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2017 Second Quarter FX tides to turn in 2Q EUR to rise as USD loses steam HKD set to rise What does the future hold for Hong Kong’s economy and property market? 01 Prestige Seminar “Q3 Investment Outlook” Seminar Investment Market View FX tides to turn in 2Q EUR to rise as USD loses steam 04-05 Investment Market View HKD set to rise What does the future hold for Hong Kong’s economy and property market? CONTENTS 02-03 06 Health Channel Acupressure for allergic rhinitis relief 07 Prestige Corner FX2 – The New Online FX Trading Platform Seize investment opportunities amid market ups and downs 08 Prestige Corner Exchange foreign currencies online A chance to win 2 round-trip flight tickets to Tokyo 08 Prestige Corner Provide you with quality medical cover 09 Prestige Corner New perspective for wealth accumulation with safeguarding future 09 Prestige Corner Home Care Plus Home Insurance Plan Perpetual 20% premium discount 10 Prestige Privileges Hang Seng Prestige World Mastercard Presents exceptional travel rewards & privileges Prestige Banking Hotline : 2998 9188 hangseng.com/prestige 《PRESTIGE》is published by Hong Kong Economic Times on behalf of Hang Seng Bank Limited Address: 8/F Kodak House II, 321 Java Road, North Point, Hong Kong Disclaimer •This document has been distributed by Hang Seng Bank Limited (the“Bank”) in Hong Kong. It is not intended for anyone other than the recipient and should not be distributed by the recipient to any other persons. It may not be distributed to the United States, Canada, Japan or Australia and may not be distributed, directly or indirectly, to any US person (within the meaning of Regulation S under the US Securities Act of 1933) or any persons situated in mainland China (but not including people in Hong Kong, Macau or Taiwan). It may not be reproduced or further distributed. •The sections “HKD set to rise – What does the future hold for Hong Kong’s economy and property market?”and “Acupressure for allergic rhinitis relief” comprise various sub-sections which have been prepared and issued by the author/expert as marked in the article. The Bank, its officers, employees or agents have not been involved in the preparation of such article and information contained therein and did not devise, select, add to, modify or otherwise exercise controls over the contents. The views or opinions as expressed therein represent the personal views or opinions of the author/expert and do not represent those of the Bank. Neither the author nor expert is a representative or employee of the Bank. Accordingly, the Bank does not take responsibility for such article and does not endorse its accuracy. •Other than the information noted in the above paragraph, other sections of this document have been prepared and issued by the Bank based on information obtained from sources it believes to be reliable but which it has not independently verified. Whilst every care has been taken in preparing such information, the Bank makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Except as specifically indicated, the expressions of opinion are those of the Bank only and are subject to change without notice. •The information contained in this document has not been reviewed in the light of your personal financial circumstances. The Bank is not providing any financial or investment advice. The information is not and should not be construed as an offer to sell or a solicitation for an offer to buy any financial products, and should not be considered as investment advice. Inclusion of specific financial products in this document does not suggest that any such financial product is suitable for you, nor that it will continue to perform as it has in the past. Their inclusion must not be considered as buy or sell recommendations. •Investors should carefully consider whether any investment products or services are appropriate for them in view of their investment experience, objectives, financial resources and relevant circumstances. The relevant product offering documents should be read for further details. •Investment involves risk, value of investment may move up or down, and may become valueless. Past performance figures shown are not indicative of future performance. The relevant product offering documents should be read for further details. •The Bank, the affiliates of the Bank and/or their officers, directors and employees may have positions in any financial instruments mentioned in this document and may from time to time add to or dispose of any such financial instruments. •The Bank, the affiliates of the Bank may act as market maker of or have assumed an underwriting commitment in the securities (or related financial instruments) of any companies discussed in this document, may sell them or buy them from customers on a principal basis and may also perform or seek to perform investment banking or underwriting services for or relating to those companies. Please contact any Hang Seng Bank branch or our Customer Service Hotline 2822 0228 if you would like to request Hang Seng not to use your personal data for direct marketing purposes. Invitation “Q3 Investment Outlook” Seminar The second quarter of 2017 sees rising political risk in European markets add fuel to the fire of market uncertainty. Across the Atlantic, the US trade policy orientation is set to impact Sino-US relations as well as the global economy to an extent yet to be seen. In addition, East Asian geopolitical tensions in recent times are inevitably reshaping the investment landscape. How should investors prepare themselves in the face of such a market condition? Speakers: Mr. Mark Wan Chief Analyst Hang