Important Risk Warning

• Some of the investment products are structured products which may involve derivatives. The investment decision is yours but you should not invest 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.
• The price of securities/structured products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling securities/structured products.
• In the worst case scenario, the value of the Unit Trusts (UT) may be worth substantially less than the original amount you have invested (and in an extreme case could be worth nothing).
• Margin FX trading is a leveraged foreign exchange investment product which involves a high degree of risk and is only suitable for customers who are of adventurous or speculative risk attitude.
• Investors should not make investment decision based on this material alone.
• Investment involves risk and past performance is not indicative of future performance. Please refer to the offering documents for further details, including fees and charges and risk factors.
• Issuer's Risk – you rely on the issuer's creditworthiness. Bonds/Certificates of Deposit (CDs)/structured products are subject to both the actual and perceived measures of creditworthiness of the issuer. There is no assurance of protection against a default by the issuer in respect of the repayment obligations. In the worst case scenario (eg insolvency of the issuer), you might not be able to recover the principal and interest/coupon, if applicable, and the potential maximum loss could be 100% of invested amount and no interest/coupon received.
• Currency conversion risk – the value of your foreign currency and RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your foreign currency and RMB deposit to other currencies at an exchange rate that is less favourable than the exchange rate in which you made your original conversion to that foreign currency and RMB, you may suffer loss in principal.
• RMB denominated products are subject to liquidity risk as there may be no regular trading and active secondary market for RMB Income Instruments. The bid and offer spread of the price of RMB Income Instruments may be large, so investors may incur significant trading and realisation costs and may suffer losses accordingly.

Risk Disclosure

Bonds and Certificate of Deposits (CDs) Risk Disclosure

• Bonds and CDs are mainly for medium to long term investment, not for short term speculation. You should be prepared to invest your funds in bonds/CDs for the full investment tenor; you could lose part or all of your investment if you choose to sell bonds/CDs prior to maturity.
• It is the issuer to pay interest and repay principal of bonds/CDs. If the issuer defaults, the holder of bonds/CDs may not be able to receive back the interest and principal. The holder of bonds/CDs bears the credit risk of the issuer and has no recourse to HSBC unless HSBC is the issuer itself.
• Indicative price of bonds/CDs are available and bond/CDs price do fluctuate when market changes. Factors affecting market price of bonds/CDs include, and are not limited to, fluctuations in Interest Rates, Credit Spreads, and Liquidity Premiums. The fluctuation in yield generally has a greater effect on prices of longer tenor bonds/CDs. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling bonds/CDs.
• If you wish to sell Bonds/CDs, the Bank may repurchase it based on the prevailing market price under normal market circumstances, but the selling price may differ from the original buying price due to changes in market conditions.
• There may be exchange rate risks if you choose to convert payments made on bonds/CDs to your home currency.
• The secondary market for bonds/CDs may not provide significant liquidity or may trade at prices based on the prevailing market conditions and may not be in line with the expectations of holders of bonds/CDs.
• If bonds/CDs are early redeemed, you may not be able to enjoy the same rates of return when you re-invest the funds in other investments.

Renminbi related products Risk Disclosure

• There may be exchange rate risks if you choose to convert payments made on securities/bonds/CDs to your home currency.
• RMB products may suffer significant losses in liquidating the underlying investments if such investments do not have an active secondary market and their prices have large bid/offer spreads.
• In general, RMB equity products are exposed to the usual kind of default risks that might be associated with equity products denominated in other currencies.
• CPI (if denominated in RMB) will be denominated and settled in RMB deliverable in Hong Kong, which is different from that of RMB deliverable in Mainland China.

China A Shares Risk Disclosure

• Investment in China A Shares through Shanghai-Hong Kong Stock Connect involves risks. You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial resources and relevant circumstances. The price of securities may move up or down. Losses may be incurred and profits may be made as a result of buying and selling securities.

Foreign Exchange Risk Disclosure

• Currency conversion risk – the value of your foreign currency and RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your foreign currency and RMB deposit to other currencies at an exchange rate that is less favourable than the exchange rate in which you made your original conversion to foreign currency and RMB deposit, you may suffer loss in principal.

Margin FX Risk Disclosure

• Risk of trading in leveraged foreign exchange contracts – The risk of loss in leveraged foreign exchange trading can be substantial. You may sustain losses in excess of your initial margin funds. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether such trading is suitable in light of your own financial position and investment objectives.

DPS and CPI Risk Disclosure

• Deposit Plus (DPS) and Structured Investment Deposit are not available for persons who are US citizen / with US nationality, are US resident or US tax payer, or have a US address (eg primary mailing, residence or business address in the US).
• Credit risk of the Bank – DPS and Capital Protected Investment Deposit (CPI) are not secured by any collateral. When you invest in these products, you will be relying on the Bank's creditworthiness. If the Bank becomes insolvent or defaults on its obligations under these products, 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.
• Maximum potential loss – DPS 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.
• Market risk – The return of CPI will depend upon the exchange rates of currency pair against trigger rate at the fixing time on the fixing date. Movements in exchange rates can be unpredictable, sudden and drastic, and affected by complex political and economic factors. You must be prepared to take the risk of earning the lower payout/no return (if exchange rate performs against expectation) on the money invested.
• Risk of early termination by the Bank – The Bank shall have the discretion to uplift a Deposit or any part thereof prior to the Maturity Date (subject to the deduction of such break costs or the addition of such proportion of the return or redemption amount, which may result in a figure less than the original principal amount of the Deposit) if it determines, in its sole discretion, that this is necessary or appropriate to protect any right of the Bank to combine accounts or set-off, or any security interest, or to protect the customer's interests.
• Risks relating to RMB – You should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government's control (for example, the PRC government regulates conversion between RMB and foreign currencies), which may adversely affect your return under this product. In case you receive RMB as Linked Currency at maturity and you choose to convert your maturity proceed to other currencies, you may suffer loss in principal. This product will be denominated (if Deposit Currency being RMB) and settled (when receive RMB at maturity) in RMB deliverable in Hong Kong, which is different from that of RMB deliverable in Mainland China.

