Renminbi Services

HSBC provides comprehensive RMB investment solutions, to help you expand investment portfolio and capture RMB investment opportunities.

Special Offers

  • $0 brokerage fee upon purchase of Shenzhen A shares1

  • Purchase Bonds/ Certificate of Deposit to waive redemption fee at maturity and safe custody fee

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Comprehensive RMB Investment Solutions and Services

Unit Trusts

  • A wide selection of RMB denominated funds with a minimum subscription amount of RMB10,000 and offer investment diversity with the opportunities to earn dividend.

  • Mutual Recognition of Funds ("MRF") brings you more fund choices to access the Mainland market, which include a wider variety of different sectors and thematic funds.

    Find out more about MRF (6-page PDF 33KB)

Securities

  • Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect allows you to earn potential returns by trading in over 1,000 Shanghai A shares and Shenzhen A shares directly.

  • Allows you to trade in China, Hong Kong and the U.S. stock markets with one integrated account hassle-free.

Bonds/Certificates of Deposit

  • Online trading platform provides a choice of up to 7 different RMB Bonds/CDs2, enables you to earn a stable income before maturity, with a minimum investment amount of RMB10,000.

  • Enjoy waivers on redemption fee at maturity, interest collection fee and safe custody fee.

  • A wide range of tenors from 1 month to 3 years, with a return rate of up to 4.32%3.

Deposit Plus

  • Place RMB Deposit Plus4 through 24-hour online and mobile platforms to capture the opportunities presented by exchange rate fluctuations and enjoy higher potential returns.

Capital Protected Investment Deposits (CPI) – Currency Linked

  • 100% protection of capital5 at maturity and potential periodic coupon payments or higher interest return at maturity according to your bullish or bearish view on RMB.

  • A range of tenors from 3 months up to 24 months.

Equity-Linked Investment

  • In a flat or volatile market, you can capitalise on the prize movement of the reference assets, to enjoy a potential return.

  • You can choose a range of foreign currencies as your investment, such as RMB, USD, AUD, CAD and more.

  • Different choices of investment tenors, with up to 190 underlying assets (including some of the eligible Hong Kong stocks under Shenzhen-Hong Kong Stock Connect) that suit your investment view, risk appetite and return requirement.

Time Deposit

  • Flexible tenors from 1 week to 12 months to earn higher interest return.

RMB Switching Services6

  • Buy or sell RMB automatically when your pre-set target exchange rate and/or frequency criteria (e.g. daily) are met.

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Remarks:

  1. The promotion period for the brokerage fee is from 5 December 2016 to 2 June 2017. Terms and conditions apply (2-page PDF 337KB).
  2. Number of RMB bonds/CDs available on our online trading platform as of 19 January 2017.
  3. Yield information of an individual bond as of 19 January 2017.
  4. Customers can trade Deposit Plus from Monday 6 am to Saturday 5 am except for system maintenance periods from 9-9.30 pm and 5.20-5.35 am Monday to Friday and public holidays in Hong Kong. Investment in Deposit Plus may suffer loss if the deposit is converted to the linked currency.
  5. This product is designed to return your original capital at maturity, however, if the Bank becomes insolvent or default on its obligations under this product, you could suffer a total loss of your deposit amount, please refer to "Credit risk of the Bank" in the offering document of Capital Protected Investment Deposit for details.
  6. ForEx Switching Service/RMB Switching Service is available only to HSBC Premier, HSBC Advance, Personal Integrated Account customers, Renminbi Savings Account, HK Dollar Statement Savings Account and CombiNations Statement Savings Account customers.

Click here (2-page PDF 337KB) for terms and conditions for China A shares offers

Click here (32-page PDF 770KB) for terms and conditions for Shenzhen-Hong Kong/Shanghai-Hong Kong Stock Connect and other risk disclosure

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.

  • Bonds/Certificates of Deposit ("CDs")/Unit Trusts("UT")/Deposit Plus(DPS)/Capital Protected Investment Deposit(CPI)/Equity-linked investment (ELI)  are not equivalent to time deposits. Unit Trusts are investment products and some may involve derivatives.

  • Investors should not base on material alone to make investment decision.

  • 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.

  • In the worst case scenario, the value of the UT may be worth substantially less than the original amount you have invested (and in an extreme case could be worth nothing).

  • Issuer's Risk – you rely on the issuer's creditworthiness. Bonds/CDs 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.

Additional risks are disclosed in the "Risk Disclosure" section. Please refer to "Risk Disclosure" section for details. 