Seng Investment Services Limited Prestige Banking proudly presents the “Q3 Investment Outlook” Seminar featuring Mr. Mark Wan, Chief Analyst, Hang Seng Investment Services Limited and Mr. Chapman Wong, Managing Director, AllianceBernstein Hong Kong Limited. The seminar will explore the global market outlook and investment opportunities for the third quarter of 2017, helping you to make sense of important market intelligence for your investment planning. Date : 15 July 2017 (Saturday) Time : 2:00pm - 4:00pm Venue : 24/F, Penthouse, Hang Seng Bank, 83 Des Voeux Road Central Language : Cantonese Registration : To register, please call 2998 9188 on or before 12 June 2017 (9:00am - 9:00pm) Mr. Chapman Wong Managing Director AllianceBernstein Hong Kong Limited Seats are limited. Participants will be notified of the event details by SMS message on or before 3 July 2017. Customers whose registration has been unsuccessful will also be notified by SMS message. Remarks: Investment involves risk. Prices of investment products may go up as well as down, and may even become valueless. Investors should carefully read the offering documents and the Risk Disclosure Statement of the relevant investment products before making any investment decision. Terms and Conditions: • Prestige Signature customers can enjoy priority seating reservation • If response is overwhelmed, final attendance list will be selected randomly by computer • Attendees must be aged 18 or above • A maximum of two attendees are welcome for each account, one of them must be the account holder • If you and/or your guest(s) cannot attend the seminar, please notify Hang Seng Bank Limited (“Bank”) 5 working days prior to the seminar (i.e. on or before 10 July 2017). If you fail to do so, the Bank reserves the right to debit an administration fee of HK$500 per head directly from your account • The Bank reserves the right to change the contents, date, time, venue, terms and conditions of the seminar or to cancel the seminar • In case of disputes, the decision of the Bank shall be final • The information collected is for registration only • Each speaker as representative of his/her own organization shall be solely responsible for the information, advice and / or opinion provided by himself / herself for his / her own organization at the seminar. The Bank takes no responsibility for independent examining or verifying the information provided in the seminar by the speakers and / or the companies which they represent. Contingency Arrangements When Typhoon Signal No. 8 or Black Rain Storm Signal is Hoisted Attention: If Typhoon Signal No. 8/ Black Rain Storm Signal is hoisted on the seminar day, but is lowered at or before 9:00am, the seminar will take place as scheduled. If the relevant signal is lowered after 9:00am, the seminar will be cancelled. Investment Market View Mr Mark Wan Chief Analyst Hang Seng Investment Services Ltd FX tides to turn in 2Q EUR to rise as USD loses steam The US dollar rules the roost in the foreign exchange market in recent years. Hot on the heels of Donald Trump’s triumph in the US presidential election late last year, the US Dollar Index (USDX), which is a measure of the value of the dollar relative to a basket of foreign currencies, soared to a 14-year high. The market expects the US Federal Reserve to speed up its rate hike pace and predicts that the strong dollar will keep up the momentum. Mark Wan, Chief Analyst at Hang Seng Investment Services Limited, however, goes against the grain. He believes that the USD will weaken and the euro’s performance is set to surprise. am aware that the majority is bullish on the US dollar and bearish on the euro. On the surface, this makes sense. When it comes to monetary policy, the US Federal Reserve has raised interest rates three times since the end of 2015. A few more hikes are likely for this year. In the meantime, the European Central Bank (ECB) is still on quantitative easing and “I 02 negative interest rates. On the political side of things, the Dutch election was held in the middle of March. The market heaves a huge sigh of relief that the anti-EU, far-right Freedom Party has failed to become the largest party in the parliament. But, with the French and German elections in the 2017 pipeline, countries cross Europe are still shrouded in an extreme anti- immigrant atmosphere. Should any of the major EU countries leave the bloc, chances are that the euro may tumble. Conversely, the US political situation is comparatively stable with the dust now settled from the presidential election. As regards the economy, European’s performance has been far from ideal whereas the US reigns supreme,” Wan notes. By: Cally Lam European economic recovery faster than expected If Europe already lags behind the US regarding such factors as monetary policy, political situation and economic fundamentals, how did Wan come up with such distinctive opinions at a time like this? “The reason is that variables are likely to emerge from three factors, namely monetary policy, political situation and economic fundamentals. First of all, I am sceptical of the US Federal Reserve’s ability to raise the US interest rate three times this year. The US inflation rate may have come to 2.7% for the 12 months ended February 2017 but the overall US economy is not as rosy as one may have imagined. The country posted a 2016 GDP growth of 1.6%, which was behind 2015’s 2.6% and also the lowest since 2011. There may be two to three rate rises but four hikes are unlikely.” “Meanwhile, ECB officials have divulged of late that an interest rate increase before the end of its bond purchase programme cannot be ruled out. Such a claim was based on the