Equity Linked Investments Risk Disclosure

The following risks shoud be read together with the other risks contained in the “Risk Warnings section in the relevant offering documents of the ELIs

• You should note that this material does NOT form part of the offering documents of our ELIs. You should read all the offering documents of our ELIs (including the programme memorandum, the financial disclosure document, the relevant product booklet and the indicative term sheet and any addendum to any of such documents) before deciding whether to invest in our ELIs. If you have doubt on the content of this material, you should seek independent professional advice.
• Our ELIs are not listed on any stock exchange. There may not be any active or liquid secondary market.
• Our ELIs are not principal protected: you could lose all of your investment.
• Our ELIs constitute general, unsecured and unsubordinated contractual obligations of HSBC as issuer and of no other person (including the ultimate holding company of our group, HSBC Holdings plc). When you buy our ELIs, you will relying on HSBC's creditworthiness. If HSBC becomes insolvent or defaults on its obligations under the ELIs, in the worst case scenario, you could lose all of your investment.
• Investing in ELIs is not the same as investing in their reference assets. The potential return in relation to an ELI will depend upon the performance of the reference asset on the relevant valuation date. Changes in the market price of the reference asset may not lead to a corresponding change in the market value of, or you potential payout under, the ELIs.
• You may, at settlement, receive physical delivery of reference asset(s).
• Our ELIs may be terminated early by us according to the terms as set out in offering documents our ELIs.
• Our ELIs are not secured on any of our assets or any collateral.
• Our ELIs are structured investment products which are embedded with derivatives.
• Our ELIs are not covered by the Investor Compensation Fund.
• Investment returns (if any) not denominated in home currency are exposed to exchange rate fluctuations. Rates of exchange may cause the value of investments to go up or down.

Unit Trusts Risk Disclosure

• The information contained in this material relating to the Funds and Unit Trusts Offer does not constitute an offer for the purchase or sale of any investment products.
• You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial resources and circumstances.
• The information contained in this material and the content relating to the Funds and Unit Trusts Offer have not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.
• Funds which are invested in certain markets and companies (e.g. emerging, commodity markets and smaller companies etc) may also involve a higher degree of risk and are usually more sensitive to price movements.
• Credit Risk/Interest Rate Risk – a fund that invests in fixed income securities may fall in value if interest rates change, and is subject to the credit risk that issuers may not make payments on such securities. Price of the fund may have a high volatility due to investment in financial derivative instruments and may involve a greater degree of risk than in the case with conventional securities.
• Counterparty Risk – a fund will be exposed to credit risk on the counterparties with which it trades in relation to financial derivative instrument contracts that are not traded on a recognised exchange. Such instruments are not afforded the same protections as may apply to participants trading financial derivative instruments on organised exchanges, such as the performance guarantee of an exchange clearing house. A fund will be subject to the possibility of insolvency, bankruptcy or default of a counter party.

Risks associated with funds recognised under Mutual Recognition of Fund (MRF)

• Investment in funds under MRF involves additional risks such as the specific risks relating to the MRF arrangement and the differences in market practices and investor expectation in the two markets. You should refer to the offering document of respective fund(s) for the specific risk disclosures.
• Quota restrictions: MRF is subject to an overall quota restriction. Subscription to funds may be suspended at any time if the quota has been exceeded.
• Failure to meet MRF eligibility requirements: If a MRF recognised China fund ceases to meet any of the eligibility requirements under MRF, it may not be allowed to accept new subscriptions.
• Mainland tax risk: The tax arrangements on the mainland relating to investment in a MRF recognised China fund are currently unclear. Investors may face uncertainties regarding their mainland tax liabilities.
• Different market practices: Market practices in Mainland China and Hong Kong may differ. In addition, certain operational arrangements for MRF recognised China funds may also be different from those of other public funds offered in Hong Kong.
• Concentration risk/Mainland market risk: The fund invests primarily in securities related to the mainland market and may be subject to additional concentration risks. Compared to investment in other markets, investing in Mainland China may give rise to different risks including political, policy, tax, economic, foreign exchange, legal, regulatory and liquidity risks.
• RMB currency and conversion risk: RMB is currently not freely convertible and is subject to exchange controls and restrictions. Non-RMB based investors are exposed to foreign exchange risks and there is no guarantee that the value of RMB against the investors' base currencies (for example HKD) will not depreciate. Investors may not receive RMB upon redemption of investment and/or dividend payment or such payment may be delayed due to exchange controls and restrictions applicable to RMB.
• High valuation risk: The stocks listed on the Mainland China stock exchanges are generally considered overvalued and may have a high price-earnings ratio; and such high valuation may not be sustainable.
• Mainland A-Shares risk: The fund's investment in equity securities is subject to general market risks, volatility risks, regulatory risks and risk associated with small-capitalisation/mid-capitalised companies.
• Mainland debt securities risk: The fund's investment in Mainland debt securities may be subject to volatility and liquidity risks, counterparty risk, interest rate risk, downgrading risk, credit rating agency risk, risk associated with urban investment bonds, risk associated with asset-backed securities, and risk associated with debt securities which are rated BB+ or below by a Mainland credit rating agency or unrated.
• Risks associated with unlisted index funds: The fund may be subject to passive investment risk, tracking error risk, and index-related risk.