HSBC Premier rewards and offers

• Unit Trusts are investment products and some may involve derivatives. The investment decision is yours but you should not invest in the Unit Trusts 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
• Unit Trusts are NOT equivalent to time deposits
• In the worst case scenario, the value of the unit trusts may be worth substantially less than the original amount you have invested
• Unit Trusts, Bonds, Certificates of Deposit (CDs), structured products (including Equity Linked Investments, Structured Notes, Deposit Plus, Structured Investment Deposits and Capital Protected Investment Deposits) are NOT equivalent to time deposits. Unit Trusts and Bonds and some of the Structured Products are investment products and some Unit Trusts and Structured Products 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.
• The price of securities / structured products may move up or down and may become valueless. Losses may be incurred as well as profits made as a result of buying and selling securities/ structured products.
• In the worst case scenario, the value of the products may be worth substantially less than the original amount you invested (and in an extreme case could be worth nothing).
• Issuer's Risk – Bonds, CDs and structured products are subject to both the actual and perceived measures of credit worthiness 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, you might not be able to recover the principal and interest/coupon if the issuer defaults on the Bonds, CDs and Structured Products.
• Investors should not make investment decisions based on this material alone.
• Investment involves risks. Past performance of the products is no guide to future performance. For details of the products, the related fees and charges and risk factors, please refer to the individual product materials and/or offering materials.
• Currency exchange involves risk. 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 that exchange rate in which you made your original conversion to foreign currency and RMB, you may suffer loss in principal.
• RMB denominated products are subject to liquidity risk as there may be no regular trading and active secondary market for RMB Income Instruments. The bid and offer spread of the price of RMB Income Instruments may be large, so investors may incur significant trading and realisation costs and may suffer losses accordingly.
• Warrants and CBBCs are non-collateralised products. The price of the Warrants/CBBCs may fall in value as rapidly as it may rise and investors may sustain a total loss of their investment. Prospective investors should ensure that they understand the nature and risks and seek for professional advice where applicable.

Unit Trusts

1. Funds which are invested in certain markets and companies (e.g. emerging, commodity markets and smaller companies etc) may also involve a higher degree of risk and are usually more sensitive to price movements.
2. 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.
3. 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 recognized 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 counterparty with which a fund trades such instruments, which could result in substantial loss to a fund.

Bonds and Certificates of Deposit ("CDs")

1. 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/CD for the full tenor. You could lose part or all of your principal if you choose to sell your bonds/CDs prior to maturity.
2. The Bank provides indicative prices of bonds/CDs and the bonds/CDs prices may and/or 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.
3. 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 the Bank unless the Bank is the issuer itself.
4. If you wish to sell the bonds/CDs purchased through the Bank, the Bank 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.
5. There may be exchange rate risks if you choose to convert payments made on the bond/CDs to your home currency.
6. 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 holders of bonds/CDs.
7. If bonds/CDs are early redeemed, you may not be able to enjoy the same rates of return when you use the funds to purchase other products.

Deposit Plus

1. 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.
2. DPS is not principal protected. The net return in relation to Deposit Plus will depend upon market conditions prevailing at the deposit fixing time on the deposit fixing date. You must be prepared to incur loss as a result of depreciation in the value of the currency paid. Such loss may offset the interest earned on the deposit and may even result in losses in the principal amount of the deposit.

Renminbi ("RMB") Related Products

1. There may be exchange rate risks if you choose to convert payments made on RMB related products to your home currency. RMB related 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.
2. 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.
3. RMB debt instruments are subject to interest rate fluctuations, which may adversely affect the return and performance of the RMB products.
4. You could lose part or all of your principal if you choose to sell your RMB products prior to maturity.

Securities Trading

1. The Bank does not provide investment advice on stock trading. Stock trading services provided through any channel involve no solicitation of the sale or recommendation of, or advice on, any stocks from us. All transactions involving the purchase and sale of stocks that you enter into any channel are conducted on an execution-only basis and based on your own judgment; and are not in any way a confirmation or an endorsement from us that it is suitable for you.
2. Making available to you any advertisements, marketing or promotional materials is part of our Bank's ordinary course of securities dealing business. It shall not, by itself, constitute solicitation of the sale or recommendation of any investment products.
3. Investment involves risk. Notwithstanding the benefits of offer(s) mentioned herein, you should carefully consider the risks and features of any investment products (including but not limited to equities/exchange traded funds/exchange traded derivatives & structured products) or services mentioned herein to assess whether they are appropriate for you in view of your investment experience, objectives, financial resources and relevant circumstances. The price of 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.