speedy recovery of the European economy. The once deflation-threatened region in February this year has already reached the ECB’s inflation target of 2%, which was the highest since 2013. Unemployment also plays a part in this. Currently, the EU has an average unemployment rate of 9.6%, which may seem rather high. However, high unemployment is very much a norm in Europe. The current figure is only the level recorded before the European debt crisis. Further, the Purchasing Managers’ Index, which serves as a gauge of economic activities, rose to a six years’ high of 56 in February. This demonstrates that the European economy is steadily getting back on track.” USDX to fall below 100 sooner or later The European economy still has some room for improvement, notes Wan, but the political outlook for Europe is not that grim. “In the Dutch election in March, Geert Wilders clinched only 20 seats and failed to lead the Freedom Party to become the largest party in parliament. Meanwhile, incumbent centre-Right Dutch Prime Minister Mark Rutte won 33 seats, curbing the European right-wing’s populism and dampening the chance for France’s far-right National Front party leader Marine Le Pen’s win in the French election.” Aside from this, currency valuation holds another key. Wan explains, “The euro slid to a 14-year low against the dollar earlier. Its exchange rate hit an all time low. Any favourable factor can do to boost the euro towards a rebound at 1.1 against the dollar.” As for the greenback, the USDX, which is a measure of the value of the dollar relative to a basket of foreign currencies, hovers above 100 in recent times. “The new US government does not encourage a strong dollar,” Wan points out. “It is only a matter of time for the USDX to fall below 100. The dollar will find the next support at a level of 99.5. Anything below that would mean a retreat to a 1997 level.” Euro opportunities and risks Regardless of the various favourable factors, Wan cautions, an upturn for the euro to a large extent hinges on two attributes. “Firstly, Le Pen’s win may overturn this hypothesis. Secondly, launch of Trump’s USD1-trillion infrastructure plan and corporate tax slash from 35% to 15% will add fuel to the US economy, putting increased pressure on the US Federal Reserve to raise interest rates. Whether he will get the US Congress’s buy-in on his ideas remains a question.” Last but not least, Wan stresses, it would be too late for wait-and-see investors to buy the euro after the dust settled on the currency. “The euro does not wait for the French election results. The market will react to opinion polls and election forecast. On the other hand, investors looking to buy now should realise that the euro may tumble further if there are any issues arising from the election. It would be wise for investors to remain watchful and weigh the risks and opportunities brought forth by the euro.” The above information is quoted as of 20 March 2017. Remarks: Investment involves risks, value of investment products may move up or down, and may become valueless. Past performance figures shown are not indicative of future performance. The relevant investment product’s offering documents and risk disclosure statements should be read in detail before making any investment decision. Keep your finger on the market’s pulse! Please visit Hang Seng Investment Corner at hangseng.com/investmentcorner for the latest market information and analyses. 03 Investment Market View HKD set to rise What does the future hold for Hong Kong’s economy and property market? The USD-pegged HKD is standing out from other Asian currencies as it picks up in pace of the dollar’s recent bout of strength. How will the rising HKD affect the local property market and the city’s economy? Would it be bad news for Hong Kong’s economy if its currency continues to gain strength? What is likely to happen if the US turns to trade protectionism? Billy Mak, Associate Professor, Department of Finance and Decision Sciences, School of Business, Hong Kong Baptist University, sheds light on these issues. T he US Dollar Index (USDX), which is a measure of the value of the dollar relative to a basket of foreign currencies, soared to 103.82 at the end of 2016 from last May’s 92.626 low. It retreated moderately to 101.09 in March this year but the rise of 9.1% from May 2016 to March 2017 remains alarming. Strong HKD unfavourable to tourism Hong Kong maintains a linked exchange rate system. The city’s monetary system dances to the tune of the US without the power of an interest rate tweak. In recent years, the HKD has been following the dollar’s upward trajectory. How will this affect the Hong Kong economy? 04 “The USDX has been hovering above 100 in recent times. How much room is there for further increases? An analysis claims that the index will peak somewhere between 108 and 110. In fact, the dollar has been gaining steam for years. The impact of the currency’s strength has emerged in a gradual pace over the last couple of years with the tourism and export industries taking the brunt. But, the market has digested the impact for some time now. As such, Hong Kong’s 2017 economic growth is expected to outshine last year’s performance. Growth of the economy may not be impressive but there is no need for pessimism,” says Billy Mak, associate professor, Department of Finance and Decision Sciences, School of Business, Hong Kong Baptist University. “Rising travel expenses may lead tourists to choose other Asian cities over Hong Kong,” Mak continues. He emphasises however that the city’s issues in tourism cannot be a result of the strong HKD alone. The local tourism industry, he comments, has over the years been