Wealth Management Product (distributed by HSBC China)

Wealth Management Product means a non-principal-protected wealth management product that a wealth management company pays income to investors in accordance with the agreed conditions and actual circumstances of investment income, without guaranteeing the payment of the principal and the level of income. Wealth Management Company means a wealth management subsidiary of a commercial bank formed in accordance with the law within the territory of the People's Republic of China or any other non-bank financial institution mainly engaged in wealth management business formed with the approval of the China Banking and Insurance Regulatory Commission.

Based on different investment nature, Wealth Management Products can be categorised into fixed-income wealth management products, equity wealth management products, commodity and financial derivative wealth management products and mixed wealth management products. For a fixed-income wealth management product, the proportion of investment in deposits, bonds and other debt assets shall not be less than 80%; for an equity wealth management product, the proportion of investment in equity assets shall not be less than 80%; for a commodity or financial derivative wealth management product, the proportion of investment in commodities or financial derivatives shall not be less than 80%; and for a mixed wealth management product, the investment is made in debt assets, equity assets and commodity and financial derivative assets, and the proportion of investment in any of the three types of assets does not reach the standards for the aforesaid three types of wealth management products.

Based on different operation modes, Wealth Management Products can be categorised into close-end wealth management products and open-end wealth management products. “Close-end wealth management products” means wealth management products that have certain maturity dates and cannot be subscribed for or redeemed by investors during the period from the date of establishment to the date of termination of the products. “Open-end wealth management products” means wealth management products that have non-fixed total number of shares and may be subscribed for or redeemed by investors as agreed upon on open days and at corresponding places during the period from the date of establishment to the date of termination of products.

According to different raising methods, Wealth Management Products can be categorised into publicly offered wealth management products and privately offered wealth management products. “Publicly offered wealth management products” means wealth management products offered by commercial banks to the general public. “Privately offered wealth management products” means wealth management products offered by commercial banks to qualified investors in a non-public manner. All Wealth Management Products distributed by HSBC (China) at present are publicly offered wealth management products.