Invest in capital protected products

You should not only base on this material alone to make investment decisions, but should read the relevant offering documents of the investment products (including the full text of the risk factors stated therein) and risk disclosure statements of the relevant investment products in details before making any investment decision. You should obtain independent professional advice if you have concerns about your investment.

Important Risk Warnings of Structured Notes

• The following risks should be read together with the other risks contained in the "Risk Factors" section in the relevant offering documents of the structured notes.
• This is an unlisted structured product which is complex in nature and involves derivatives. You should not based on this material alone to make investment decisions, please do not invest in it unless you fully understand and are willing to assume the risks associated with it. If you are in any doubt about the risks involved in the product, you may clarify with the intermediary or seek independent professional advice.
• You should understand that the structured notes are considered as a complex product as defined under the Securities and Futures Commission’s (“SFC”) Guidelines on Online Distribution and Advisory Platforms and the SFC's Code of Conduct for Persons Licensed by or Registered with the SFC, and you should exercise caution in relation to such complex product.
• You must read and understand the risk factors and the important information (including the full text of the risk factors therein) set out in the relevant offering documents of the structured notes before making any investment decisions.
• You may suffer partial or total loss of the amount originally invested if the issuer becomes insolvent during the tenor of the structured notes or the issuer defaults on its payment obligation under the structured notes.
• The structured notes are not traded on any markets operated by Hong Kong Exchanges and Clearing Limited or any other stock exchanges. The structured notes are not covered by the Investor Compensation Fund. There may not be an active or liquid secondary market.
• Some structured notes are 100% capital protected at maturity. Nevertheless, investment in the structured notes is subject to the credit risk of the Issuer. In the worst case scenario, you may lose substantial part or all of the capital invested. Please carefully read the warnings and risk factors detailed in the offering documents.
• Some structured notes are non -capital protected. You may suffer a loss of your investment amount partially or fully. Please carefully read the warnings and risk factors detailed in the offering documents.
• The amount of potential return from the structured notes is capped and limited to a predetermined amount.
• The structured notes are not conventional time deposits, and they are not protected by the Deposit Protection Scheme in Hong Kong.
• The structured notes that you purchase are exposed to the credit risk of the issuer of the structured notes.
• Hang Seng Bank Limited (“we”, “the Bank” or “Hang Seng“) acts as your agent to complete the transaction and certain monetary benefits may be obtained in connection with the offering of the structured notes.
• For structured notes that are denominated in Renminbi, you are subject to the risk of fluctuation in exchange rate of offshore Renminbi (CNH). (If applicable).
• The issuer may at its sole and absolute discretion (acting in good faith and in a commercially reasonable manner) adjust the terms of the Note to account for the effect of certain events, which may result in (i) payment postponement; (ii) the replacement of one or more of the underlying instruments to which it is linked or on which it is based; or (iii) the early termination of the note. For further details, please refer to the relevant offering documents.
• We will not obtain and compare quote from other market participants for the structured notes. However, the Bank has pricing and execution controls over the structured notes to ensure fair pricing and treatment of customer’s order.
• Investment involves risk. The price of structured notes may move up or down. Losses may be incurred as a result of buying and selling structured products.
• The investment decision is yours and you should carefully consider whether an investment is suitable for you in view of your own investment objectives, investment experience, investment tenor, financial situation, risk tolerance abilities, tax implications and other needs, etc.
• The structured notes will be redeemed early if the issuer exercises its option to redeem the structured notes in whole on any optional redemption date . If this occurs, in relation to each calculation amount, you will receive an amount equal to 100% of the calculation amount plus an additional capital payment representing a predetermined rate of return which accrues on such calculation amount without compounding during the term of the structured notes, as specified in the term sheet. In case of an early redemption following the occurrence of certain events other than pursuant to the exercise of the issuer’s call option (such as a tax or illegality event or an event of default), you will receive an amount equal to the fair market value of the structured notes at the date of early redemption less any reasonable expenses and costs incurred by the issuer and/or its designated affiliates in connection with the issuer's obligations under the structured notes and in connection with unwinding any underlying and/or related hedging and/or funding arrangements as a result of such events. This may be significantly less than the purchase price of the structured notes and as a result you may suffer a loss of your invested amount partially or fully.
• For structured notes linked to reference rates / benchmarks and that reference rate / benchmarks event has occurred, this may result in a reference rate / benchmarks being replaced with a rate which has been recommended as a replacement by the relevant government or regulatory body or committee. In the event that the relevant replacement rate is not available, or if a reference rate / benchmarks event subsequently occurs with respect to the relevant replacement rate, then the rate applicable to the structured notes may be determined by reference to a further fallback rate, which may be an official central bank rate or another benchmark. For further details, please refer to the offering documents.
• Potential adjustment events (such as a subdivision, consolidation or reclassification of securities, a distribution of dividend or extraordinary dividend or any certain other events affecting the value of a reference asset) may occur. If a potential adjustment event occurs, the calculation agent may make corresponding adjustments to the terms of the structured notes as it determines appropriate to reflect the potential adjustment event, which may adversely affect the value of the structure notes and/or any amounts payable. You may suffer a loss of part or all of your investment as a result.
• Certain extraordinary events (such as a merger, a takeover or exchange offer if the underlying is equity), delisting, nationalisation or transfer to a governmental agency, an extraordinary ETF Event (if the underlying is ETFs) or the insolvency or bankruptcy of the issuer of the reference asset(s)) may occur. Following an extraordinary event, the calculation agent may take action including adjusting or redeeming the structured notes. If the structured notes are redeemed early, you may suffer a loss of part or all of your investment and will not benefit from any future performance of the reference asset(s).
• The above is not an exhaustive list of risk factors. For details, please refer to the offering documents.
• Investing in the structured notes is not the same as investing in the reference asset(s). Potential return of the structured notes is adjusted based on the performance of reference asset(s) on the relevant valuation date. Depending on the product feature, investors of some notes may receive physical delivery of the reference asset(s) at settlement.
• The structured notes are not collaterialised and are not secured by any assets.

