Investment is Risky, what does “Risk” mean?

(i) Interest rate risk

(1)interest Rete Risk under the influence Of national economy, national Macro =economy. National Monetary policy. Fiscal policy And other factors. The market interest rate leval has the the possibility of fluctuation, since Most products are in the from of fixed interest Rates. The yield of the product will not increase with the market interest rate when the market interest rate rises during the product’s existence.

(ii) Policy risks

Products in the actual operation of the process, such as the national macro-policy, regulatory policies, relevant laws and regulations change, may affect the normal operation of products and honour.

Products in the actual operation the process. Such as the national Macro - policy. Regulatory policies, relevant laws and regulations Change. May affect the normal operation of products And honour

(iii) Reimbursement of risks

During the product lifetime. Many 

Uncontrollable factors.such as Macro =

Fconomic situation, financial policy And 

Market environment. May change 

Continuously, Which may adversely affect the 

Operation and financial situation of the 

Borrower. So that the borrower cannot pay the 

Principal And interest of the product oN time 

AND in full,

(iv) Risk of implementation of safeguard measures

Although the product is listed. The borrower has 

Already arranged the repayment safeguard 

Measure according to the reality situation to control and reduce the present period product the

Rick of payment. Dut during the product’s lifetime 

May decause the market, the policy. The alw and Regulations change and So no the proposed

Repayment safeguard measure not to carry out 

Completely, then affects the investor 's interest,

(v) Credit risk

In recent years. The borrower has Not had any 

Serious breach of contract With the bank or Major

Customers, In the future business operation. The

Borrower Will uphold the principle of integrity 

Management, strict implementation of the Contract agreement or commitment signed.

However, during the duration of the product, if 

There is a significant adverse change in the 

Borrower 's condition due to the Rich or 

Uncontrollable factors of borrower itself, the 

Borrower may not be able to repay the loan or 

Perform the business contract With the customer, 

WHICH will result in the deterioration of the credit 

Status of the borrower, thereby affecting the product’s honour, 

(vi) The risk of force majeure and unforeseen events