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CURRENCY-LINKED DEPOSIT
Capture additional potential returns from the FX market
WARNING STATEMENT
Currency-linked Deposit ( "CLD" ) is an unlisted structured investment product involving derivatives. Investment involves risks. The investment decision is yours but you should not invest in this product 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.
CLD is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong. It is NOT equivalent to nor should it be treated as a substitute for a traditional fixed deposit.
FEATURES AND BENEFITS
Receive potential interest returns
Enjoy additional potential interest higher than a normal time deposit.
Potential FX conversion
On maturity date, you have the opportunity to convert the currency you needed at a predetermined exchange rate — ideal for studying overseas, doing business abroad or travelling, etc.
Choice of tenors and currencies
Tenors range from 7 days to 6 months.
Available currencies are HKD, USD, AUD, CAD, NZD, CNY, JPY, CHF, GBP and EUR, with 88 currency pairs.
Minimum deposit amount as low as HKD100,000 (or its equivalent) .
No extra handling charge1
Remarks
- Subject to the Currency-linked Deposit Terms and Conditions.
HOW IT WORKS
As an example, assume you are holding HKD and the current exchange rate for AUD/HKD is 5.6600. You forecast AUD/HKD will be 5.6000 or above after two weeks.
1. Select
2. Possible exchange rate movement
1
Choose your Currency Pair: Example is AUD/HKD
Tips: You can select USD, CAD, NZD, CNY and more! Up to 88 currency pairs!
2
Choose your Strike Rate: Example is 5.6000
On maturity date, compare the strike rate and fixing rate (i.e. the exchange rate of your chosen currency pair on maturity date) to determine if the principal and interest amount will be paid by Deposit Currency or Linked Currency.
3
Choose your Deposit Tenor: Example is 14 days
Tips: Customizable tenor from 7 days to 6 months to suit your investment needs!
*Note: If AUD depreciates to zero or Bank becomes insolvent or goes into liquidation, you may lose the entire Principal.
Currency Pair: HKD and NZD
| Currency-linked Deposit | |
| Deposit Currency | HKD |
| Principal Amount | $550,000 |
| Linked Currency | NZD |
| Tenor | 31 days |
| Value Date | March 18, 20XX |
| Strike Rate* | 5.4964 (i.e.NZD1 = HKD5.4964) |
| Exchange Rate Fixing Date / Maturity Date | April 18, 20XX |
| Interest Rate (p.a.)^ | 15.21% |
| Value at Maturity Date@ | If the Fixing Rate is at or above the Strike Rate (i.e.5.4964), HKD 557,104.95 in total will be paid. (Calculation: $550,000 x 15.21% x 31/365 + $550,000) If the Fixing Rate is below the Strike Rate (i.e.5.4964), NZD 101,358.15 in total will be paid. (Calculation: ($550,000 x 15.21% x 31/365 + $550,000) / 5.4964) |
* Spot exchange rate is 5.5159 (i.e. NZD1=HKD5.5159)
^ This is expressed in an annualised format and is based on the hypothetical assumption that the CLD (HKD as “Deposit Currency”) can be rolled over on the same terms for a period of 365 days. It does not reflect the actual Rate of Return of the CLD for the Deposit Tenor. You should not rely on the Interest Rate in an annualised format as an indication of the expected return for the CLD.
@ All calculation results are rounded to two decimal places.
Potential Return of Currency-linked Deposit under Different Scenarios
# Equivalent amount in HKD = NZD (P+I) x Fixing Rate
@ All calculation results are rounded to two decimal places except for the decreases in percentages of the exchange rates, which are rounded to four decimal places.