Important Risk Warnings of Capital Protected Investment Deposit

• This is a structured product involving derivatives. The investment decision is yours but you should not invest in the Capital Protected Investment Deposit 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. Investor should read the Important Facts Statement, the Term Sheet, the Terms and Conditions and the Risk Disclosure Statements for the relevant investment type before making any investment decision
• Not a time deposit: Currency-Linked Capital Protected Investment Deposit 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 Capital Protected Investment Deposit is embedded with FX options. Option transactions involve risks, even when buying an option. The option’s value might become worthless if the market moves against your expectation
• Limited potential gain: The maximum potential gain is limited to the pre-agreed Return / Coupon calculated at the Potential Return / Coupon Rate
• Not the same as buying the Underlying Currency Pair: Investing in Currency-Linked Capital Protected Investment Deposit is not the same as buying the Underlying Currency Pair directly
• Market risk: The investment return of Currency-Linked Capital Protected Investment Deposit is linked to the exchange rate of the Underlying Currency Pair. Movements in exchange rates can be unpredictable, sudden and drastic, and affected by complex political and economic factors
• Liquidity risk: Currency-Linked Capital Protected Investment Deposit is designed to be held till maturity. The Bank may at its absolute discretion refuse to consent to any withdrawal / termination request before maturity
• Credit risk of the Bank: Currency-Linked Capital Protected Investment Deposit is not secured by any collateral. When you invest in Currency-Linked Capital Protected Investment Deposit, you will be relying on the Bank’s creditworthiness. If the Bank becomes insolvent or defaults on its obligations under a Currency-Linked Capital Protected Investment Deposit, you can only claim as an unsecured creditor of the Bank. In the worst case, you could suffer a total loss of your investment amount
• Currency risk: Exchange rate fluctuates and sometimes drastically. If the Deposit Currency used for investment is not the home currency customarily used by you and thus conversion is required, you should note that you may make a gain or suffer a loss due to exchange rate fluctuations. When the deposit currency depreciates, the loss from depreciation may set-off or even exceed the Return / Coupon (if any) that you may receive from investing in the Currency-Linked Capital Protected Investment Deposit
• Risk of adjustments or early termination by the Bank: Certain Terms and Conditions (including some of the key dates) of Currency-Linked Capital Protected Investment Deposit can be adjusted by the Bank, this might have a negative impact on the Return / Coupon (if any) of the Currency-Linked Capital Protected Investment Deposit
• Concentration Risks: You should avoid excessive investment (in terms of its proportion of the overall portfolio) in any single type of investment, so as to avoid the investment portfolio being over-exposed to any particular investment risk
• Return / Coupon of Currency-Linked Capital Protected Investment Deposit: In order to provide capital protection, the investment strategy adopted for Currency-Linked Capital Protected Investment Deposit may lead to a dilution of performance when compared to non-capital protected products investing in similar markets. You should be prepared to take the risks of earning a lower Return / Coupon (if any) on the capital invested and losing the interest that might otherwise earned on money invested by way of deposits. For Currency-Linked Capital Protected Investment Deposit (with potential multi-coupon), periodic Coupon may be payable to you. For other types of Currency-Linked Capital Protected Investment Deposit, no periodic Return / Coupon will be payable to you prior to maturity
• Principal protection at maturity only: You should understand that the Principal of the Currency-Linked Capital Protected Investment Deposit is capital-protected only when it is held to maturity. If the Bank allows you to early withdraw / terminate the Currency-Linked Capital Protected Investment Deposit with written consent, the amount received by you upon early withdrawal / termination may be less than the amount initially invested by you
