HSBC France € 20,000,000,000 Euro Medium Term Note Programme

41
(viii)
if a Relevant Factor is subject to a barrier or target or its operation is limited to a specified range, its
effect on the value of the Notes maybe accordingly limited, possibly preventing an increase in such
value which would otherwise apply.
Fluctuations in the value of the Underlying
Fluctuations in the price, value and/or level of Relevant Assets and Relevant Factors will affect the value of
Notes. Also, due to the character of the particular markets on which Reference Assets may be traded, the absence
of last sale information and the limited availability of quotations for such Reference Assets may make it difficult
for many investors to obtain timely, accurate data for the price or yield of such Reference Assets. Purchasers of
Notes risk losing their entire investment if the value of the relevant underlying basis of reference does not move
in the anticipated direction.
No Ownership Rights
An investment in Notes relating to a Reference Asset or Relevant Factor is not the same as an investment in the
Reference Asset and does not confer any legal or beneficial interest in the Reference Asset or any voting rights,
rights to receive dividends or other rights that a holder of a Reference Asset may have.
Certain Considerations Regarding Hedging
Prospective purchasers intending to purchase Notes to hedge against the market risk associated with investing in
a Reference Asset should recognise the complexities of utilising Notes in this manner. For example, the value of
the Notes may not exactly correlate with the value of the Reference Asset to which they relate. Due to fluctuating
supply and demand for the Notes, there is no assurance that their value will correlate with movements of the
Reference Asset. For these reasons, among others, it may not be possible to purchase or liquidate securities in a
portfolio at the prices used to calculate the value of any relevant Reference Asset.
Potential Conflicts of Interest
The Issuer or affiliates of the Issuer may from time to time advise the issuers of or obligors in respect of
Reference Assets regarding transactions to be entered into by them, or engage in transactions involving
Reference Assets for their proprietary accounts and for other accounts under their management. Any such
transactions may have a positive or negative effect on the value of such Reference Assets and therefore on the
value of any Notes to which they relate. Certain affiliates of the Issuer will also be the counterparty to the hedge
of the Issuer's obligations under an issue of Notes. Accordingly, certain conflicts of interest may arise both
among the Issuer or these affiliates and between the interests of the Issuer or these affiliates and the interests of
holders of Notes.
Disruption Event
If the Calculation Agent determines that a payment disruption event or market disruption event has occurred, any
consequential postponement of or any alternative provisions for valuation provided in any Notes may have an
adverse effect on the value of such Notes.
Value of Baskets
The value of a basket of Reference Assets and/or Relevant Factors to which any Notes relate may be affected by
the number of Reference Assets or Relevant Factors included in such basket. Generally, the value of a basket that
includes Reference Assets from a number of companies or obligors or which gives relatively equal weight to
each Reference Asset will be less affected by changes in the value of any particular Reference Asset included
therein than a basket that includes fewer Reference Assets and/or Relevant Factors or that gives greater weight to
some Reference Assets and/or Relevant Factors. In addition, if the Reference Assets and/or Relevant Factors
included in a basket are all in or relate to a particular industry, the value of such a basket will be more affected by
the economic, financial and other factors affecting that industry than if the Reference Assets or Relevant Factors
included in the basket relate to various industries that are affected by different economic, financial or other
factors or are affected by such factors in different ways.