This is mainly because financial instruments embedded in structured deposits can be traded in both directions. For example, assets such as futures and options can be short. The so-called short selling means selling and opening a position, after selling at a high point, buying and closing a position at a low point, thus profiting from the decline in asset prices.
In the process of choosing structured deposits, investors should pay attention to whether the structured deposits are guaranteed. Whether structured deposits can protect their capital depends on the ratio of time deposits to embedded financial instruments.
Structured deposits refer to financial products with certain risks in which investors deposit legally held RMB or foreign currency funds into banks and banks embed financial derivatives (including but not limited to forwards, swaps, options or futures). On the basis of ordinary deposits, investors' income is linked to financial or non-financial objects such as interest rate, exchange rate, stock price, commodity price, credit and index.
In fact, structured deposits are not ordinary deposits, and they are also different from bank financing. Structured deposits are embedded with financial derivatives on the basis of deposits, which are linked to fluctuations in interest rates, exchange rates and indexes. Let depositors get higher returns on the basis of taking certain risks.
According to the public data of the People's Bank of China, the scale of structured deposits in commercial banks was 10.98 trillion yuan in June of 20 19, the third time after the outbreak of structured deposits of 20 10 trillion yuan. Wind data shows that at the end of April last year, the total scale of structured deposits of large Chinese banks and small and medium-sized Chinese banks was 1 1. 13 trillion yuan. Among them, the scale of structured deposits of large Chinese banks is 3.77 trillion yuan, and the scale of structured deposits of small and medium-sized Chinese banks is 7.36 trillion yuan.
Basic meaning:
The so-called foreign exchange structured deposit refers to a business product in which some financial derivatives (mainly various options) are embedded on the basis of ordinary foreign exchange deposits, and linked with fluctuations in interest rates, exchange rates, indexes, etc., so that depositors can obtain higher returns on the basis of taking certain risks. Or associated with the credit status of the entity. It is a product transaction that combines fixed income products and options. Through the combination of options and fixed-income products, the investment income of structured products has a linkage effect with the price fluctuation of related assets linked to the target, which can achieve the function of capital preservation or higher return on investment to a certain extent.