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.
Overview
The Principal Protected Deposit is a FX linked structured deposit product that involves derivatives. You can enjoy higher potential return with 100% principal protection and no currency conversion involved. It is a relatively low risk investment tool that balances your risk and return.
Key Features
- May enjoy higher potential returns compared to conventional time deposits.
- Retrieve 100% of the principal amount upon maturity, regardless of whether the currency pair moves according to your expectation.
- For Swap Deposits: receive interest returns calculated based on High Interest Rates at maturity if no Currency Event1 Designation by the Bank occurs, regardless of your expectation on market movement.
- For other types of Principal Protected Deposits: receive a low interest return2 at maturity even if the exchange rate does not move according to your expectation.
- Choose from a wide variety of currency pairs which are formed by 10 different currencies, including USD, CNH, HKD, AUD, CAD, CHF, EUR, GBP, JPY and NZD.
- The investment tenor can be as short as 1 month and as long as 1 year, to cater your expectations and needs.
- Retrieve the principal and receive interest in deposit currency at maturity.
- Invest without any fees or charges to maximize your returns.
Deposit Types
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 ^.
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 ^.
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 ^.
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 ^.
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 ^.
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 ^.
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 ^.
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 ^.
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Latest Foreign Exchange Information
Remarks:
- 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.
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Risk Disclosure of FX Linked Deposit - Principal Protected Deposit (“PPD”)
- 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.
- Investors should not invest in PPD based on the information provided in this webpage alone. Before making any investment decision, please carefully read all the related offering documents or product terms and seek for independent and professional/financial/tax advice if needed.
- 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.