Illustrative Example
| Deposit Currency | : | HKD |
| Linked Currency | : | AUD |
| Deposit Date | : | 15th January 2009 |
| Fixing Date | : | 22nd January 2009 |
| Maturity Date/Settlement Date | : | 22nd January 2009 |
| Tenor | : | 7 days/1 week |
| Spot Rate | : | AUD/HKD 5.1212 |
| Strike Rate | : | AUD/HKD 5.0800 |
| Contract Interest Rate | : | 21%p.a. |
| Principal | : | HK$ 500,000 |
Currency Linked Deposit Illustrative Example
|
Investment Product
|
Contract Interest Amount Receivable on the Maturity Date |
Scenarios on the Fixing Date |
Fixing Rate (Exchange Rate on the Fixing Date) |
Principal plus Contract Interest Amount on the Maturity Date |
Net Gain / (Loss) |
Net Gain / Loss
(%p.a.)
|
|---|---|---|---|---|---|---|
| CLD Contract Interest Rate: 21% Strike Rate: 5.0800 |
HK$ 500,000 ×21% ×7/365 =HK$ 2,013.70 |
Scenario 1: AUD has appreciated against HKD |
5.1000 (Higher than Strike Rate) | HK$ 500,000 (Principal) +HK$ 2,013.70 (Interest) =HK$ 502,013.70 |
HK$ 2,013.70 | +21.00% |
| Scenario 2: Fixing Rate equals to Strike Rate |
5.0800 (equal to Strike Rate) | HK$ 500,000 (Principal) +HK$ 2,013.70 (Interest) =HK$ 502,013.70 |
HK$ 2,013.70 | +21.00% | ||
| Scenario 3: AUD has depreciated against HKD |
5.0400 (Lower than Strike Rate) | [HK$ 500,000 (Principal) +HK$ 2,013.70 (Interest)] ÷5.0800 (Strike Rate) =AUD98,821.59 If converted to Deposit Currency using the market exchange rate of 5.0400 on the Maturity Date, principal plus interest will become AUD98,821.59 ×5.0400 =HK$ 498,060.81 |
(HK$ 1,939.19) | -20.22% | ||
| Scenario 4: AUD has greatly depreciated against HKD |
1.8000(Far Lower than Strike Rate) | [HK$ 500,000 (Principal) +HK$ 2,013.70 (Interest)] ÷5.0800 (Strike Rate) =AUD98,821.59 If converted to Deposit Currency using the market exchange rate of 1.8000 on the Maturity Date, principal plus interest will become AUD98,821.59 ×1.8000 =HK$ 177,878.86 |
(HK$ 322,121.14) | -3,359.26% |
Remarks:
- The above Illustrative Example is for reference only and does not constitute any exhibit or guarantee on prospective gain/loss by Chong Hing Bank.
- Except GBP and HKD use "365 days a year" as Day Count for interest calculation, other currencies which can be selected as Deposit Currency for Currency Linked Deposit use "360 days a year" as Day Count for interest calculation.
- Chong Hing Bank reserves the absolute right to change for the choices of Deposit Currency/Linked Currency, Deposit Tenor, Minimum Deposit Amount and related fees.
HKD Time Deposit (for comparison basis only)
| Deposit Amount | HK$ 500,000 |
| Deposit Interest Rate | 0.01%p.a.* |
| Deposit Tenor | 7 days |
| Total Interest | HK$ 0.96 |
*0.01% is sourced from the Bank's 7 days HKD time deposit as on 15th January 2009. Up-to-date time deposit rates will be made available to investor upon enquiry.
Enquiry
If you are interested in CLD or want to have more information, please contact the Head Office or any branch of Chong Hing Bank or call our Customer Services Hotline at 3768 6888.
