Investment Services

An investor should not rush into an investment but instead should be sure he/she understands the nature and risks of the investment and has the ability to bear potential losses before making an investment decision. Below are some smart tips:

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  Provide the necessary information accurately (e.g. investment objectives, investment experience and knowledge, financial situation, investment horizon) and complete customer risk profiling with your banks properly.
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  Spend time to read the product documents such as prospectus to study the product’s features and risk thoroughly and do not rely solely on marketing materials and/or key facts statements which only provide highlights.
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  Focus not only on potential returns and past performance, but also on the product features and risks.
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  Ask questions and seek clarifications from your banks if in doubt. Make sure you fully understand the features and risks of the investment products, select products that suit your personal circumstances. Diversify your investments to avoid concentration risk.
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  You have to take responsibility for your own investment decision when you invest in a simple product in a self-directed manner without any solicitation or recommendation from your banks. Be aware that simple products are not necessarily less risky.
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  Understand why and how (i) a product solicited or recommended by your bank or (ii) a complex product (e.g. complex bond and investment product with derivatives) is suitable for you.
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  Know your rights and exercise them. For example, a less sophisticated investor is given a cooling-off period of at least two calendar days to consider the appropriateness of derivative products (excluding investment funds) that are not listed on an exchange in Hong Kong and debentures with special features (extendable, with loss-absorption feature, exchangeable, and/or convertible) that are not listed on an exchange in Hong Kong; and a vulnerable customer may choose to bring along a companion to witness the sale process of investment products and/or have a second frontline staff of bank to handle the sale of investment products.
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  Request banks to introduce alternative investment products which are also suitable for you so that you can have more choices to consider.
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  Make sure you understand the ramifications before signing any documents (e.g. the acknowledgement of proceeding with a risk-mismatched transaction).