cashing in on the influx of mainland Chinese tourists. This over-reliance has driven Hong Kong merchandises and services towards homogenisation. “Hong Kong’s uniqueness lies in its internationalism. Why should tourists choose to visit Hong Kong if the city’s attributes are gradually assimilated into By: Cally Lam those of other Chinese cities? Fortunately, the tourism industry has in recent years begun to seek new ways to attract overseas tourists. For instance, the hotel industry is providing tourists with offers and discounts galore in addition to early bird specials. The Hong Kong Tourism Board has also joined hands with the industry for marketing and promotion to lure non-mainland tourists.” Trump to go soft on China Meanwhile, the strong HKD is by no means more favourable to Hong Kong’s export trade, Mak notes. He points out that Hong Kong’s exports are primarily quoted in USD. For this reason, a strengthening USD will dampen the city’s export competitiveness. “The market is worried that US president Donald Trump’s trade policy would be unfavourable to China but it seems that Trump is taking an approach more down to earth than expected. During his election campaign, for instance, he has vowed to name China a currency manipulator. This never reappeared on his agenda since he took office.” Trump’s attitude towards China was rather hostile. As he took office, however he has possibly taking his advisors’ advice and realised that acting against China will not reap good results, Mak explains. “If the US put its foot down and imposed high tariffs on Chinese imports, it would invite China’s revenge. The result would be mutually detrimental. In view of this, Trump appears to be softening his stance on China.” “Spicy measures” distort property market Turning to the property market, the HKD’s continuous strength in addition to the US Federal Reserve’s quickened pace with three possible interest rate hikes on the 2017 horizon have yet to produce cooling signs for the Hong Kong property market. How come? The Centa-City Leading Index, which reveals the trends of Hong Kong second-hand property prices, reached consecutive highs. This, as Mak points out, has to do with the fact that Hong Kong is an open economic system. “If the sale of Hong Kong’s residential properties is restricted to local people, the market direction would be much clearer. This is because it would be easier to map the property market’s trend by measuring local residents’ affordability. However, the reality is that overseas and mainland buyers constitute a major power in the Hong Kong property market. In view of the RMB’s depreciation in recent years, mainland investors may turn to purchasing HKD assets, including properties and stocks, as a means to hedging against foreign currency risks. For instance, a Chinese property developer recently paid premiums for a residential plot in Hong Kong. Such developers are as well aware of Hong Kong residents’ affordability as their eyes are keen on Hong Kong’s status as an open economic system filled with a certain number of wealthy buyers from mainland China and abroad.” In February this year, two major mainland developers joined forces and successfully bidder for the Lee Nam Road residential plot in Ap Lei Chau for a price in excess of HKD168 billion. The land premium per square foot of floor space came to about HKD22,110, setting a record as Hong Kong’s new prime building land. Mak adds that the thin volume of property transactions also contributes to the soaring property market in Hong Kong. “The Hong Kong government has rolled out waves of ‘spicy measures’ to curb property speculation, causing the volume of short-term speculative property transactions to plunge. In the meantime, many Hong Kong families have already paid off their mortgages. Their strong holding power means that they could choose to stay put or lease out their properties should the prices fall short of their expectations. As such, the sale and buy sides in the secondhand market have both remained in the current state of idleness. Property owners are in no hurry to sell. Prices are therefore holding steady at a high.” The Census and Statistics Department in February this year released the Summary Results of the 2016 Population By-census. Statistics regarding owneroccupancy and mortgages revealed that there were about 1.22 million families owned and occupied their properties Mr. Billy Mak, Associate Professor, Department of Finance and Decision Sciences, School of Business, Hong Kong Baptist University in 2016. Of these, about two thirds have paid off their mortgages. In other words, they are free of any mortgage payment or loan repayment. “Meanwhile, property developers provide myriad offers and shower buyers with multiple discounts and rebates on new property prices in response to the ‘spicy measures’. This does not produce a full picture of the actual transacted prices,” Mak points out, adding that such “spicy measures” as new tax rates distorted the actual market operations to a certain extent. In all, Mak believes that the strong HKD will inevitable hit Hong Kong’s tourism and exports. However, industry players have already come up with countermeasures. Trump has also changed his tone towards China. A trade war between the US and China is unlikely. By and large, Hong Kong’s 2017 economic growth is expected to outrun last year’s, investors can rest easy. The above information is quoted as of 7 March 2017. Remarks: The views as expressed in the above article represent the personal views or opinions of the author and the opinions contained herein are for reference only. The above article is not and should not be considered as a recommendation, offer or solicitation to deal in any of the investment products mentioned herein. Investment involves risks. Value of investments can go down and as well as up, and may become valueless. Past performance is not necessary indicative of future performance. Investors should refer to the offering documents and risk disclosure documents of the relevant investment products in detail before making any investment decision. 