Bonds/Certificates of Deposit

Purchasing Bonds and Certificates of Deposits (CDs) in different markets, currencies and industries can help diversify your portfolio as well as deliver stable coupons as streams of income.

Special Offer

  • Purchase bonds/CDs to waive redemption fee at maturity and safe custody fee

 

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  • A wide selection of different Bonds/CDs with a minimum investment amount of HKD10,000, allow you to earn a stable income before maturity.

  • Capture investment opportunities, get real-time bond prices and place orders via our online trading platform.

  • Tenors from 3 months to over 10 years, with a return rate of up to 3.71%1.

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Remarks:

1. Yield information of an individual bond / certificate of deposit as of 29 November 2017.

Important Risk Warning

  • Bond is an investment product. The investment decision is yours but you should not invest in this 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.
  • Bond and Certificates of Deposit (CD) are NOT equivalent to a time deposit.
  • 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 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 coupon received.

Additional risks are disclosed in the section of "Risk Disclosure" below. Please refer to it for details.
CD is not a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.

Risk Disclosure

Bonds and Certificates of Deposit ("CDs") Risk Disclosure

  • There are risks involved in buying bond/CD. Before applying for any of bond/CD, you should consider whether bond/CD is suitable for you in light of your own financial circumstances and objectives. If you are in any doubt, get independent professional advice.
  • Bonds/CDs are mainly medium to long term fixed income products, not for short term speculation. You should be prepared to hold your funds in bonds/CDs for the full tenor; you could lose part or all of your principal if you choose to sell your 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 the bonds/CDs’ prices 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, HSBC may repurchase them based on the prevailing market price under normal market circumstances, but the buying price may differ from the original selling price due to changes in market conditions.
  • There may be exchange rate risks if you choose to convert payments made on the bond/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 bonds/CDs’ holders.
  • If bonds/CD are early redeemed, you may not be able to enjoy the same rates of return when you use the funds to purchase other products.
  • CD is NOT equivalent to a time deposit. It is NOT protected under the Hong Kong Deposit Protection Scheme. Do not purchase the CD unless you fully understand and are willing to assume the risks associated with it.
  • RMB currency risk - 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 the RMB products when you convert RMB into your home currency.
  • Interest rate risk - The value of RMB denominated Certificates of Deposit are subject to interest rate fluctuations, which may adversely affect the return and performance of the RMB products.
  • Liquidity risk - The secondary market for the RMB denominated Certificates of Deposit may not provide significant liquidity or trade at prices based on the prevailing market conditions, which may cause the holders to suffer significant loss especially where their prices have large bid/offer spreads, and may not be in line with the expectations of the holders.
  • Limited availability of underlying investments denominated in RMB - The RMB denominated Certificates of Deposit may not have access to invest directly in Mainland China, which means that its choice of underlying investments denominated in RMB outside Mainland China may be limited. As such, there may be adverse effects on the return and performance of RMB denominated Certificates of Deposit.
  • Possibility of not receiving RMB upon redemption - The RMB denominated Certificates of Deposit may have a significant portion of non-RMB denominated underlying investments. There is a possibility that you will not receive the full amount in RMB upon redemption. This may be the case if the issuer is not able to obtain sufficient amount of RMB in a timely manner due to the exchange controls and restrictions applicable to the currency.

Renminbi related products Risk Disclosure

  • There may be exchange rate risks if you choose to convert RMB payments made on the bonds/CD to your home currency.
  • RMB debt instruments are subject to interest rate fluctuations, which may adversely affect the return and performance of the RMB products.
  • 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.
  • You could lose part or all of your principal if you choose to sell your RMB bonds prior to maturity.

The information contained in this material has not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.

Investment involves risk. The price of the investment products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling 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.

Making available to you any advertisements, marketing or promotional materials, market information or other information relating to a product or service shall not, by itself, constitute solicitation of the sale or recommendation of any product or service. If you wish to receive solicitation or recommendation from us, please contact us and, where relevant, go through our suitability assessment before transacting.

The information in this material does not constitute a solicitation or recommendation for making any deposit or an offer for the purchase or sale or investment in any products.