Currency Linked Capital Protected Investment(CPI)
What is Currency Linked Capital Protected Investment?
Currency Linked Capital Protected Investment is a structured product that involves currency option (derivatives), consisting of buying option(s) on the Underlying Currency Pair of your choice. You will have a chance to receive interest amount calculated by potential interest rate as specified in term sheet.
Invest in Currency Linked Capital Protected Investment
- Principal protection at maturity and potential returns
Currency Linked Capital Protected Investment is 100% principal protected if held to maturity with guaranteed minimum return. If the exchange rate of the currency pair meets the customer's expectations, the investor will receive 100% of the principal back at maturity and receive an interest amount calculated at the potential interest rate specified in the term sheet.
- Various currency combinations for you to choose from
Major currency combinations of HKD or USD with major currencies including AUD, CAD, EUR, GBP, NZD, CHF, SGD, RMB and JPY and cross currency pairs are available for you to choose from, coupled with investment durations from 1 month to 12 months to suit your investment objective.
- Convenient channel and affordable investment amount for you to start
You can subscribe the CPI through mobile channel. The minimum investment amount is HKD50,000 or equivalent with no safe custody charge or handling charges.
How does Currency Linked Capital Protected Investment work?
To set up a Currency Linked Capital Protected Investment, you need to select the investment currency (also named as deposit currency) and investment amount. The target rate, currency pair, investment tenor and the interest will be designed by the Bank. If the exchange rate of the currency pair meets the customer's expectations, the investor will receive 100% of the principal back at maturity and receive an interest amount calculated at the potential interest rate specified in the term sheet. If the exchange rate of the currency pair does not meet the customer's expectations, the investor will receive 100% of the principal back at maturity and receive an interest amount calculated at the minimum interest rate specified in the term sheet
Scenario analysis
Example 1
|
CPI type |
European Bullish(Period end observation-Bullish)-USD/CNY |
|---|---|
|
Investment currency |
Renminbi(CNY) |
|
Investment amount |
CNY1,000,000 |
|
Currency pair |
USD/CNY |
|
Tenor |
6 months |
|
Actual days |
180 |
|
Target rate |
6 (USD/CNY) |
|
Potential Interest Rate |
6.0000% |
|
Minimum Interest Rate |
3.0000% |
|
Interest rate |
i) If Fixing Rate is equal to or above the target rate, interest rate (p.a.) will be Potential Interest Rate(6.0000%) ii) Otherwise, interest rate (p.a.) will be Minimum Interest Rate(3.0000%) |
Return Example
Note: The above examples shown are for reference only and shall not constitute any representation or warranty by the Bank in respect of any possible gain or loss.
Example 2
|
CPI type |
European Bearish(Period end observation-Bearish)-USD/CNY |
|---|---|
|
Investment currency |
Renminbi(CNY) |
|
Investment amount |
CNY1,000,000 |
|
Currency pair |
USD/CNY |
|
Tenor |
6 months |
|
Actual days |
180 |
|
Target rate |
6 (USD/CNY) |
|
Potential Interest Rate |
6.0000% |
|
Minimum Interest Rate |
3.0000% |
|
Interest rate |
i) If Fixing Rate is equal to or below the target rate, interest rate (p.a.) will be Potential Interest Rate(6.0000%) ii) Otherwise, interest rate (p.a.) will be Minimum Interest Rate(3.0000%) |
Return Example
Note: The above examples shown are for reference only and shall not constitute any representation or warranty by the Bank in respect of any possible gain or loss.
Start your investment plan today!
Investment Services Hotline: (852) 2526 5555
Website: www.cmbwinglungbank.com
Important Notice:
This is a structured product involving derivatives. The investment decision is yours but you should not invest in Currency Linked Capital Protected Investment(CPI) 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.
Risk Disclosure Statement:
Not a protected deposit - CPI is not the same as, and should not be treated as a substitute for, normal time deposits. CPI is not a protected deposit and is not protected under the Deposit Protection Scheme in Hong Kong. This structure product is not covered by the Investor Compensation Fund. Unless with consent from CMB Wing Lung Bank (the “Bank”), CPI cannot be withdrawn (in part or in full), terminated or cancelled prior to the maturity. You may suffer losses for withdrawal, termination or cancellation of CPI prior to the maturity. The above information is for reference only and does not constitute and should not be regarded as any offer to purchase or sell. Investment involves risks and the price of investment products may fluctuate or even become worthless. Past record is not an indicator of future performance. Losses may be incurred rather than making a profit as a result of investment. You should carefully and independently consider whether the investment products are suitable for you in light of your investment experience, objectives, financial position and risk profile. Independent professional advice should be obtained if necessary. Please read the relevant terms and conditions together with the risk disclosure statements before making any investment decisions.
This document has not been reviewed by the Securities and Futures Commission of Hong Kong.
Detailed risk disclosure can refer to the following document:
Product Summary for Currency Linked Capital Protected Investment
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