05 Health Channel Acupressure for allergic rhinitis relief Fluctuating temperatures during spring to summer shift can trigger symptoms of allergic rhinitis, which can affect sleep quality in some severe cases. Kevin Wong Kim-fung, registered Chinese Medicine Practitioner at Sheung Sin Tong Chinese Medical Clinic shares everyday tips for diet and fitness to reduce the risk for allergies. Wong also recommends four simple acupressure routines for alleviating allergic reactions such as headache and nasal congestion, keeping you invigorated every day. Lung and spleen deficiency the usual suspect watermelon, mung beans, pear and banana as well as fried foods. Spleen-boosting medicinal plants such as Mongolian milk vetch (astragalus membranaceus), Chinese yam (Dioscorea polystachya), qi- and bloodtonifying Chinese red dates and kidney-nourishing beans like hyacinth beans and black beans are recommended.” Watery eyes, headache and a runny, stuffy or itchy nose are common symptoms of allergic rhinitis. “Allergic rhinitis is triggered typically by a weak body with low resistance power, Wong explains. Some sufferers may d e ve l o p s y m p t o m s o f l u n g a n d spleen deficiency such as shortness of breath, hypodynamia, white furry tongue, indigestion, loss of appetite and diarrhoea, causing changes in the function of the kidneys in the long run.” Immunity boost vitally important Cardio exercises including running and swimming can improve symptoms of allergic rhinitis, but it is equally important to maintain an optimal body temperature by dressing appropriately for the weather. This helps to prevent wind-cold flu, which increases the risk of triggering allergic rhinitis responses. “Mind what you eat and stay away from cold-natured food and beverage items such as iced tea, soft drink and icecream,” Wong cautions. “Go easy on such cold-natured foods as bitter melon, Four acupressure points to boost body functions and clear a stuffy nose Wong suggests that a five-minute massage on the below four acupressure points every morning and in the evening or during allergy attacks can ease the symptoms of allergic rhinitis. Keeping a routine can also help achieve preventive results. Registered Chinese Medicine Practitioner Kevin Wong Kim-fung says that a healthy diet and frequent cardio workouts can improve body resistance to the risk of allergic rhinitis reactions Lung and spleen depletion is the major culprit of allergic rhinitis which causes watery eyes, headache and a runny, stuffy or itchy nose To reduce the symptoms of allergic rhinitis, Wong emphasises, it is most important to keep the immune system revved up. “Decreased lung, spleen and kidney functions leave the body at risk of attacks of such allergens as dust mites and changes in temperature and humidity. With a low resistance power, alterations in immune system functions kick in. Post-nasal-drip and sneezing are the body’s ways of getting rid of external irritants and viruses but decreased resistance can trigger hypersensitive nasal allergy reactions. When that happens, even low-irritating dust particles or mild changes in temperature can come down as an invasion and cause rhinorrhoea and sneezing. Conversely, while a strong body can keep such allergens away.” 1 Yingxiang Beside the wing of the nose - to clear a stuffy nose, use the basal joints or rub the Yuji acupressure point (right image), press and rub the Yingxiang acupressure point continuously in an upward direction until warm 2 Yintang 3 Shangxing Half an inch above the mid-anterior hairline - a gentle rub with the fingers can reduce the symptoms of allergic rhinitis 4 Zusanli Midway between the medial ends of the two eyebrows - a gentle rub with the fingers can also help clear a stuffy nose Yuji 3 2 1 06 On the outer calves three inches below the knees (right image)- apply pressure with finger joints can strengthen body functions and boost immunity Zusanli Prestige Corner FX2 – The New Online FX Trading Platform Seize investment opportunities amid market ups and downs I n the ever-changing foreign exchange market, buying (long) is not the only way to make profits! The brand new investment platform - FX2 - FX and Precious Metal Trading Services (“FX2”) allows you to go long on a rising currency and go short on a declining currency. You can now seize investment opportunities amid market ups and downs! • Real-time currency quotes and charts that help you buy (long) or sell (short) a wide range of currencies • Each transaction as low as HKD25,000 • 24-hour* FX or gold trading with one single FX2 account • Flexible order instructions to let you trade at ease * Trading period from Monday 06:00 a.m. to Saturday 03:30 a.m. Open an account to enjoy HKD100 cash reward 50% off trading spread and precious metal transaction commission fee waiver Open an account now! Select “FX2” under “Investments” after log on Personal e-Banking or visit our branches e-Market News Please visit hangseng.com (select “e-Market News” under “e-Services”) to register e-Market News for market information and seize investment opportunities! Enquiry: 2913 3322 hangseng.com/fx2offer Remarks: (1) The Promotion Period is from 16 January 2017 to 30 June 2017 (“Promotion Period”). The Offer is applicable to customers who newly open FX2 - FX