Currency Pair: CNY and NZD
| Currency-linked Deposit | |
| Deposit Currency | CNY |
| Principal Amount | ¥500,000 |
| Linked Currency | NZD |
| Tenor | 31 days |
| Value Date | March 18, 20XX |
| Strike Rate* | 4.5200（i.e.NZD1 = CNY4.5200) |
| Exchange Rate Fixing Date / Maturity Date | April 18, 20XX |
| Interest Rate (p.a.)^ | 14.30% |
| Value at Maturity Date@ | If the Fixing Rate is at or above the Strike Rate (i.e.4.5200), CNY 506,156.94 in total will be paid. (Calculation: ¥500,000 x 14.30% x 31/360 + ¥500,000) If the Fixing Rate is below the Strike Rate (i.e.4.5200), NZD 111,981.62 in total will be paid. (Calculation: (¥500,000 x 14.30% x 31/360 + ¥500,000) / 4.5200) |
* Spot exchange rate is 4.5375 (i.e. NZD1=CNY4.5375)
^ This is expressed in an annualised format and is based on the hypothetical assumption that the CLD (CNY as “Deposit Currency”) can be rolled over on the same terms for a period of 360 days. It does not reflect the actual Rate of Return of the CLD for the Deposit Tenor. You should not rely on the Interest Rate in an annualized format as an indication of the expected return for the CLD.
@ All calculation results are rounded to two decimal places.
Potential Return of Currency-linked Deposit under Different Scenarios
# Equivalent amount in CNY = NZD (P+I) x Fixing Rate
@ All calculation results are rounded to two decimal places except for the decreases in percentages of the exchange rates, which are rounded to four decimal places.
@ All calculation results are rounded to two decimal places.
Declaration
The illustrative examples above are hypothetical and provided for illustration purpose only. The above scenarios are not based on the past performance of the Linked Currency against Deposit Currency and do not represent all possible outcomes or describe all possible factors that may affect the return for investing in our CLD. The Bank is not making any prediction on future movements of the exchange rates between Linked Currency and Deposit Currency by virtue of providing the illustrative examples. The scenarios assume no fees and charges.
DIGITAL TRADING DEMO
OFFERING DOCUMENTS
ONLINE RATE ENQUIRY
WAYS TO INVEST
Start investing in Currency-linked Deposit today
or visit us at a branch. Alternatively, you can contact us at (852) 3199 9188.
Important Notice and Risk Disclosure
- This product is not a protected deposit and is not protected by the Deposit Protection Scheme and the Investor Compensation Fund in Hong Kong. CLD is not equivalent to traditional Time Deposit and should not be considered as a substitute for Time Deposit.
- It is not principal protected, and you may lose the entire Principal Amount.
- Investment in this product is not the same as buying the Linked Currency directly. This product is not secured by any collateral, hence no first priority of claim to the proceeds of the collateral realized. Investors have to bear the credit and insolvency risks of the Bank, and you could lose all of your investment. There is no liquid secondary market for this product, and the Bank has the right (but not the obligation) to terminate this product early upon occurrence of certain events.
- Foreign currency-denominated transactions involve currency risks. Fluctuations in currency rates may result in significant losses in the amount invested in the event that the currency denominated in the transaction is exchanged to another currency.
- If the investment involves Renminbi, you should note that the value of Renminbi against other currencies fluctuates and will be affected by, amongst other things, the PRC’s government control. You should also note that Renminbi is currently not freely convertible and the offshore Renminbi exchange rate may deviate significantly from the onshore Renminbi exchange rate.
- The illustrative examples given in this webpage are given as an indication only and should be read subject to the offering documents governing this product (including but not limited to the Currency-linked Deposit Terms and Conditions and the Terms and Conditions for All Accounts and Related Services), and you are advised to read and understand the terms and conditions of the offering documents (including but not limited to the Currency-linked Deposit Terms and Conditions and the Terms and Conditions for All Accounts and Related Services) before investing in this product.
- Investor should not invest solely based on this promotional material. You should carefully read the offering documentation for a detailed product information and risk factors prior to making any investment decision. If you have any doubt, you should seek independent professional advice.
- This promotional material is prepared by OCBC Bank (Hong Kong) Limited, and the contents have not been reviewed by any regulatory authority in Hong Kong.
- In case of discrepancy between the English version and the Chinese version, the English version shall prevail.