Gold Master

Investment involves risks. The below risk disclosure cannot disclose all the risks involved. You should read and understand all the relevant documents and risk disclosure before making any investment decision.

• Not principal protected. Your investments in the Scheme are not principal protected. In the worst case scenario, you may lose your entire investment amount.
• Not a bank deposit. Your investments in the Scheme are not and are not equivalent to a bank deposit.
• Not protected deposit. Your investments in the Scheme are not protected deposits and are not protected by the Deposit Protection Scheme in Hong Kong.
• Not an interest-bearing account. The account through which the investments in the Scheme are conducted is not an interest-bearing account with neither yield nor interest provided.
• Volatility of price. The unit prices of the Scheme are calculated with reference to the price of the Reference Asset (and are subject to the Bank’s profit margins). You should recognize that the unit prices of the Scheme are volatile due to the price changes in the Reference Asset resulted from the demand and supply of the Reference Asset and may go up and down. You will bear the potential losses due to the fluctuation of the unit price of the Scheme. The price fluctuation may go beyond your expectation and the losses may reduce your capital invested and earnings (if any) substantially.
• System unavailability. The Bank takes all reasonable measures to monitor and oversee the availability of the systems and has contingency plans in place to mitigate the risk of system unavailability, however, there remains a risk that pricing and trading may be delayed or interrupted due to unforeseen issues in systems.
• No physical delivery of Gold. The Scheme does not involve physical delivery of Gold. You do not have any rights, ownership and possession of any physical Gold in the Scheme. The allocation of units in the Scheme is notional and is for the sole purpose of determining the cash value of your investment in the Scheme. The unit prices of the Scheme are calculated with reference to the prices of the Reference Asset (and are subject to the Bank’s profit margins).
• Not the same as investment in Gold. Investment in the Scheme is not the same as investing in Gold. Price changes in Gold might not reflect in price changes of the Scheme due to the pricing mechanism set out in the paragraph “Pricing Mechanism” under "Key Features of the Scheme" on page 3 of Product Key Facts Statement.
• Market risk. The price of the Reference Asset may go up and down due to movement in macroeconomic factors which include but not limited to interest rate, inflation, economic growth and geopolitical tension. The unit prices of the Scheme are calculated with reference to the price of the Reference Asset (and are subject to the Bank’s profit margins).
• Investment risk. Investment involves risks and the prices of the Reference Asset may fluctuate. The value of your investments in the Scheme may move up or down, sometimes dramatically, and may even become valueless. In the worst case scenario, you may lose your entire investment amount.
• Credit risk of the Bank. Your investment in the Scheme is subject to credit risk of the Bank. Material adverse changes in the financial condition of the Bank may impair or affect the ability of the Bank to meet its obligations under the Scheme.
• Insolvency risk of the Bank. There is no assurance of protection against a default by the Bank in respect of its payment obligations. If you invest in the Scheme, you are relying upon the creditworthiness of the Bank and of no other person. If the Bank becomes insolvent or default on its obligations under the Scheme, you can only claim as the Bank’s unsecured creditor. In the worst case scenario, you may lose your entire investment amount.
• Termination risk. The Bank has the right to terminate the Scheme and/or the account through which your investments in the Scheme are conducted at any time in the circumstances as described under the applicable terms and conditions of the Scheme. These include illegality, pursuant to regulatory requirement, breach of obligations and zero balance under the Scheme and/or the account through which your investments in the Scheme are conducted. Under other circumstances, the Bank may also terminate the Scheme and/or the account through which your investments in the Scheme are conducted by giving at least 90 days’ (or such other notice period pursuant to the relevant regulatory requirement) prior notice in writing to you. In such scenarios, if you could not sell your units in the Scheme back to the Bank before the termination date, the amount payable by the Bank back to you on such termination will be the prevailing price of your units in the Scheme as quoted by the Bank at the date of termination, which may be substantially less than your investments in the Scheme.
• Risk relating to the Bank’s hedging activities. The Bank may enter into hedging transactions, which typically involve the establishment of long and/or short positions in the Reference Asset, with its respective hedging counterparties in the market. It is possible that these activities could adversely affect the prices of the Reference Asset if the size of hedging transaction is substantial. As such the prices of units in the Scheme calculated with reference to prices of the Reference Asset will be affected as well. The value of your investments in the Scheme may move up and down.
• Set-off right by the Bank. The Bank has the right to combine or consolidate any balances standing to the credit of your accounts (including the units of the Scheme standing to the credit of the account) with the Bank to set-off against any indebtedness owed by you to the Bank. Under the applicable terms and conditions of the Scheme, in addition to any lien that the Bank may be entitled, the Bank may, at any time and without prior notice, apply the value of the units of the Scheme standing to the credit of the account towards discharge of any of your liabilities owed to the Bank. Copies of the applicable terms and conditions of the Scheme are available at the Bank’s branches in Hong Kong.
• Conflicts of interest. Potential and actual conflicts of interest may arise from the different roles played by the Bank and the Bank’s subsidiaries and affiliates in connection with the Scheme. Although the Bank’s economic interests in each role may be adverse to your interests in the Scheme, the Bank sets the necessary regulatory information barriers among its different business areas as well as formulates policies and procedures for minimizing and managing such conflicts of interest, so as to comply with applicable laws and regulations, and to ensure the Bank’s transactions or dealings will be transacted at arm’s length.
• Force majeure events. The Bank is not liable for any failure or delay to meet its obligations due to any causes beyond its control which shall include local or international happenings such as Acts of God, Government act, flood, fire, civil commotion, strike, war or any other causes beyond the reasonable control of the Bank, mechanical failure, power failure, malfunction, breakdown, interruption or inadequacy of equipment or installation or other cause which results or is likely to result in the erratic behavior of Gold prices, the closure of the markets or exchanges of Gold or any other cause affecting the operation of the Scheme.