and Precious Metal Trading Services Account (“New FX2 Account”) during the Promotion Period. Customers should successfully open a New FX2 Account and all of the account holder(s) of the New FX2 Account must not hold any FX2 - FX and Precious Metal Trading Services Account with Hang Seng Bank Limited (the “Bank”) within a period of 6 months preceding the account opening date (“New FX2 Customer(s)”). New FX2 Customer will receive HKD100 cash reward. Offer is calculated on a per account basis. Each new FX2 Account (personal / joint) can receive a maximum of HKD100 cash reward. (2) From Account Opening Date to 30 September 2017 (“Offer Period”), New FX2 Customers who trade FX and precious metal through Hang Seng Personal e-Banking or Manned Trading Hotline, are entitled to the 50% off trading spread offer depending on the relevant currency/precious metal pair and precious metal transaction commission will be waived. Offer is calculated based on a per account basis, and is not applicable for USD/HKD, foreign currency against HKD, cross currency, conditional orders and mark-cut orders. Offer is applicable to transactions completed under a normal market situation, while the Bank has the right to adjust the relevant trading spread without prior notice when it deems fit under an extremely volatile market situation or when the turnover is extremely low. (3) Offer cannot be used in conjunction with other FX2 - FX and Precious Metal Trading Services offers of the Bank. Terms and conditions apply to the offer, please visit hangseng.com/fx2offer for details. The Bank reserves the right to suspend, revise or terminate this promotion and the above related offers at any time and to amend the terms and conditions thereof from time to time without prior notice. The decision of the Bank on all matters relating to the above promotion and the related offer shall be final and binding on all parties concerned. The above offer is not and should not be considered as an offer or solicitation to deal in any of the investment product or service mentioned herein. Risk Warnings for FX2 - FX and Precious Metal Trading Services: • Foreign exchange and precious metal trading involves a high degree of risk. You may sustain a substantial or even total loss of your initial collateral. Under certain market conditions, you may find it difficult or impossible to liquidate a position of outstanding FX2 Trading Contracts. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit your loss at the designated price. In extreme circumstances whereby the market moves significantly against your positions, you may be required to make additional deposits or interest payments within a short period of time to maintain your positions. If you fail to provide the required deposits or interest payments immediately, your positions under all outstanding FX2 Trading Contracts may be closed out without prior notice. You should therefore carefully consider if foreign exchange and precious metal trading is suitable for you in light of your own financial position and investment objectives. • Renminbi (“RMB”) is subject to foreign exchange control by the PRC government. If your FX2 Trading Contract involves offshore RMB, you will be subject to foreign control and currency risks of RMB. • Investment involves risks. The above risk disclosure cannot disclose all the risks involved. You should read and understand all the relevant documents and risk disclosure (in particular, the Risk Disclosure Statement contained in the relevant application form) before making any investment decision. • The contents of this material have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to thismaterial. If you are uncertain of or do not understand the nature of and the risks involved in foreign exchange and precious metal trading, you should seek independent professional advice. 07 Exchange foreign currencies online A chance to win 2 round-trip flight tickets to Tokyo C ustomers who exchange foreign currency via Hang Seng Personal e-Banking or Hang Seng Personal Banking mobile app within Promotion Period can enjoy the following fabulous offer: A lucky draw chance to win 2 round-trip flight tickets to Tokyo for every online foreign currency exchange transaction at or over HKD5,000! No registration is required, no cap to the number of the lucky draw entries! How to exchange foreign currencies for traveling in a smart way? 1 Step Logon Hang Seng e-Banking and upon buying foreign currency at your desired rate, the TT exchange rate will be automatically applied Act Now! Enquiry: 2822 8233 2 Step Withdraw foreign currency notes from your foreign currency account at our branches when needed and enjoy your trip hangseng.com/forex Remarks: The Promotion Period is from 1 April 2017 to 30 June 2017 (“Promotion Period”). Terms and conditions apply. For details, please visit hangseng.com/forex, or contact the staff of Hang Seng Bank Limited (the “Bank”). The Bank reserves the right to suspend, revise or terminate this promotion and the above related offer at any time and to amend the terms and conditions thereof from time to time without prior notice. RMB Currency Risk: Renminbi ("RMB") is subject to exchange rate risk. Fluctuation in the exchange rate of RMB may result in losses in the event that the customer subsequently converts RMB into another currency (including Hong Kong Dollars). Exchange controls imposed by the relevant authorities may also adversely affect the applicable exchange rate. RMB is currently not freely convertible and conversion of RMB may be subject to certain policy, regulatory requirements and/or restrictions (which are subject to changes from time to time without notice). The actual