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Capital Protected Investment – Currency Linked III

Take advantage of the foreign exchange market with 100% principal protection at maturity

Important risk warning: 

Earn higher potential returns while protecting your capital at maturity[@investment-irrahowdoesitwork]

Capital Protected Investment – Currency Linked III (CPI III) could help you earn potentially higher returns than a traditional time deposit, from just HKD50,000. All while protecting your capital at maturity, no matter the market trends. 

Key features

Protect your capital fully

Get back 100% of your capital at maturity[@investment-irrahowdoesitwork], regardless of how your chosen foreign currency performs 

Choose from all major currencies

Select and invest in any major currency, available in bullish or bearish view

Earn potentially higher returns

Grow your money to fund your travel plans, retirement needs or education goals

Choose your term length

Enjoy more financial flexibility with term lengths spanning 1 to 15 months

Enjoy unlimited cash rewards for transactions made as a new customer

During the promotion period (now till 31 December 2024), new to Capital Protected Investment Deposit and Deposit Plus customers (who did not hold or make Capital Protected Investment Deposit or Deposit Plus transactions during the Observation Period) can enjoy:

  • a HKD160 cash rebate for every subscription of any Capital Protected Investment Deposit or any Deposit Plus with an amount of HKD200,000 or equivalent in other currencies

There is no cap to the cash rebate you can earn during the promotional period.

T&Cs apply.

Market snapshot

CPI III interest rate (p.a.)

As of 3 Apr 2024
Deposit currency Tenor
 Potential interest rate (p.a.)
CAD 2 months 4.97%
GBP
 6 months
 5.17%
As of 3 Apr 2024
Deposit currency CAD
Tenor
 2 months
Potential interest rate (p.a.) 4.97%
Deposit currency GBP
Tenor
 6 months
Potential interest rate (p.a.) 5.17%

The contents of this table do not represent recommendations from HSBC. Customers should not base their investment decisions solely on the information herein. Please call (852) 2233 3733 or visit any HSBC branch in Hong Kong for more details on a Capital Protected Investment Deposit.

The above interest rates are indicative only and are the potential maximum interest rates. The interest rate will only be applied if the Deposit Currency moves along with the customer's bearish/bullish view. They are not guaranteed and are subject to revision as per prevailing market conditions.

How does CPI - Currency Linked III (CPI III) work?

Here's an illustrative example of what could happen if you invest in a CPI III.

What a CPI III placement could include:

Customer view: Bullish, after 6 months, GBP/USD should appreciate to 1.3390 or above
Product details Important dates Payout upon maturity
Deposit Currency: GBP
Linked Currency: USD
Tenor: 6 months
Deposit amount: £100,000
Spot exchange rate: 1.3190
Trigger rate: 1.3390 (Spot exchange rate + 0.02)		 Trade date: 17 Mar 202X
Deposit date: 24 Mar 202X
Maturity date: 24 Sep 202X
Fixing time: 2pm HK time, 22 Sep 202X		 Best return:
100.37% of principal if GBP/USDfix† at fixing is at or above 1.3390
Minimum Return:
100.28% of principal if GBP/USDfix at fixing is below 1.3390

What a CPI III placement could include:

Customer view: Bullish, after 6 months, GBP/USD should appreciate to 1.3390 or above
Product details Deposit Currency: GBP
Linked Currency: USD
Tenor: 6 months
Deposit amount: £100,000
Spot exchange rate: 1.3190
Trigger rate: 1.3390 (Spot exchange rate + 0.02)
Important dates Trade date: 17 Mar 202X
Deposit date: 24 Mar 202X
Maturity date: 24 Sep 202X
Fixing time: 2pm HK time, 22 Sep 202X
Payout upon maturity Best return:
100.37% of principal if GBP/USDfix† at fixing is at or above 1.3390
Minimum Return:
100.28% of principal if GBP/USDfix at fixing is below 1.3390

†GBP/USDfix is the spot rate for conversion of USD into GBP on relevant FX reference page

Fees and charges

Generally, you won't be charged any additional fees when you invest in our capital-protected structured products. Any operational, administrative and hedging costs, etc. are covered when we calculate the return income and other variables of the CPI. 