Investment involves risks. The below risk disclosure cannot disclose all the risks involved. You should read and understand all the relevant documents and risk disclosure (in particular, the Risk Disclosure Statement contained in the relevant application form and terms and conditions) before making any investment decision.

• Foreign exchange and precious metal trading involves a high degree of risk. The prices of foreign exchange and precious metals are volatile. You should recognize that the prices of foreign exchange and precious metals as well as the value of your investment may go down as well as up. Losses may be incurred rather than profit made as a result of entering into any FX or precious metal margin trading contract. The risk of loss in leveraged foreign exchange and precious metal trading can be substantial. You may sustain the total loss of your initial margin and any additional deposit or additional funds or security deposited with us to establish or maintain positions.
• No physical delivery is involved. The Margin Trading Services account does not represent any deposit of money or provide any interest or any other yield to you (except those expressly specified by us and notified to you). You have no right to require any delivery or tender delivery of the relevant currency(ies) and/or precious metal in any physical form in Hong Kong or elsewhere under any FX or precious metal margin trading contract. We will not have any duty or liability to appropriate, set aside and/or allot any currency(ies) and/or precious metal in any physical form for or to you, whether under any FX or precious metal margin trading contract, the Margin Trading Services account or otherwise.
• Liquidation risk. Under certain market conditions, you may find it difficult or impossible to liquidate a position. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit the your losses to the intended amounts, since market conditions may make it impossible to execute such orders at the designated price.
• Use of leverage. The high degree of leverage which is often obtained in connection with leveraged FX or precious metal margin trading contracts can work against you. The use of leverage can lead to large losses as well as gains.
• Exchange rate risk. All trading contracts executed under our Margin Trading Services are settled in USD. If your trade is denominated in a currency other than USD, you will also be exposed to fluctuations in the prevailing exchange rate between such currency and USD when your trade is settled, or when your outstanding positions are closed.
• RMB currency and interest rate risk. Renminbi (RMB) is subject to foreign exchange control by the PRC government. If your FX or precious metal margin trading contract involves offshore RMB in the underlying currency pair, you are subject to the foreign control and currency risk of RMB. In addition, the interest rate for offshore RMB may be different from the interest rate for onshore RMB. The interest rate for offshore RMB may deviate significantly from the interest rate for onshore RMB.
• Closing out without your consent. If the market moves against your positions, we may call upon you at short notice to make additional margin deposits (which may be substantial) or interest payments in order to maintain your positions. If you do not immediately provide the required margin deposits or interest payments, your positions may be closed out without further notice to or consent from you. Invariably, closing out will result in a loss to you and, in addition, you will be liable to make further payment to us in the event that your margin deposits do not cover the full loss accruing to your account upon closing out and/or interest charged on your account. You should therefore carefully consider whether such a financing arrangement is suitable in light of your own financial position and investment objectives.
• Electronic trading system risk. Trading on an electronic trading system may differ from trading on other trading systems or platforms. You will be exposed to risks associated with the system including the failure of hardware and software, which could result in your order not being executed according to your instructions or at all.
• Credit risk of the Bank. When you enter into a transaction via using the Margin Trading Services, the Bank may act as the counterparty to your transaction and you will be subject to the Bank’s credit risk.
• Risks of over-the-counter transactions. Transactions conducted via using the Margin Trading Services will be performed on over-the-counter (OTC) model, which are neither traded nor listed on any exchange. Such transactions may involve greater risk than investing in exchange traded products as there may be no centralised source for obtaining prices, which may lead to inefficiencies and a lack of transparency in the pricing of the investment. It may also be difficult or impossible to liquidate an existing position.