conversion arrangement will depend on the policy, regulatory requirements and/or restrictions prevailing at the relevant time. Currency Risk: Foreign Exchange involves Exchange Rate Risk. Fluctuations in the exchange rate of a foreign currency may result in gains or losses in the event that the customer converts HKD to foreign currency or vice versa. Investment involves risks. Prices of investment products may go up or down and may become valueless. Past performance of investment products may not be indicative of future performance. Investors should not only base on this marketing material alone to make any investment decision, but should read the relevant investment product's offering documents and Risk Disclosure Statements in detail before making any investment decision. Provide you with quality medical cover W e understand that health and wealth are equally important, which is why we have brought you Hang Seng Bupa PreciousHealth Series – Excel Health Insurance Scheme. The Scheme provides you with quality medical protection with cover for hospital and surgical expenses, safeguarding the health of you and your family. The product features are as follows: • Less than HK$10 per day to enjoy up to HK$4 million medical protection • Apply with your family members to share an additional benefit of up to HK$2 million • Receive cashless treatment at hospitals with a medical card without the hassle of making payment or claims • Cover certain pre-existing conditions with additional subscription • The HealthPro Concierge Service provides professional healthcare support and assistance Online exclusive offers: From now till 31 May 2017, you can enjoy HK$600 GigaSports cash coupon upon successful online application of Excel Health Insurance Scheme via Hang Seng Bank website. Apply Now! Phone Application: 2998 9886 hangseng.com/medicaloffer Remarks: Terms and conditions apply, please visit hangseng.com/medicaloffer for details. The above information is a product summary of information for reference only. Please refer to the promotion leaflet/flyer and contract for the detailed coverage, exact terms and conditions and exclusions of the relevant health Insurance Schemes. The schemes are underwritten by Bupa (Asia) Limited (“Bupa”) which is authorized and regulated by the Commissioner of Insurance of the HKSAR. Hang Seng Bank Limited (the “Bank”) is an insurance agent authorised by Bupa for the exclusive distribution of the above schemes. Subscription will be payable to Bupa upon enrolment of Relevant Schemes. Bupa would provide the Bank the relevant commission and performance bonus in accordance to the selling of Relevant Schemes. The existing sales staff remuneration policy offered by the Bank would take into account various aspects of the staff performance but not solely on the sales amount. In respect of an eligible dispute arising between the the Bank and the customer out of the selling process or processing of the related transaction, the Bank is required to enter into a Financial Dispute Resolution Scheme process with the customer; however any dispute over the contractual terms or performance (claims and service) of the product should be resolved directly between Bupa and the customer. HealthPro Concierge Service is provided by Bupa. 08 Prestige Corner New perspective for wealth accumulation with safeguarding future I n order to enhance the potential return and protection, a brand new annuity product “FutureEnrich” launched in late 2016. Inflation counteracting elements are embedded in the design of the product, providing Guaranteed Monthly Income which grows by 3% per annum, plus nonguaranteed annual dividends and a lump-sum of non-guaranteed terminal dividend bolstering potential returns. Unemployment benefit, accidental death benefit and terminal illness benefit are embedded to enhance protection. Optional supplemental benefit includes cancer benefit, premium waiver benefit and payor’s benefit. Different policy terms, payment and income period, are offered to suit needs in different life stages. Beneficiary may opt to withdraw the Guaranteed Monthly Income until the end of Income Period for a stable source of income; or accumulate in policy account to earn interest until the end of Income Period for a potential growth to realize future planning. and planning for future together. Hang Seng Insurance was again awarded Hong Kong Business Magazine’s “Hong Kong Business High Flyers Outstanding Enterprise 2016 – Outstanding Insurance Company” award in January 2017. Under the wealth-and-health proposition, Hang Seng Insurance has been widely recognized that always strives to design innovative insurance products meeting the protection needs of customers Miss Libra Chan, Head of Life Insurance & Retail Banking and Wealth Management Insurance Strategy, represented Hang Seng Insurance to receive the award from the organizer From now till 30 June 2017, Prestige Banking customers can enjoy up to 5% premium discount in the first policy year (up to 8% for Prestige Signature customers). For details, please contact our branch staff at 2198 7838! Remarks: Eligible Customers who successfully enrolled in designated Life Insurance Plans during the period from 1 October 2016 to 31 December 2016 with the annualized premium reaching certain amount can enjoy the premium discount in the first policy year. Terms and conditions apply. For details, please contact Hang Seng Bank Limited (the “Bank”) branch staff or refer to relevant flyer. The Life Insurance Plans mentioned in this leaflet are underwritten by Hang Seng Insurance Company Limited (“Hang Seng Insurance”).The underwriter is authorized and regulated by the Commissioner of Insurance of the