit you want to apply for and click “Buy” to start the subscription process.
Step 5
Select the “Structured Deposit (FX Linked Deposit) A/C No.”, input the “Deposit Amount” and select “My investment objective for this deposit”, then read the Risk Disclosures, Disclaimers and all other Important Facts. Click “Continue” after agreeing with the “Customer Declaration”.
Step 6
Conduct “Asset Concentration Assessment” and click “Next” to continue the application process.
Step 7
Confirm the Application Details and click “Buy”.
Step 8
Your Principal Protected Deposit application request has been submitted. You will receive notification through SMS and Email for the application result.
Step 1
Log in Online Banking, select “Investment” and click “Structured Deposit (FX Linked Deposit) Account” under “Open an Investment Account” to start the account opening process.
Step 2
Read the Important Notes and input “ID/Passport No.”, then click “Apply Now”.
Step 3
Read and agree with the terms and condition below, select the “Settlement Account”, read and agree with relevant Agreement and Risk Disclosure Statement, and then click “Next”.
Step 4
Confirm your personal information, and confirm you have received, read and understood the relevant Terms and Conditions and Risk Disclosure Statements, then consent to the Bank referring to Customer’s Deposit Account Information and click “Proceed”.
Step 5
Structured Deposit (FX Linked Deposit) account has been opened successfully.
Step 1
Log in Online Banking, select “Investment” and click “Principal Protected Deposit Placement” under “FX Linked Deposit”.
Step 2
Input the “Security Code” or “One-Time Password” and click “Confirm”.
Step 3
Read the product details of the Principal Protected Deposits available for application. Click and read the Termsheet and Important Fact Sheet of the Principal Protected Deposit that you want to apply for, then click “Apply”.
Step 4
Select the “Structured Deposit (FX Linked Deposit) A/C No.”, input the “Deposit Amount”, conduct “Asset Concentration Assessment” and select “My investment objective for this deposit”, then read and agree with the “Customer Declaration”, then click “Continue”.
Step 5
Confirm the Application Details and click “Continue”.
Step 6
Your Principal Protected Deposit request has been submitted. You will receive notification through SMS and Email for the application result.
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Remarks:
- The principal protection rate for Swap Deposit will depend on whether Currency Event Designation by the bank has occurred during the deposit period. Currency Event refers to the occurrence of any event or existence of any condition (including but not limited to the imposition of exchange controls or monetary measures by a government, with little or no warning) such that the convertibility or transferability of the Deposit Currency and the Linked Currency becomes impossible, illegal or impracticable.
- Low interest return could be zero for certain Principal Protected Deposit. Please refer to the relevant Term Sheet for details.
- 10 currencies include USD, CNH, HKD, AUD, CAD, CHF, EUR, GBP, JPY and NZD.
- Principal Protected Deposit is available for subscription from 10:00 am – 4:15 pm on every business day in Hong Kong (subject to the Bank’s discretion, market disruption events, etc. And the product will not be available during the period of severe weather.)
- You need to have the latest version of Adobe Reader to view the file. The software can be downloaded from http://www.adobe.com. If you wish to obtain a printed copy, please visit our branches or contact your Relationship Managers.
Risk Disclosure of FX Linked Deposit - Principal Protected Deposit (“PPD”)
- Investment involves risks. The prices of investment products fluctuate, sometimes dramatically, and may become valueless. Investors should not invest based on this web page alone. Before making any investment decisions, customers must 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.
- PPD is different from an ordinary time deposit and is not the same as directly buying the relevant currencies. It also involves derivatives risk. Although it is principal protected, it is subject to the credit risk of the Bank and is not collateralized. There is no secondary market for PPD, and early withdrawal is not allowed. You should also pay attention to the relevant market risk and the risk of early termination by the Bank upon occurrence of certain events. Besides, whether or not you will receive the high interest, if the Deposit Currency is not in your home currency, you may suffer a loss due to the currency risk originated by the Deposit Currency’s exchange rate fluctuations, which may offset or even exceed any potential gain. PPD is not covered by the Investor Compensation Fund. The potential return is limited, and the principal amount and the interest will be paid in the Deposit Currency.
- (Only applicable to Swap Deposit) If Currency Event Designation by the Bank (i.e. occurrence of any event or existence of any condition, such as the imposition of exchange controls or monetary measures, such that the convertibility or transferability of the Deposit Currency and the Linked Currency becomes impossible, illegal or impracticable) occurs, the Bank has the right to early terminate the Swap Deposit and will pay the Mandatory Redemption Amount in the Deposit Currency (instead of the Repayment Amount) only to the customer on the Mandatory Redemption Date. The Mandatory Redemption Amount may be substantially less than the Principal Amount and in the worst case, is zero.
- 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.
- 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.
- Deposits cannot generally be cancelled or withdrawn prior to the agreed maturity date without the consent of the Bank unless the terms of a Deposit expressly provide for it. If the Bank does consent to an early withdrawal, it will be a condition of such consent that the amount of any cost or loss suffered by the Bank by reason of early withdrawal is deducted from the Deposit. Such costs and losses may include the cost of unwinding a hedging position taken by the Bank to cover the Deposit, and may result in a lower rate of return than might be expected, or even a negative rate of return.
- PPD is a structured product involving derivatives and you should exercise caution in relation to this product. The investment decision is yours but you should not invest in PPD unless the intermediary who sells it to you has explained to you that PPD is suitable for you having regard to your financial situation, investment experience and investment objectives.
- The Bank will decide whether to issue PPD based on the investment pooling condition.
Disclaimer
This webpage does not constitute advice to buy or sell, or an offer with respect to any investment products. This webpage and the Principal Protected Deposit abovementioned are issued by China Construction Bank (Asia) Corporation Limited, which is a licensed bank regulated by the Hong Kong Monetary Authority. This web page has not been reviewed by any regulatory authorities in Hong Kong and investors are advised to exercise caution in relation to the offer.