Deposit Plus (DPS) and CPI are not equivalent to time deposits. DPS/CPI/ELIs/CDs are not protected deposits, and they are NOT protected by the Deposit Protection Scheme in Hong Kong. DPS is not principal protected. 

Risk Disclosure

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

  • There are investment 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 investment objectives. If you are in any doubt, get independent professional advice.
  • Bonds/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 your bonds/CDs prior to maturity.
  • It is the issuer who pays interest and repays 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 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 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/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.
  • CD is NOT equivalent to a time deposit. It is NOT protected under the Hong Kong Deposit Protection Scheme. Do not invest in 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.

Structured Products Risk Disclosure

  • Deposit Plus 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).

Deposit Plus (DPS) Risk Disclosure

  • Not a time deposit – Deposit Plus NOT equivalent to, nor should it be treated as a substitute for, time deposit. It is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.
  • Derivatives risk - Deposit Plus is embedded with FX option(s). Option transactions involve risks, especially when selling an option. Although the premium received from selling an option is fixed, you may sustain a loss well in excess of such premium amount, and your loss could be substantial.
  • Limited potential gain - The maximum potential gain is limited to the interest on the deposit.
  • Maximum potential loss - Deposit Plus 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.
  • Not the same as buying the linked currency - Investing in Deposit Plus is not the same as buying the linked currency directly.
  • Market risk - The net return of Deposit Plus will depend upon the exchange rate of the deposit currency against the linked currency prevailing at the deposit fixing time on the deposit fixing date. Movements in exchange rates can be unpredictable, sudden and drastic, and affected by complex political and economic factors.
  • Liquidity risk - Deposit Plus is designed to be held untill maturity. You do not have a right to request early termination of this product before maturity. Under special circumstances, the Bank has the right to accept your early redemption request at its sole discretion and on a case by case basis. The Bank will provide an indication of the redemption price upon such request. Your return upon such early redemption will likely be lower than that if the deposit were held until maturity and may be negative.
  • Credit risk of the Bank - Deposit Plus is not secured by any collateral. 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 deposit amount.
  • Currency risk - If the deposit currency and/or linked currency is not your home currency, and you choose to convert it back to your home currency upon maturity, you may make a gain or loss due to exchange rate fluctuations.
  • 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. The value of your investment will be subject to the risk of exchange rate fluctuation. 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.

Capital Protected Investment Deposit ("CPI") Risk Disclosure

  • Not a time deposit - Currency Linked III is NOT equivalent to, nor should it be treated as a substitute for, time deposit. It is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.
  • Derivatives risk - Currency Linked III is embedded with FX option(s). Option transactions involve risks. If the exchange rate of the currency pair performs against expectation at the fixing time on the fixing date, you can only earn the minimum payout of the structure.
  • Limited potential gain - The maximum potential gain is limited to higher payout on the deposit less the principal amount, when exchange rate of currency pair at fixing moves in line with your anticipated direction.
  • Not the same as buying the linked currency - Investing in Currency Linked III is not the same as buying the linked currency directly.
  • Market risk - The return of Currency Linked III 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.
  • Liquidity risk - Currency Linked III is designed to be held untill maturity. You do not have a right to request early termination of this product before maturity. Under special circumstances, the Bank has the right to accept your early redemption request at its sole discretion and on a case by case basis. The Bank will provide an indication of the redemption price upon such request. Your return upon such early redemption will likely be lower than that if the deposit were held until maturity and may be negative.
  • Credit risk of the Bank - Currency Linked III is not secured by any collateral. 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 deposit amount.
  • Currency risk - If the deposit currency is not your home currency, and you choose to convert it back to your home currency upon maturity, you may make a gain or loss due to exchange rate fluctuations.
  • 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 when you convert RMB into your home currency. The value of your RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your RMB deposit to other currencies at an exchange rate that is less favourable than that in which you made your original conversion to RMB, you may suffer loss in principal. This product (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.

Equity Linked Investments Risk Disclosure

The following risks should 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 ("UT") Risk Disclosure

  • Funds which are invested in certain markets and companies (eg 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 organized 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.
  • The value of investments and the income from them can fluctuate and is not guaranteed. Investor may not get back the amount they invest.
  • Investment returns not denominated in HKD or USD are exposed to exchange rate fluctuations. Rates of exchange may cause the value of investments to go up or down.
  • Please refer to the offering documents of the respective funds for details, including risk factors.
  • Investment involves risks. Past performance is no guide to future performance of the funds.