HKSAR. The Bank is an insurance agent authorized by Hang Seng Insurance and the insurance products are products of Hang Seng Insurance but not the Bank. In respect of an eligible dispute (as defined in the Terms of Reference for the Financial Dispute Resolution Centre in relation to the Financial Dispute Resolution Scheme) arising between the Bank and you out of the selling process or processing of the related insurance product transaction, the Bank will enter into a Financial Dispute Resolution Scheme process with you; however any dispute over the contractual terms of the insurance products should be resolved between Hang Seng Insurance and you directly. The above information is intended as a general summary of information and is for reference only. Please refer to the actual policy for the exact contents, terms, conditions and exclusions of the relevant plans. Home Care Plus Home Insurance Plan Perpetual 20% premium discount W ith Home Care Plus Home Insurance Plan, you can enjoy premium as low as $92 per month with key coverage includes up to $1 million household contents coverage and $5 million worldwide personal liability benefit, coverage also includes loss of rent, temporary accommodation and losses caused by unauthorised use of Hang Seng Credit Card. Fabulous Offers: Upon successful application of the Home Care Plus Home Insurance Plan from now till 31 May 2017, you can enjoy perpetual 20% premium discount and 1-month premium wavier in the first policy year. Customers will be rewarded up to 50x Cash Dollars or $300 Cash Rebates. Act now and submit online application with great convenience! 24-hour Application Hotline: 2998 9888 hangseng.com/home Remarks: Terms and conditions apply, please visit hangseng.com/home for details. The above information is intended as a general summary of information and is for reference only. Please refer to the relevant leaflet or factsheet for exact and detailed contents, terms, conditions and exclusions of the product plans, and the policy of the respective plans will be considered as final. Disclosure of Information: The Home Care Plus Home Insurance Plan (this “Plan”) is underwritten by QBE General Insurance (Hong Kong) Limited (“QBE”) which is authorised and regulated by the Commissioner of Insurance of the HKSAR. Hang Seng Bank Limited (the “Bank”) is an insurance agent authorised by QBE for the distribution of this Plan. Premiums will be payable to QBE upon application of this Plan. QBE would provide the Bank commission and performance bonus accordingly in respect of the selling of this Plan. The existing staff remuneration policy on sales offered by the Bank takes into account various aspects of the staff performance instead of focusing solely on the sales amount. In respect of an eligible dispute arising between the bank and the customer out of the selling process or processing of the related transaction, the Bank is required to enter into a Financial Dispute Resolution Scheme process with the customer; however any dispute over the contractual terms of the product should be resolved between directly QBE and the customer. The above information is a product summary for reference only. Please refer to the contract for detailed coverage, exclusions, terms and conditions. In the event of any discrepancy in respect of the meaning between the Chinese version and the English version, the English version shall prevail. 09 Prestige Privileges Hang Seng Prestige World Mastercard Presents exceptional travel rewards & privileges H ang Seng Prestige World Mastercard presents an array of exceptional travel rewards and privileges especially for travel lovers like you. From trip planning to worldwide excursion, every step of your journey awaits you with surprises and delights. (1) Travel Wow Reward at any Hong Kong Travel Agency / Travel Website Exclusively Earn From 1 April to 31 May 2017, spend with your Hang Seng Prestige World Mastercard at any Hong Kong travel agency(2) / travel website(2) to earn 15x Cash Dollars for a single net spending of HK$6,000 upon registration! Registration Hotline: 2998 6000 (Press “2” after language selection) 15% Instant Discount at Hotels.com(3) Fabulous Travel Privileges(4) • From now till 30 Sep 2017, enjoy additional 15% instant discount on selected hotels worldwide for your stays before 31 Dec 2017 at www.hotels.com/hase-hk with Hang Seng Prestige World Mastercard by entering Coupon Code “HASE15”! • Free upgrade to gold membership with Starwood Preferred Guest® to enjoy room upgrade and late check-out privileges at over 1,000 renowned hotels like Sheraton® and W® Hotels, plus 20% off at participating Starwood Hotels & Resorts. Hang Seng Mastercard® Credit Card hotel booking designated website: www.hotels.com/hase-hk • Enjoy complimentary breakfast, room upgrade and late check-out ( 5) privileges at Raffles Hotels & Resorts and Fairmont Hotels & Resorts worldwide. • Enjoy complimentary Hertz Gold Plus Rewards membership, 10% discount and free car upgrade privileges. Apply now to enjoy the privileges and services of Prestige World Mastercard. 24-hour Customer Service Hotline 2998 8111 hangseng.com/psewmc Remarks: (1) Travel Wow Reward is subject to the relevant terms and conditions, please visit hangseng.com/travelpromo for details. (2) Not applicable to transactions made at airlines and travel agencies / booking websites operated by airlines. (3) Terms and Conditions apply. For details, please visit hangseng.com/promotion3. (4) Terms and Conditions apply. For details, please visit www.mastercard.com.hk/world. (5) The room upgrade and late checkout privileges are subject to availability. To borrow or not to borrow? Borrow only if you can repay! 10