| To meet your wealth management needs in ever-changing market environment, Dah Sing Bank Limited ("The Bank") now offers you Currency Linked Principal Guaranteed Deposit ("CLPGD"), an investment product with potential interest yield enhancement and principal protection features to meet your financial needs. |
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What is CLPGD?
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CLPGD is a structured investment product. It consists of a time deposit in the Deposit Currency and buying one or multiple foreign exchange option(s) on the reference currency pair. Its return is linked to the performance of the Reference Exchange Rate and the product is principal protected at maturity.
The Bank offers various types of CLPGD, including European Bullish / Bearish, European Range, American Bullish / Bearish (One Touch), American Range (Double No Touch). For details, please contact our staff at the Investment Services Section.
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Quick Facts
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Minimum Principal Amount: As specified in the relevant Term Sheet of the product |
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Flexible Deposit Period: The tenor will be specified in the Term Sheet of the product; Up to 1 Year |
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Available Deposit Currency: EUR, AUD, NZD, USD, JPY, CAD, GBP, CHF, CNY and HKD (availability is at the Bank's discretion) |
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Available Reference Currency Pair: AUD/USD, GBP/USD, EUR/USD, USD/JPY, USD/CAD, USD/CHF, NZD/USD, USD/CNY* or any other currency pairs as agreed between you and the Bank (availability is at the Bank's discretion) |
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100% Principal guaranteed if held to maturity
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Not callable by the Bank
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No early termination right by the Customer |
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Embedded Derivatives: This product consists of a time deposit (in the Deposit Currency) and buying one or multiple foreign exchange option(s) on the reference currency pair |
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Maximum Potential Gain: The interest amount as determined by the Interest Rate as stated in the relevant Term Sheet of the product |
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Maximum Potential Loss: This product is subject to the credit risk of the Bank. If the Bank becomes insolvent during the Tenor of the CLPGD or defaults on its obligations under the CLPGD, the investor can only claim as its unsecured creditor. The investor may get nothing back and suffer a total loss of the principal. |
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Exchange rate of CNY refers to the rate quoted in either onshore or offshore market as specified in the Term Sheet of each transaction. |
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Key risks of CLPGD
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Principal Guaranteed at Maturity Only - The principal guaranteed feature is only applicable if CLPGD is held to maturity.
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Derivative Risk - CLPGD is embedded with currency option(s). Option transactions involve risks. When you buy an option, the option value might become worthless if the market moves against your expectation.
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Not a Protected Deposit - CLPGD is not equivalent to time deposit and should not be regarded as a substitute for time deposit. CLPGD is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.
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Foreign Exchange Risk - The return of CLPGD is linked to the performance of the reference exchange rate(s). Movements in exchange rates can be sudden and drastic, and affected by complex political and economic factors. You will be exposed to a risk of loss arising from exchange rate fluctuations. 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.
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Exchange Control - For currencies subject to exchange controls imposed by the relevant governments, such as renminbi (RMB), the exchange rates may be easily affected by change in government policies. Such currencies may have different exchange rates quoted in different markets. For example, exchange rates of RMB are quoted in onshore and offshore markets; the onshore rate of RMB is being referred as “CNY” and the offshore rate (i.e. when traded in Hong Kong) is being referred as “CNH”. Although CNY and CNH represent the same currency, they do not necessarily have the same exchange rate and may not move in the same direction. |
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Limited Potential Return - Investing in CLPGD is not the same as investing in the reference currency pair directly. Even if your view of the market movement of the reference exchange rate is correct, the maximum potential return is limited to the pre-determined interest amount for the CLPGD.
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Credit Risk - CLPGD is not supported by any collateral or guarantee. CLPGD is subject to the creditworthiness of the Bank. If the Bank becomes insolvent or goes into liquidation or defaults on its obligations under the CLPGD while it is still outstanding, you will rank as an unsecured creditor of the Bank and could, in the worst case, lose your entire principal irrespective of the terms of the CLPGD.
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Liquidity Risk - CLPGD is designed to be held until maturity. CLPGD is not listed on any exchange, has no secondary market and is not transferable. Any termination, cancellation or withdrawal prior to maturity is subject to the sole discretion and consent of the Bank. You may incur significant costs or losses as a result of early termination, cancellation or withdrawal.
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Adjustment and Early Termination - The Bank has the right (but not the obligation) to adjust the terms of or to early terminate the CLPGD upon occurrence of certain events. If the terms of CLPGD are adjusted or the CLPGD is terminated by the Bank early, you may suffer a substantial loss under this product.
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Conflicts of Interest - Potential and actual conflicts of interest may arise from the different roles played by the Bank, its subsidiaries and affiliates in connection with the CLPGD. Although the Bank's economic interests in each role may be adverse to your interest in the CLPGD, the Bank maintains regulatory required information barriers between its different business areas as well as policies and procedures designed to minimize and manage such conflicts of interest to comply with applicable laws and regulations, and to ensure those transactions or dealings will be transacted at arm's length.
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For Settlement Fund of the Order Sourced from To-be-received Funds- The Bank has the right to cancel an order if it fails to receive the funds to be received by you from another investment transaction on time and there is no sufficient fund placed by you for settlement. Any cost, charges and losses incurred as a result thereof shall be borne by you.
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This is a structured investment product which is NOT protected by
the Deposit Protection Scheme in Hong Kong.
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| Important Notes |
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Currency Linked Principal Guaranteed Deposit is a structured investment product and is not equivalent to time deposit. It is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong. This product is only principal protected if customer holds it till maturity. You should read and understand all of the relevant offering documents before deciding whether to invest in CLPGD. In addition, you must also read and understand the governing terms under the Bank's Master Terms and Conditions / Master Terms and Conditions for VIP Banking (as applicable) including its General Terms and all its applicable Specific Terms (each as amended from time to time) in respect of your account and relevant application documents.
| Currency Linked Principal Guaranteed Deposit is a structured investment product involving derivatives. This investment decision is yours but you should not invest in this product unless the Bank has explained to you that this product is suitable for you having regard to your financial situation, investment experience and investment objectives. |
This document does not constitute any offer, invitation or recommendation to any person to enter into any investment transaction nor does it constitute any prediction of likely future movements in prices of any investment products.
This document has not been reviewed by the Securities and Futures Commission or any regulatory authority in Hong Kong.
For details of Currency Linked Principal Guaranteed Deposit, please contact our staff at the Investment Services Section.
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To know more and grab investment opportunities
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Enquiry Hotline 2828 8001
Visit Dah Sing Branches
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Related Reference Information
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Important Facts Statement: Currency Linked Principal Guaranteed Deposit- European Bullish/Bearish
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