Risks associated with the MRF arrangement

  • Quota restrictions: The Mainland-Hong Kong Mutual Recognition of Funds (MRF) scheme is subject to an overall quota restriction. Subscription of units in the Fund may be suspended at any time if such quota is used up.
  • Failure to meet eligibility requirements: If the Fund ceases to meet any of the eligibility requirements under the MRF, it may not be allowed to accept new subscriptions. In the worst scenario, the SFC may even withdraw its authorisation for the Fund to be publicly offered in Hong Kong for breach of eligibility requirements. There is no assurance that the Fund can satisfy these requirements on a continuous basis.
  • Mainland China tax risk: Currently, certain tax concessions and exemptions are available to the Fund and/or its investors under the MRF regime. There is no assurance that such concessions and exemptions or Mainland tax laws and regulations will not change. Any change to the existing concessions and exemptions as well as the relevant laws and regulations may adversely affect the Fund and/or its investors and they may suffer substantial losses as a result.
  • Different market practices: Market practices in the Mainland China and Hong Kong may be different. In addition, operational arrangements of the Fund and other public funds offered in Hong Kong may be different in certain ways. For example, subscriptions or redemptionredemptions of units may only be processed on a day when both Mainland and Hong kong markets are open, or it may have different cut-off times or dealing day arrangements versus other SFC-authorised funds. Investors should understand these differences and their implications.
  • Concentration risk / Mainland China market risk : The Fund invests primarily in securities related to the Mainland China market and may be subject to additional concentration risk. Investing in the Mainland China market may give rise to different risks including political, policy, tax, economic, foreign exchange, legal, regulatory and liquidity risks.
  • RMB currency and conversion risks : RMB is currently not freely convertible and is subject to exchange controls and restrictions. Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate. Any depreciation of RMB could adversely affect the value of investor’s investment in the Fund. Investors may not receive RMB upon redemption of investments and/or dividend payment or such payment may be delayed due to the exchange controls and restrictions applicable to RMB.

Mainland China Equity risk

  • Market risk: The Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
  • Volatility risk: High market volatility and potential settlement difficulties in the Mainland China equity markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may adversely affect the value of the Fund.
  • Policy risk: Securities exchanges in Mainland China typically have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Fund.
  • High stock valuation risk: The stocks listed on the Mainland China stock exchanges may have a higher price-earnings ratio; and such high valuation may not be sustainable and stock prices may fall drastically.
  • Liquidity risk: Securities markets in Mainland China may be less liquid than other developed markets. The Fund may suffer substantial losses if it is not able to dispose of investments at a time it desires.

Risk associated with small-capitalisation/mid-capitalisation companies

  • The stock of small-capitalisaction/mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.

Risk associated with ChiNext market

  • Differences in regulations: The rules and regulations regarding securities in the ChiNext market are less stringent in terms of profitability and share capital than those in the main board market.
  • Emerging nature of ChiNext companies: Given the emerging nature of companies listed on the ChiNext market, there is a risk that the securities traded on ChiNext market may be susceptible to higher market volatility compared to securities traded on the main board market.
  • Higher fluctuation on stock prices: Listed companies in the ChiNext market are usually in their preliminary stage of development having a smaller scale and shorter operating history and their stability and resistance to market risks may be lower. Hence, they are subject to higher fluctuation in stock prices as the performance of these companies changes. They are subject to higher risks and higher turnover ratios than companies listed on the main board.
  • Delisting risk: The companies listed on the ChiNext market are generally less resistant to market risks and may experience more fluctuations in their performance. It may be more common and faster for listed companies in the ChiNext market than companies listed on main board and SME board to delist. This may have an adverse impact on the Fund if the companies that it invests in are delisted.
  • Valuation risk: Conventional valuation methods may not be entirely applicable to companies listed in the ChiNext market. There are fewer circulating shares in the ChiNext market as such stock prices may be more susceptible to manipulation and may experience higher fluctuation upon market speculation. Stocks traded on the ChiNext market may be overvalued and such high valuation may not be sustainable.