Ready to start investing?

Via HSBC Online Banking

Log on to HSBC Online Banking now to get started.

Need help?

You can call us on (852) 2233 3733 if you have any enquiries about investments. Lines are open between 9:00am and 6:00pm, Mondays to Fridays; and between 9:00am and 1:00pm on Saturdays, except on public holidays.

Find out more

Eligibility 

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How does Capital Protected Investment – Currency Linked III (CPI III) work?

 

See how a Capital Protected Investment – Currency Linked III (CPI III) may work for you and what payouts you may receive

Equity-linked investments

 

Tap into the potential of Hong Kong and US equity market movements and earn higher potential income even when the market is range-bound

Deposit Plus

 

Capture currency market opportunities to generate interest and increase potential return starting from HKD5,000

Notes

    Disclaimer & risk disclosure 

    Disclaimer

    • The information shown on this website is neither a recommendation, an offer, nor a solicitation for any investment product or service. Investment involves risk. You should carefully consider whether any investment product or service mentioned herein is appropriate for you in view of your personal circumstances. Past performance is no guide to future performance. Investors should refer to the individual product explanatory memorandum or offering document for further details, product features, fees and charges and risks involved. 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.
    • Structured Investment Deposit is not regulated by the Securities and Futures Commission (the 'SFC').  The offering documents of Structured Investment Deposit have not been reviewed by the SFC or any regulatory authority in Hong Kong.  You should exercise caution when buying any Structured Investment Deposit.

     

    Risk disclosure – Capital Protected Investment – Currency-linked III (CPI III)

    • Not a time deposit – CPI III 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 – CPI III is embedded with FX option(s). Option transactions involve risks. If the exchange rate of the currency pair performs against expectation at the fixing time on the fixing date, you can only earn the minimum payout of the structure.
    • Limited potential gain – The maximum potential gain is limited to higher payout on the deposit less the principal amount, when exchange rate of currency pair at fixing moves in line with your anticipated direction.
    • Not the same as buying the linked currency – Investing in CPI III is not the same as buying the linked currency directly.
    • Market risk – The return of CPI III will depend upon the exchange rates of currency pair against trigger rate at the fixing time on the fixing date. Movements in exchange rates can be unpredictable, sudden and drastic, and affected by complex political and economic factors. You must be prepared to take the risk of earning the lower payout/no return (if the exchange rate performs against expectations) on the money invested.
    • Liquidity risk – CPI III is designed to be held until maturity. You do not have a right to request early termination of this product before its maturity. Under special circumstances, HSBC has the right to accept your early redemption request at its sole discretion and on a case-by-case basis. HSBC will provide an indication of the redemption price upon such request. Your return upon such early redemption will likely be lower than if the deposit were held until maturity and may be negative.
    • Credit risk of HSBC – CPI III is not secured by any collateral. When you invest in this product, you will be relying on HSBC's credit-worthiness. If HSBC becomes insolvent or defaults on its obligations under this product, you can only claim as an unsecured creditor of HSBC. In the worst case, you could suffer a total loss of your deposit amount.
    • Currency risk – 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.
    • Risk of early termination by HSBC – HSBC shall have the discretion to uplift a deposit or any part thereof prior to the maturity date (subject to the deduction of such break costs or the addition of such proportion of the return or redemption amount, which may result in a figure less than the original principal amount of the deposit) if it determines, in its sole discretion, that this is necessary or appropriate to protect any right of HSBC to combine accounts or set-off, or any security interest, or to protect the customer's interests.
    • Risks relating to RMB – You should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government's control (e.g. the PRC government regulates conversion between RMB and foreign currencies), which may adversely affect your return under this product when you convert RMB into your home currency. The value of your RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your RMB deposit to other currencies at an exchange rate that is less favourable than that in which you made your original conversion to RMB, you may suffer loss in principal. This product (if denominated in RMB) will be denominated and settled in RMB deliverable in Hong Kong, which is different from that of RMB deliverable in mainland China.