What is Currency Linked Deposit?

Currency Linked Deposit (CLD) is a combination of traditional time deposit and currency option. In addition to traditional deposit interest, it pays an extra interest derived from the option, offering you a chance to enhance the potential returns by taking advantage of foreign exchange movements.

Benefits Offered by CLD

Who should consider investing in CLD?

1. Want to earn a higher return than the traditional time deposit; and
2. Willing to hold both the deposit currency and the linked currency; or
3. Believe the exchange rate between the deposit currency and the linked currency would be relatively stable.

	This is a structured product involving derivatives. The investment decision is yours but you should not invest in Currency Linked Deposits 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. Risk Warning: Currency linked deposit is not the same as nor should it be treated as a substitute for normal time deposits. This product is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong, and the repayment of this product is not guaranteed by the Hong Kong SAR Government's Exchange Fund. CLD is not the same as nor should it be treated as a substitute for the exchange of currency. The amount of gain is limited to the pre-determined coupon no matter how high the price of the linked currency has increased. The customer must be prepared to take risk, as the Deposit and its earnings may be converted into the linked currency. Investment in CLD is subject to the credit risk ("Credit Risk") / insolvency risk ("Insolvency Risk") of Shanghai Commercial Bank ("the Bank"). CLD is not supported by any collateral and its earning is subject to the market risk ("Market Risk"). The customer will bear the potential losses due to the fall in exchange of the linked currency. Such losses may reduce the interest earnings and the principal amount of the Deposit substantially ("Potential Loss"). No withdrawal or termination will be accepted prior to the maturity ("Liquidity Risk"). The customer should avoid over concentration to a particular type of financial tools or issuers/counterparties ("Asset Concentration Risk"). Investors should read the relevant Terms and Conditions and risk warning notice before making any investment decision. Please also refer to the "Risk Disclosure Statement" section below for further details.

Risk Disclosure Statement
Currency linked deposit is not the same as nor should it be treated as a substitute for normal time deposits. The interest earnings on the Deposit will depend on the market conditions at the fixing time and at maturity. The customer must be prepared to take risk, as the Deposit and its earnings will be paid in the Deposit Currency or the Linked Currency, whichever has depreciated against the other, the customer will bear the potential losses due to depreciation. Such losses may reduce the interest earnings and the principal amount of the Deposit substantially.

This page is for information purposes only and does not constitute any offer or solicitation or advice regarding the CLD. No indication, representation, guarantee or other assurance as to the outcome of any investment has been made or will be given to you by or on behalf of Shanghai Commercial Bank ("the Bank"). The examples used in this website are for illustration purpose only and are not based on past record. Unless due to the negligence or wilful default of the Bank, the Bank's authorized officers, employees or agents, the Bank accepts no liability whatsoever for any loss arising from the use of and/or reliance upon this page or its contents. These pages or any part hereof should not be reproduced, distributed or published by any recipient for any purpose without the Bank's prior written approval.

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