Investment involves risks. The risks set out below cannot disclose all the risks involved. You should read and understand all the relevant documents and risk disclosure statements before making any investment decision.

• Foreign exchange and precious metal trading involves a high degree of risk: The prices of foreign exchange and precious metal are volatile. You should recognize that foreign exchange rates and precious metal prices as well as the value of your investment may be volatile. You may suffer a loss and/or not make any profit as a result of trading under FX2. The risk of loss in foreign exchange and precious metal trading can be substantial. You may sustain a substantial or even total loss of your initial collateral and additional deposits or security deposited with us to establish or maintain positions.
• No physical delivery is involved: A FX2 trading account is not the same as a deposit account (such as a savings account) and you may not receive any interest or other similar payments (except those expressly specified by us and notified to you). You have no right to require any delivery or tender delivery of the relevant currency(ies) and/or precious metal in any physical form in Hong Kong or elsewhere under any FX2 trading contract. We will not have any duty or liability to appropriate, set aside and/or allocate any currency(ies) and/or precious metal in any physical form for or to you.
• Liquidation risk: Under certain market conditions, you may find it difficult or impossible to liquidate a position of outstanding FX2 trading contracts. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit your losses at such designated prices, because market conditions may become very volatile in a very short period of time, making it impossible for us to execute your orders at the designated price.
• Exchange rate risk: All trading contracts executed under FX2 are settled in USD. If your trade is denominated in a currency other than USD, you will also be exposed to fluctuations in the prevailing exchange rate between such currency and USD upon settlement of your trade, or when your outstanding positions are closed.
• RMB currency risk: Renminbi (RMB) is subject to foreign exchange control by the PRC government. If your FX2 trading contract involves offshore RMB in the underlying currency pair, you are subject to the foreign control and currency risk of RMB.
• RMB interest rate risk: The interest rate for offshore RMB may be different from the interest rate for onshore RMB. The interest rate for offshore RMB may deviate significantly from the interest rate for onshore RMB.
• Closing out without your consent: Although FX2 does not contemplate the use of leverage, in extreme circumstances whereby the market moves significantly against your positions, you may be called upon at short notice to deposit additional funds. If the required funds are not provided within the prescribed time, or where there is a negative balance in the USD collateral and settlement account due to trading loss or rollover interest, your position under all of your outstanding FX2 trading contracts may be closed out by us without prior notice to you and without your prior consent. Invariably, closing out of your position in such market conditions is likely to result in a loss to you and, in addition, you will remain liable for any resulting deficit in your account. You should therefore carefully consider whether such a financing arrangement is suitable for you in light of your own financial position and investment objectives.
• Electronic trading system risk: Trading on an electronic trading system may differ from trading on other trading systems or platforms. You will be exposed to risks associated with the system including the failure of hardware and software, which could result in your order not being executed according to your instructions or at all.
• Credit risk of the Bank: When you enter into a transaction via using FX2, the Bank may act as the counterparty to your transaction and you will be subject to the Bank’s credit risk.
• Risks of over-the-counter transactions: Transactions conducted via using FX2 will be performed on over-the-counter (OTC) model, which are neither traded nor listed on any exchange. Such transactions may involve greater risk than investing in exchange traded products as there may be no centralised source for obtaining prices, which may lead to inefficiencies and a lack of transparency in the pricing of the investment. It may also be difficult or impossible to liquidate an existing position.

Investors should note that all investments involve risks (including the possibility of loss of the capital invested), prices or value of investment fund units may go up as well as down and past performance information presented is not indicative of future performance. Investors should read carefully and understand the relevant offering documents of the investment funds (including the fund details and full text of the risk factors stated therein) and the Notice to Customers for Fund Investing before making any investment decision. Investment funds are investment products and some may involve derivatives. Investors should carefully consider their own circumstances whether an investment is suitable for them in view of their own investment objectives, investment experience, preferred investment tenor, financial situation, risk tolerance abilities, tax implications and other needs, etc., and should understand the nature, terms and risks of the investment products. Investors should obtain independent professional advice if they have concerns about their investment.