Mobile Banking Launches FX Plus/Margin FX & Precious Metal Account Opening Service

To help customers to grasp every investment opportunity in different market condition, ICBC(Asia) has introduced FX Plus/Margin FX & Precious Metal account opening service on 29 Nov. 2018. It allows you to have faster and simpler account opening service.

You can start the account application procedure directly by logging into the Mobile Banking and entering “FX Plus/Margin Trading” or “Application Center” at the homepage. Customers can choose to apply FX Plus - FX & Precious Metal account (Product risk level: 3) or Margin FX & Precious Metal account (Product risk level: 5), providing greater flexibility for your investment account opening. The mobile account application procedures are simple and easy. To submit the account application, you only need to provide your personal information, complete the self-certification form of tax residency status and answer the product-related assessment questions. It allows you to enjoy one-stop account opening and investment transaction services at anytime and anywhere.

Remark:

You cannot use the account for transaction immediately after the mobile account application. We will contact you within 2-3 working days in order to confirm your application and explain the product-related risk for you.

Volatility of FX prices. Buying or selling price of currencies for FX Trading is quoted by us and calculated with reference to the prevailing market exchange rates and our profit margins. The prevailing market price of currency can be very volatile due to a variety of unpredictable factors. Prices float freely in accordance with supply and demand within relevant markets and respond quickly to political and economic applications.

Not in physical form of precious metal. Precious Metal Trading does NOT involve any physical delivery of precious metals. You do not have any rights, ownership and possession of any physical precious metals. Allocation of precious metals in your FX & Precious Metal trading account is notional and for the sole purpose of determining the cash value of the account. The investment return is calculated with reference to the prevailing market prices of the relevant precious metals.

Volatility of precious metal prices. Buying or selling prices of precious metals for Precious Metal Trading is quoted by us and calculated with reference to the prevailing market prices of precious metals ( if applicable, prices are subject to the prevailing exchange rate and our profit margins). The prevailing market price of precious metals can be very volatile due to a variety of unpredictable factors. Precious metals are physical commodities which are limited in supply. Commodity markets are generally subject to greater risks than other markets, including potentially significant legal risks. Precious metals are vital industrial commodities. The price of precious metals may be highly volatile. Prices float freely in accordance with supply and demand of the relevant markets and respond quickly to political and economic applications. Price movements of precious metals are influenced by, among other things, interest rates, exchange rates, inflation, changing market supply and demand dynamics, fiscal / monetary programs, exchange control programs, government policies, international political events, military events, and economic events/policies. Precious metals are often extracted by less developed countries. Political changes may result in constitutional and social tensions, and in some cases these may result in instability and dissent. Political or economic instability may affect investor confidence in precious metals, which could have negative impacts on prices and/or value of the precious metals.

Exchange rate risk. You should note that trades are executed at the prices quoted in the currency you have selected, but settlement of such trades must be made in USD. If your trade requires currency conversion, you will be exposed to fluctuations in exchange rate between the currency selected and USD. Any transaction involving foreign currencies, include FX trades, involves additional risks not common to transactions denominated entirely in your domestic currency. Foreign exchange rates can be highly volatile and can be affected by factors such as changes in political and economic policy (both domestic and overseas), political instability, wars, natural disasters and global market movements.

Investment risk. Investment involves risks and the prevailing market prices of FX/precious metals may fluctuate. The value of your positions in your margin trading account may go up or down, sometimes dramatically, and may even become valueless. In the worst case scenario, you may suffer substantial or even unlimited loss.

Credit risk of the Bank. Industrial and Commercial Bank of China (Asia) Limited (the “Bank”, “ICBC (Asia)”, “we” or “us”), which is subject to the prudential regulation of the Hong Kong Monetary Authority, is your counterparty in the margin trades. There is no assurance of protection against a default by the Bank with respect to its payment obligations. If you enter into the margin trades, you rely upon the creditworthiness of the Bank and of no other person. If the Bank becomes insolvent or defaults on its obligations under the trades, you can only claim as the Bank’s unsecured creditor. In the worst case scenario, you may lose your entire investment irrespective of the performance of the prices and the terms of the services.

Early termination risk by us. We may terminate your account upon notice if an event of default occurs on your part. In such a scenario, all outstanding positions will be closed out at prices determined by us in our good faith based on the prevailing circumstances, you may suffer substantial or even unlimited loss.

Risk relating to our hedging activities. We may enter into hedging transactions, which typically involve the establishment of long and/or short positions in FX/precious metals, with our respective hedging counterparties in the market. If the size of hedging transactions are substantial, it is possible that these activities could adversely affect the prevailing market price of FX/precious metals. As such, FX/precious metal buying or selling prices for FX trading which are calculated with reference to the prevailing market price of FX/precious metals will be affected as well. The value of your positions in your trading account may fluctuate.

Set-off and lien. We have the right to combine or consolidate any standing balances to the credit of your trading account to set off against any indebtedness owed by you to us.

Conflicts of interest. Potential and actual conflicts of interest may arise from the different roles played by us and our subsidiaries and affiliates in connection with FX & Precious Metal Trading. Our economic interests in each role may be adverse to your interest in these trading.

Force majeure events. We are not liable for any failure or delay in meeting obligations due to any causes beyond our control which shall include local or international happenings such as Acts of God, government act, flood, fire, civil commotion, strike, war or any other causes beyond the reasonable control of us, mechanical failure, power failure, malfunction, breakdown, interruption or inadequacy of equipment/ installation or other causes which result or is likely to result in the erratic behavior of FX/precious metal prices, the closure of the markets or exchanges of FX/precious metal or any other cause affecting the operation of your trading account.

You should read and understand the terms and conditions for FX & Precious Metal trading services and the information available for such services before you trade in any FX and precious metal transactions.

To borrow or not to borrow? Borrow only if you can repay!