China A Shares

1. Investment 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.
2. For further information, you should refer to the risk disclosures and other terms set out in the China Connect / Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect Terms and Conditions.

Qualifying Deferred Annuity Policy("QDAP"): The certification status of the above QDAPs do not automatically guarantee that you will be eligible for a tax deduction for QDAP premiums you have paid. The certification status of the QDAPs is based on the features of the product as well as their compliance with the criteria set out in the guideline issued by the Insurance Authority ("IA"); not necessarily matters regarding other tax related criteria or your personal situation. Before claiming any tax deductions, you must meet all eligibility requirements set out in the provisions under the Inland Revenue Ordinance, while following the guidance issued by the Inland Revenue Department ("IRD") of the Hong Kong SAR. Please note that the actual tax benefits of these policies would depend on your personal tax position and there might not be tax deductions benefits if you are not subject to salaries tax and personal assessment in the relevant year of assessment. You should refer to the website of the IRD (www.ird.gov.hk) or contact the IRD directly for any tax related enquiries.

Tax deduction eligibility is only applicable to policyholders or his/her spouse who are Hong Kong taxpayers. Tax deduction for the qualifying premiums paid under VHIS policy (not including levy) will be based on the premiums paid after deducting the premium discount (if any). You should refer to the website of the Inland Revenue Department or contact the IRD directly for any tax related enquiries.

Terms and Conditions for Unit Trusts Fees & Charges :

• Other promotional offers on open-end fund initial charge maybe available from time to time. Customer will enjoy the preferential initial charge offer set out above or the prevailing promotional offer, whichever rate is lower.
• Details of this open-end fund preferential initial charge offer may be changed from time to time at the discretion of The Hongkong and Shanghai Banking Corporation Limited in Hong Kong SAR (the "Bank") without prior notice.
• The Bank reserves the right to change these Terms and Conditions at any time with reasonable notice and the initial charge offer may be withdrawn by the Bank at its discretion without prior notice.
• In case of dispute, the decision of the Bank shall be final and conclusive.
• In case of discrepancies between the English and Chinese versions of these Terms and Conditions, the English version shall apply and prevail.

Life insurance:

The insurance products shown above are not equivalent to any bank deposit or savings. If you wish to learn more about any of the above insurance plans, please refer to the respective product brochure for detailed features and the Policy Provisions for the detailed terms and conditions on the insurance product webpages.

Life insurance products are underwritten by HSBC Life (International) Limited ("HSBC Life"). HSBC Life is incorporated in Bermuda with limited liability, and is one of the HSBC Group's insurance underwriting subsidiaries. HSBC Life is authorised and regulated by the Insurance Authority of the Hong Kong SAR to carry on long-term insurance business in the Hong Kong SAR. Policyholders are subject to the credit risk of HSBC life and early surrender loss.

The above products are products of HSBC Life but not the Bank and they are intended only for sale in the Hong Kong SAR. HSBC Life will be responsible for providing your insurance coverage and handling claims under your policy. For monetary disputes arising between HSBC and you out of the selling process or processing of the related transaction, HSBC will enter into a Financial Dispute Resolution Scheme process with you; however, any dispute over the contractual terms of the product should be resolved between HSBC Life and you directly.

General insurance:

The general insurance policies are underwritten by AXA General Insurance Hong Kong Limited ("AXA"), which is authorised and regulated by the Insurance Authority of the Hong Kong SAR. AXA will be responsible for providing your insurance coverage and handling claims under your policy. The Hongkong and Shanghai Banking Corporation Limited is registered in accordance with the Insurance Ordinance (Cap. 41 of the Laws of Hong Kong) as an insurance agent of AXA for distribution of general insurance products in the Hong Kong SAR. General insurance plans are products of AXA but not HSBC.

For monetary disputes arising between HSBC and you out of the selling process or processing of the related transaction by HSBC, HSBC will enter into a Financial Dispute Resolution Scheme process with you. On the other hand, for any disputes over the terms and conditions of your policy, AXA will resolve with you directly.

The remuneration for sales staff is determined based on the staff's overall performance with reference to a wide range of factors, and is subject to review from time to time, for the purpose of encouraging the building of deep, long-lasting and mutually valuable relationships with customers. It is not determined solely on financial performance.

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.

For product details and related charges, please refer to the relevant brochures and policy provisions or contact our HSBC's branch staff.

The information in this document does not constitute a solicitation for making any deposit or investment in any products referred to herein. 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. This material has not been reviewed by the Securities and Futures Commission of Hong Kong.

To borrow or not to borrow? Borrow only if you can repay!