Green Certificate of Deposits
Chong Hing Bank Limited（“Chong Hing Bank”）provides diversified financial products and services, and actively promotes Green, Social, and Sustainability development by offering various green products and services. We aim to cope with weather and environmental challenges jointly with our customers and promote the transition to a low-carbon and sustainable economy.
Chong Hing Bank has launched for the first time Green Certificates of Deposit （“Green CD”）, the proceeds of which will be used to support Green and/or environmental projects, enabling Green CD investor to take part in Environmental, Social and Governance (ESG) related development. The Green CD can be denominated in HKD, USD, and RMB.
Eligible projects and business activities will follow the principles of Chong Hing Bank’s “Green, Social, and Sustainability Deposit Framework”. In addition, an annual report will be provided to investors regarding the investment portfolio and utilisation information of the proceeds raised by Green CD.
CD is a kind of debt instrument which resembles bonds and is issued by financial institutions, such as Chong Hing Bank. CD is transferrable in the secondary market or can be sold back to issuer(s), and offers better market liquidity. Unlike fixed deposits, CD offers more convenience and flexibility in terms of cash management, as there is no penalty of interest for an early withdrawal.
Certificates of Deposit are NOT equivalent to time deposits. Certificates of Deposit (except the non-bearer certificate with original term to maturity not exceeding 5 years) are NOT protected deposits and are NOT protected by the Deposit Protection Scheme in Hong Kong.
- The price of Certificates of Deposit (CDs) can and does fluctuate, and any individual CD may experience upward or downward movements, and may even become valueless. Factors affecting market price of CDs 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 CDs. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling CDs.
- Investors should be prepared for the investment in the CDs until maturity; any early sale of CDs before the maturity date may result in losing part of or all of the original investment.
- This information is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. CHB makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. The information is subject to change without notice.
- CDs are a type of investment products. The 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 with the consideration of your financial conditions, investment experiences and objectives, and has explained why, including how buying it would be consistent with your investment objectives. If you are unsure of the suitability of the product, you should not subscribe to or invest in it. You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial conditions and circumstances.
- Investment involves risks. Past performance of investment products are no guide to future performance. The value of investments and the income from them can fluctuate and is not guaranteed. Investors may not get back the amount they invest.
- Issuer's Risk – you rely on issuer's creditworthiness. The product is subject to both the actual and perceived measures of credit worthiness of the issuer. CD holders are exposed to the Issuer’s Credit Risk. There is no assurance of protection against a default by the issuer in respect of the repayment obligations. If the issuer fails to fulfill its obligations, in the worst case scenario (e.g. insolvency of issuer), the investor might not be able to recover the principal and/or any interest/coupon (if any) and the potential maximum loss could be 100% of investment amount and no interest/coupon received.
- Investment returns not denominated in home currency are exposed to exchange rate fluctuations. Rates of exchange may cause the value of investments to go up or down.
- If you wish to sell the CDs purchased from our bank, CHB may repurchase it based on the prevailing market price under normal market circumstances, but the selling price may differ from the original buying price due to changes in market conditions.
- The secondary market for CDs may not provide significant liquidity or may trade at prices based on the prevailing market conditions and may not be in line with the expectations of CDs holders.
- RMB products may be adversely affected by the limited liquidity in the secondary market resulting in a huge bid offer spread; investors are exposed to higher liquidity risk and hence possible loss.
- If a CD is early redeemed, you may not be able to enjoy the same rates of return when you re-invest the funds in other investments.
- If you invest in RMB denominated debt securities, you are subject to currency risk which may impact on the performance and return of the products.
- Please refer to the offering documents of the respective Green CD products and the “Green, Social, and Sustainability Deposit Framework” for other details, including information and risk factors of Green CD and Green, Social, and Sustainability development.