Mainland debt securities risks

  • Volatility and liquidity risks: The Mainland debt securities markets may be subject to higher volatility and lower liquidity compared to more developed markets. The prices of securities traded in such markets may be subject to fluctuations.
  • Counterparty risk: The Fund is exposed to the credit/default risk of issuers of the debt securities that the Fund may invest in.
  • Interest rate risk: Investment in the Fund is subject to interest rate risk. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise. The Fund is exposed to additional policy risk of potential adjustment by the government to the interbank deposit rate.
  • Downgrading risk: The credit rating of a debt instrument or its issuer may be downgraded subsequent to investment by the Fund. In the event of such downgrading, the value of the Fund may be adversely affected. The Manager may or may not be able to dispose of the debt instruments that are being downgraded.
  • Credit rating agency risk: The credit appraisal system in the Mainland and the rating methodologies employed in the Mainland may be different from those employed in other markets. Credit ratings given by Mainland rating agencies may therefore not be directly comparable with those given by other international rating agencies.
  • Risk associated with urban investment bonds: The Fund may invest in urban investment bonds. Urban investment bonds are issued by local government financing vehicles ("LGFVs"), such bonds are typically not guaranteed by local governments or the central government of the Mainland. In the even that the LGFVs default on payment of principal or interest of the urban investment bonds, the Fund could suffer substantial loss and the net asset value of the Fund could be adversely affected.
  • Risk associated with asset-backed securities: The Fund may invest in asset-backed securities (including asset-backed commercial papers). Asset-backed securities may be highly illiquid and prone to substantial price volatility. These instruments may be subject to greater credit, liquidity and interest rate risk compared to other debt securities. They are often exposed to extension and prepayment risks and risks that the payment oligations relating to the underlying assets are not met, which may adversely impact the returns of the securities.
  • Risk associated with debt securities which are rated BB+ or below by a Mainland credit rating agency or unrated: The Fund may invest in debt securities rated BB+ or below by a Mainland credit rating agency or unrated. Such securities are generally subject to lower liquidity, higher volatility and greater risk of loss of principal and interest than high-rated debt securities.

Risks associated with repurchase and reverse repurchase transactions

  • The Manager may enter into repurchase and reverse repurchase transactions for the account of the Fund on the Mainland stock exchanges or in the interbank market.
  • The collateral pledged under the reverse repurchase transactions in the interbank market may not be marked-to-market. In addition, the Fund may suffer substantial loss when engaging in reverse repurchase transactions as there may be delay and difficulties in recovering cash placed out or realizing the collateral, or proceeds from the sale of the collateral may be less than the cash placed with the counterparty due to inadequate valuation of the collateral and market movements upon default of the counterparty.
  • For repurchase transactions, the Fund may suffer substantial loss as there may be delay and difficulties in recoving collateral pledged with the counterparty or the cash originally received may be less than the collateral pledged due to inadequate valuation of the collateral and market movement upon default of the counterparty.
  • Distribution out of capital risk: Investors should note that the payment of distributions out of capital represents a return or a withdrawal of part of the amount they originally invested or capital gain attributable to that amount. Any distributions involving payment of dividends out of capital of the share class will result in an immediate decrease in the NAV per unit of the relevant units.

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 DisclosureInvestment in China A Shares through Shanghai-Hong Kong and Shenzhen-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.

  • Pre-Trade Checking
    You must ensure that there are sufficient available shares in your account to cover any proposed sell order under Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect. Otherwise, your sell order may be rejected.
  • Settlement
    Northbound trades will follow the A share settlement cycle of the relevant Mainland market, where settlement of shares will occur on T day free of payment, and settlement of funds will be effected on T+1 day.
    Although the transfer of shares precedes the transfer of cash under Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, title to the shares will not be released until receipt of confirmation of payment (normally on T+1 day). Where the purchase is pre-funded (by way of a debit of cash in your account and a corresponding cash prepayment by the Bank to HKSCC), shares may be released on T day.
  • Quota Restrictions
    As at November 2016, the Daily Quota (which limits the net value of Northbound buy trades on each trading day) is set at RMB 13 billion for each China A Share market. The Daily Quota may be revised by the PRC authorities from time to time without prior notice.
    As a result of the quota restrictions, there is no assurance that a buy order can be successfully placed through Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect.
  • Restriction on Day Trading
    If you buy shares on T day, you may be able to sell only on or after settlement of the buy trade has been completed (normally on T+1 day).
  • Disclosure of Interests
    If you hold or control 5% or more* of the issued shares of a PRC listed company, you must disclose such interest.
    If there is any change in your shareholding of 5% or more*, or if a change results in your shareholding falling below 5%, you also have disclosure obligations.
  • Short Swing Profit Rule
    If you own 5% or more* of the issued shares of a PRC listed company, you must return to the company any profit made from a sale of shares within six months of the purchase thereof (or vice versa).
  • Foreign Ownership Limits
    A single foreign investor's shareholding in a PRC listed company must not exceed 10%. The aggregate of all foreign investors' shareholding in a PRC listed company must not exceed 30%. The foreign ownership limits may have an adverse effect on the liquidity and performance of an investment in China A Shares. As a result, you may suffer losses through your trading or investment in China A Shares.

*         Calculated on an aggregate basis, i.e., across both domestically and overseas issued shares of the PRC listed company, whether the relevant holdings are through Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, QFII/RQFII regime or other investment channels.

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 bonds/CDs.

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