Product Features
Higher Potential Return
According to the performance of the linked stock, investors have chance to receive a higher potential return.
Extensive Investment Combination
More than 100 stocks can be linked, and multiple currencies can be selected as the investment principal.
Flexible Investment Period
The investment period ranges from 1 to 11 months, and the minimum investment amount is equivalent to HK$100,000.
Airbag Mechanism
Airbag is a special feature often made available in some equity linked products. The settlement arrangement will depend on whether the airbag mechanism is triggered on the maturity date.
Multi Trading Channels
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Investment involves risks.
Terms and conditions apply to the relevant products, services and offers.
Terms and conditions apply to the relevant products, services and offers.
Investment Amount
HK$100,000
Coupon Rate
9% p.a
Initial Price
HK$50
Put Strike Price
HK$48
(96% of the Initial Price)
(96% of the Initial Price)
Autocall Price
HK$52
(104% of the Initial Price)
(104% of the Initial Price)
Knock-in Price (Airbag)
HK$43
(86% of the Initial Price)
(86% of the Initial Price)
Issue Date
This is the date as specified in the relevant Term Sheet on which we issue the series of our ELIs. The Issue Date will be set as a number of Business Days, being 3 to 10 Business Days after the Trade Date as specified in the relevant Term Sheet
Investment Period
This is the period between the date on which all the terms and conditions of our ELIs you wish to purchase are finalised and the date on which the settlement at expiry is scheduled to be determined, i.e. the period from the scheduled Trade Date to the scheduled Valuation Date (both days inclusive)
Trade Date
This is the date on which all terms applicable to our ELIs are finalised and we will specify the Trade Date (which will be the last day of the Offer Period) in the relevant Term Sheet. We will record the Initial Price of the Linked Stock on the Trade Date
Observation Period
This is a period in respect of which a Potential Distribution Amount (if any) may be payable. An Observation Period commences from but excluding the relevant Period Start Date to and including the relevant Period End Date, as specified in the relevant Term Sheet
Valuation Date
If our ELIs are not early terminated, this is the date on which the Closing Price of the Linked Stock is recorded and the mode of settlement at expiry of our ELIs is determined. The relevant Term Sheet will specify the scheduled Valuation Date. The Valuation Date is subject to postponement for up to 8 Scheduled Trading Days as a result of a Disrupted Day as described in the General Terms and Conditions
Period End Date
It means each date specified as such in the Term Sheet
Initial Price
Initial Price is the closing price of the linked stock on the trade date of the ELI
Put Strike Price
Put Strike Price is usually set at a specified percentage that is below the Initial Price, it is the benchmark price used to determine the Stock Amount on the Settlement Date
Autocall Price
The ELI will be terminated before maturity if the closing price of the linked stock is at or above the Autocall Price within the Autocall Period. You will receive the Investment Amount together with Potential Distribution Amount accrued up to the relevant Autocall Date
Knock-in Price (Airbag)
If the closing price of the linked stock is below Knock-in Price(Airbag) on the Valuation Date, you will receive physical shares of the linked stock at Put Strike Price together with the cash payment of fractional shares and Potential Distribution Amount
The closing price of the linked stock is at or above the Autocall Price during the Autocall Period
Generally, the Autocall feature will be effective from the 1st Period End Date. As the closing price of linked stock is HK$53 on the 5th trading day of 2nd Observation Period which is higher than Autocall Price of HK$52. The Autocall feature is triggered. You will receive the Investment Amount together with Potential Distribution Amount accrued up to the relevant Autocall Date.
