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a man sitting on the couch and using his laptop; image used for HSBC ELI

Equity-linked investments (ELI)

Tap into the potential of equity market movements and earn a higher potential income, even if the equity market is range-bound.

  • Equity Linked Investment is a complex product and you should exercise caution in relation to the product. This is a structured product which may involve derivatives. The investment decision is yours but you should not invest unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
  • An equity-linked investment (ELI) is a structured investment product. It is NOT a protected deposit and it is NOT protected under the Deposit Protection Scheme in Hong Kong.
  • The price of structured products may move up or down. Losses as well as profits may be incurred as a result of buying and selling structured products.
  • You should not make investment decisions based on marketing materials alone.
  • Investment involves risk. Past performance is not indicative of future performance.

Please see the detailed risk disclosures. Kindly refer to the offering documents for further details including fees, charges and risk factors.

Why invest in an ELI

Did you know there are other ways to capture potential wealth opportunities even when the market is volatile or stagnant?

An ELI can give you the chance to:

  • generate potential investment returns that are linked to the performance of the underlying equities

  • buy stocks at a discount or a price lower than the initial spot price

a man sitting in a restaurant and using his laptop; image used for HSBC ELI
a man sitting in a office and looking at his laptop and tablet; image used for HSBC ELI

Key benefits of investing in an ELI

  • Earn higher potential returns than with conventional time deposits, depending on the movement of the underlying equities

  • An alternative for those who may find it hard to time the market

  • Cushions you from negative market conditions with a knock-in (airbag) feature

  • Offers you flexible tenors ranging from 3 months to 2 years

How does an ELI work?

An equity-linked investment (ELI) is a type of structured product. Its investment return is directly linked to the performance of a single underlying equity or a basket of up to 4 underlying equities.

An ELI is typically a short to medium-term investment product that may provide potential yield enhancement. On top of this potential interest, investors could either receive 100% of their initial principal investment or stock delivery of the worst-performing stock at a discounted price lower than the initial spot price upon maturity.

But in the worst case scenario, the stock price can drop to 0 which means that the stock investors receive can be worth nothing.

Scenarios you may encounter when investing in ELIs

ELIs can seem complex but these examples will help you understand what scenarios you may run into when you invest in an ELI and what it will mean for your investment.

a line chart describing all the possible scenarios of investing in ELI;  image used for HSBC ELI
A line chart describing autocall condition is satisfied; image used for HSBC ELI

If the worst-performing reference asset price is at or above the call price on the call date, then the ELI will be terminated early. You will receive:

  • a full redemption of the invested amount
  • the potential cash dividend amount up to the call date

Fees

  • No subscription charge
  • If the underlying stock is to be delivered on the settlement date, the following charges will apply:
    1. a stamp duty of 0.13% of the transaction amount of the underlying stock deliverable at the value of the exercise price (rounded up to the nearest dollar).
    2. a deposit transaction charge of HKD5 per board lot of the underlying stock deposited into your investment services/securities account, at a minimum charge of HKD30 and maximum of HKD200
  • For other securities services, the standard securities charges apply as advised by HSBC upon account opening or as notified by HSBC periodically with reasonable prior notice given before the revisions. If you have any questions, please visit us at your nearest branch.

Ready to invest into an ELI?

If you've already got an investment account with us, you can log on to online banking to place an order for an ELI.

Need help with investments? Give us a call.

(852) 2233 3733

Lines are open between 9am-6pm Mondays to Fridays, and 9am-1pm on Saturdays.

FAQs and useful information

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