Bonds

*The minimum investment amount starts from HKD50,000, depending on the type of bonds and the respective market prices at the point of trading.

1. Investment decision is yours but you should not invest unless the intermediary who sells it to you has advised you that it is suitable for you and has explained why, including how buying it would be consistent with your investment objectives. If you are not sure of the suitability of the product, you should not subscribe to it.
2. Bond is NOT equivalent to a time deposit. It is NOT protected under the Hong Kong Deposit Protection Scheme. Do not invest in the bond unless you fully understand and are willing to assume the risks associated with it.
3. Issuer's Risk - The bond is 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 (e.g. upon insolvency of issuer), you might not be able to recover the principal and any coupon if the issuer defaults on the bond.
4. Bonds are mainly for medium to long term investment, not for short term speculation. You should be prepared to invest your funds in bonds for the full investment tenor; you could lose part or all of your investment if you choose to sell your bonds prior to maturity.
5. It is the issuer to pay interest and repay principal of bonds. If the issuer defaults, the holder of bonds may not be able to receive back the interest and principal. The holder of bonds bears the credit risk of the issuer and has no recourse to HSBC unless HSBC is the issuer itself.
6. Indicative bond prices are available and bond prices do fluctuate when market changes. Factors affecting market price of bonds 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. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling bonds.
7. If you wish to sell the bonds purchased through HSBC, HSBC may repurchase them based on the prevailing market price under normal market circumstances, but the buying price may differ from the original selling price due to changes in market conditions. There may be exchange rate risks if you choose to convert payments made on the bonds to your home currency.
8. This information is issued by The Hongkong and Shanghai Banking Corporation Limited. It is based on information obtained from sources believed to be reliable but we make no representation and accept no responsibility as to its accuracy or completeness and shall not be held liable for damages arising out of any person's reliance upon this information. This information is neither a recommendation, an offer to sell nor solicitation of an offer to purchase any investment products. The information is subject to change without notice.