Reduce investment risks while enhancing your potential return with Structured Notes. Primarily composed of fixed income products, such as zero coupon bonds and derivatives, Secured Notes provide flexible investment strategy, suitable for investors with particular market views.
Risk Disclosure: The investment product is not a deposit or other obligation of, or guaranteed by, the depository institution; not insured by any government agency; and the return of the products you have invested are not guaranteed.
The features of Structured Notes- different assets allocation:
This Product shall not be provided to a US person for purposes of US federal income tax, or a person acting for, or on behalf of, a US person, or a person with any of the address(es) registered with the Bank being a US address or any other person who fails to meet the Bank’s sales requirement.
The following are some general risks of Structured Notes investment. They are not, and are not intended to be, a complete list of all risks.
Foreign Exchange Risks
Foreign currency investments are subject to rate fluctuations, which may provide both opportunities and risks. Investors may experience a loss when converting foreign currency back to local currency. Investors should therefore determine whether any foreign currency investment is suitable in light of their investment objectives, their financial means and risk profile. Exchange controls imposed by the relevant authorities may also adversely affect the applicable exchange rate.
Foreign Exchange Risks (RMB Subscription)
Foreign Exchange risk for CNY subscribed QDII in structured notes: Investors investing in non-local currency denominated notes should be aware of the risk of exchange rate fluctuations that may cause a loss of subscription amount and coupon (if any) when converting back to CNY. Foreign currency investments (including without limitation, notes that are denominated in a different currency from the investor's local currency) are subject to rate fluctuations, which may provide both opportunities and risks. Exchange controls imposed by the relevant authorities may also adversely affect the applicable exchange rate and result in loss of principal and return (if any) upon conversion.
Credit risk and limited recourse: The issuer of the note may default on repayment of principal. Any stated credit rating of the Issuer reflects the independent opinion of the referenced rating agency as to the credit-worthiness of the rated entity, but is not a guarantee of issuer’s quality of credit. Any downgrading of the credit ratings of the issuer and/or its parent or affiliates, by any rating agency could result in a reduction in the value of the note. In the event the issuer enters into bankruptcy, debt restructuring or other similar procedures, the payment sums due on the note may be substantially reduced or delayed. If the issuer defaults, the investor could lose all or part of the principal amount invested.
Offshore Notes Risks
Investors undertake all the risk of the offshore notes investment. The risk disclosure and risk factors of the offshore notes have been listed on Term Sheet. Investors should read Term Sheet carefully to fully understand all risks as well as be willing to undertake all the risks.
Before maturity of the note, investors may not be able to realize an equal or higher value than the purchase price of the notes. There is no guarantee that the note holder will be able to sell the notes at the amount they wish to receive. Note holders may not be able to sell prior to maturity, or may have to sell at a substantial loss.