PRODUCT KEY FACTS STATEMENT
Paper Gold offered by
Shanghai Commercial Bank Limited ("the Bank")
September 2011
The Securities and Futures Commission ("SFC") has authorized the issuance of the Product Key Facts Statement and Principal Brochure of Paper Gold under section 105(1) of Securities and Futures Ordinance.
SFC's authorization is not a recommendation or endorsement of the Paper Gold referred to in this website nor does it guarantee the commercial merits of this product or its performance. It does not mean this product is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.
The SFC takes no responsibility for the contents of this website, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this website.
This section, as part of the offering document, provides you with the key information about our Paper Gold. You should not invest in this product based on this section alone. You should read and understand the remaining part of the offering document, in particular, the "Risk Disclosure Statement" section of the Principal Brochure.
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Paper Gold is an investment product. 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.
Key Risks of Paper Gold :
Paper Gold is NOT the same as NOR should it be treated as a substitute for normal deposits or physical gold.
Paper Gold provides NEITHER yield NOR interest.
Paper Gold is NOT principal protected and is NOT protected by the Deposit Protection Scheme in Hong Kong.
Investing in Paper Gold is subject to the credit risk / insolvency risk of the Bank. Upon insolvency of the Bank, you may lose your entire investment amount and will become an unsecured creditor of the Bank regardless of the performance of the Reference Asset.
Paper Gold DOES NOT involve delivery of physical gold. You have NO right to obtain physical gold. The balance of your Paper Gold maintained at the account is NOT representing that you have any right, ownership and possession of physical gold. All transactions are settled through your designated settlement account with the Bank.
The balance of Paper Gold units maintained at the account is notional and for the sole purpose of determining the value of the Paper Gold investment.
Investing in Paper Gold is NOT the same as investing in the Reference Asset (i.e., Loco London Gold). The changes of market gold prices of the Reference Asset may NOT lead to the exact corresponding change in the prices of Paper Gold due to the mechanism set out in the paragraph entitled "The Pricing and Bid / Offer Spread" under "The Key Features of Paper Gold" section of this product in this website.
Paper Gold is NOT secured on any of our assets or any collateral.
The prices of Paper Gold are volatile. You will bear the potential losses due to the fluctuation of Paper Gold prices. The price fluctuation may be out of your expectation and the losses may reduce your principal amount and earnings (if any) substantially.
The Bank has the set-off and lien right to combine or consolidate any credit balances of your accounts with the Bank to set-off any liability owed by you to the Bank as described in the relevant Terms and Conditions.
The Bank has the right to terminate the account and services as described in the relevant Terms and Conditions which may induce loss to you.
You have to be aware of the concentration risk of investment and are reminded to avoid over-concentration of investment in Paper Gold.
Conflicts of interest may arise and affect your interests if any subsidiaries, affiliates or associates of the Bank involve in connection with the Paper Gold, even though the Bank has internal measures in place to minimize such conflicts. Nevertheless, the Bank will act in good faith and in a commercially reasonable manner in making determinations and calculations with respect to the Paper Gold.
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 Risk Disclosure Statement
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