Date
5th trading day of
2nd Observation Period
2nd Observation Period
Autocall Price > The closing price of the linked stock
HK$53 > HK$52
You will receive all below
Investment Amount
HK$100,000
Total Potential Distribution Amount
HK$928.57
Total Potential Distribution Amount
= Investment Amount*(Coupon Rate/12) + Investment Amount*(Coupon Rate/12)*(5/21)^
= HK$(100,000*(9%/12) + 100,000*(9%/12)*(5/21))
= HK$(750 + 178.57)
= HK$928.57
^Assuming there are 21 trading days in 2nd Observation Period
= Investment Amount*(Coupon Rate/12) + Investment Amount*(Coupon Rate/12)*(5/21)^
= HK$(100,000*(9%/12) + 100,000*(9%/12)*(5/21))
= HK$(750 + 178.57)
= HK$928.57
^Assuming there are 21 trading days in 2nd Observation Period
The closing price of the linked stock is above the Knock-in Price (Airbag) on the Valuation Date
The closing price of the linked stock is HK$44 on the Valuation Date which is above the Knock-in Price HK$43. Thus, you will receive Investment Amount together with Potential Distribution Amount.
Date
On the Valuation Date
Put Strike Price
HK$48
The closing price of the linked stock on the Valuation Date > Knock-in Price(Airbag)
HK$44 > HK$43
You will receive all below
Investment Amount
HK$100,000
Total Potential Distribution Amount
HK$3,000
Total Potential Distribution Amount
= Investment Amount*(Coupon Rate/12)*4
= HK$100,000*(9%/12)*4
= HK$3,000
= Investment Amount*(Coupon Rate/12)*4
= HK$100,000*(9%/12)*4
= HK$3,000
The closing price of the linked stock is below Knock-in Price (Airbag) on the Valuation Date
The closing price of the linked stock drops to HK$41 on the Valuation Date which is below the Knock-in Price HK$43. Thus, you will receive physical shares of the linked stock at the Put Strike Price together with the cash payment of fractional shares and Potential Distribution Amount.
Date
On the Valuation Date
Put Strike Price
HK$48
The closing price of the linked stock on the Valuation Date < Knock-in Price (Airbag)
HK$41 < HK$43
You will receive all below
Stock amount
2,080 shares*
The cash payment of fractional shares
HK$136.7
Total Potential Distribution Amount
HK$3,000
*Assuming the stock price is HK$41, the stock value would be approximately HK$85,280
Total Potential Distribution Amount
= Investment Amount*(Coupon Rate/12)*4
= HK$100,000*(9%/12)*4
= HK$3,000
= Investment Amount*(Coupon Rate/12)*4
= HK$100,000*(9%/12)*4
= HK$3,000
Stock amount calculated as follows:
The total number of shares you received at the Put Strike Price
Stock amount per ELI#
= HK$10,000/HK$48
= 208.3333 shares
Total stock amount
= 208 shares*(HK$100,000/HK$10,000)
= 2,080 shares
The total number of shares you received at the Put Strike Price
Stock amount per ELI#
= HK$10,000/HK$48
= 208.3333 shares
Total stock amount
= 208 shares*(HK$100,000/HK$10,000)
= 2,080 shares
The cash payment of fractional shares calculated as follows:
Stock amount per ELI#
= HK$10,000/HK$48
= 208.3333 shares
The cash payment of fractional shares per ELI (Calculated based on the closing price on the Valuation Date)
= 0.3333 shares*HK$41
= HK$13.67
The cash payment of fractional shares
= HK$13.67*(HK$100,000/HK$10,000)
= HK$136.7
Stock amount per ELI#
= HK$10,000/HK$48
= 208.3333 shares
The cash payment of fractional shares per ELI (Calculated based on the closing price on the Valuation Date)
= 0.3333 shares*HK$41
= HK$13.67
The cash payment of fractional shares
= HK$13.67*(HK$100,000/HK$10,000)
= HK$136.7
#The stock amount to be received is calculated based on the nominal unit HK$10,000 per ELI. The stock amount shall be integral number. If the stock amount comprises any fractional shares, the fractional shares will be settled in cash by reference to the closing price of the linked stock on the Valuation Date.
The above illustrative example and the scenario analysis are prepared with hypothetical data, and not based on the past performance of the stock as stated herein. They are for reference only and do not guarantee or represent the final returns of the ELI. The above hypothetical example should not be relied on as an indication of the actual performance of the linked stock or this product. You should not rely on this example when making an investment decision.
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1Log into Mobile Banking, subscribe for Equity Linked Investments
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