• Market Risks associated with Potential Return / Coupon: Apart from the Return / Coupon calculated at the Minimum Return / Coupon Rate (which may be set at zero), there is no guarantee of any Return / Coupon calculated at the Potential Return / Coupon Rate. For Currency-Linked Capital Protected Investment Deposit (with potential multi-coupon), Coupon (if any) is payable only if the Currency-Linked Capital Protected Investment Deposit is held till the relevant Coupon Distribution Dates. Return / Coupon (if any) of Currency-Linked Capital Protected Investment Deposit depends on the market conditions at the time of the relevant determination. Investment return on foreign exchange-linked products are dependent on the prices of inter-banks’ transactions on the linked exchange rate in the foreign exchange markets. You should be fully aware of the risks relating to fluctuations in the linked exchange rates. Factors affecting the performance of foreign exchange markets are numerous, including but are not limited to changes in global and local investment sentiments, interest rate policies, fund flows, political environment, economic environment, business and social conditions in the local marketplace. If the market trend is different from the view taken by you, there is an inherent risk that the total investment return that you may receive from Currency-Linked Capital Protected Investment Deposit will be less than the interest that would have been payable on a time deposit for the same tenor. There is also an inherent risk that no Return / Coupon calculated at the Potential Return / Coupon Rate will be payable to you in respect of the Currency-Linked Capital Protected Investment Deposit
• Early Withdrawal / Termination Risks: Early withdrawal / termination by you is not allowed for Currency-Linked Capital Protected Investment Deposit and the capital of you will be invested in the Currency-Linked Capital Protected Investment Deposit for the entire investment period. The Bank may at its absolute discretion refuse to give consent to any early withdrawal / termination request. If the Bank allows you to early withdraw / terminate the Currency-Linked Capital Protected Investment Deposit with written consent, the Bank shall be entitled to deduct from the Principal of the relevant Currency-Linked Capital Protected Investment Deposit and/or any other amount which may have accrued to you any expenses, costs or damages to the Bank. Damages may include any costs, expenses, liability or losses to the Bank as a result of the early withdrawal / termination by you. Therefore, there is no guarantee that you will be able to receive the Principal and the amount payable to you at early withdrawal / termination may be less than the Principal initially invested. Besides, if the Currency-Linked Capital Protected Investment Deposit is early withdrawn / terminated , you will no longer be entitled to any Return / Coupon of the Currency-Linked Capital Protected Investment Deposit
• Risks associated with unsuccessful subscriptions of Currency-Linked Capital Protected Investment Deposit: The Bank reserves the absolute right to approve any application and to decline any application received (whether in whole or any part thereof) before the Deposit Start Date. In the event of non-acceptance, a notification will be sent by the Bank and any subscription funds received will be returned to you after the Deposit Start Date or as soon as practicable
• Risks relating to Renminbi: If Currency-Linked Capital Protected Investment Deposit involves CNY, the relevant exchange rate(s) or level(s) of the relevant currency pair will be quoted in offshore Renminbi against alternate currency. While both onshore Renminbi and offshore Renminbi are the same currency, they are traded in different and separate markets operating under different regulations and independent liquidity pool. Onshore Renminbi and offshore Renminbi are currently quoted in different markets with different exchange rates, whereby their exchange rate movements may not be in the same direction or magnitude. The offshore Renminbi exchange rate may deviate significantly from the onshore Renminbi exchange rate. You should also note that Renminbi is currently not freely convertible, the value of Renminbi 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 Renminbi and foreign currencies), which may adversely affect your investment return under the Currency-Linked Capital Protected Investment Deposit when you convert CNY into your home currency. Renminbi is subject to foreign exchange control by the PRC government and thus investors investing in Currency-Linked Investment Deposit involving Renminbi are subject to the currency risk of Renminbi

1. Products are 100% capital protection only when it is held to maturity. Investment in the products are subject to the credit risk of the Issuer. The amount received by you upon early withdrawal/ termination may be less than the amount initially invested by you.
2. Under the assumption that the Issuer does not become insolvent or default on its obligations.
3. Currency-linked Capital Protected Investment (“CPI”) Deposit is available for subscription from Mon to Sun 10:00 a.m. - 6:00 a.m. the next day (subject to our discretion, market disruption events, etc.)

   General subscription session (for branch and online subscription)	Mon to Fri: 10:00 a.m. - 5:00 p.m. (excluding Hong Kong public holiday)
   Extended-hours subscription session (online subscription only)	Mon to Fri: 5:00 p.m. - 6:00 a.m. the next day Sat to Sun, Hong Kong public holiday: 10:00 a.m. - 6:00 a.m. the next day

   CPI Deposit subscription instructions made during extended-hours subscription session (including Saturdays, Sundays and Hong Kong public holidays are regarded as pending instructions and to be processed in the Offer Period stated in the relevant Term Sheets.