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Structured Products

Diversify for greater investment flexibility
  • Structured products are complex products and investors should exercise caution in relation to the product. These are structured investment products involving 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.
  • Investors should not make investment decision based on this marketing material alone.
  • Investment involves risk and past performance is not indicative of future performance. Please refer to the offering documents for further details, including fees and charges and risk factors.
  • The price of products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling products.
  • Issuer's Risk – Structured products are subject to both the actual and perceived measures of creditworthiness of the issuer. There is no assurance of protection against a default by the issuer in respect of the repayment obligations. In the worst case scenario, you might not be able to recover the principal and interest/coupon if the issuer defaults on the structured products.
  • Structured products are not equivalent to time deposits and are not protected deposits, and they are NOT protected by the Deposit Protection Scheme in Hong Kong. Deposit Plus, Equity-Linked Investment and some Private Placement Notes are not principal protected.

HSBC Jade structured products give you greater investment flexibility and an opportunity for higher potential returns under different market situations. Choose from numerous payout structures, such as capital protected and non-capital protected solutions, and a wide range of underlying choices, including equities, FX, commodities and interest rates. Investing in structured products is subject to eligibility and suitability criteria.

Explore structured products

Private Placement Notes (PPN)1

  • 100% capital protected equity-linked solution
  • Access to more than 250 Hong Kong and US-listed securities, covering major stocks and exchange-traded funds (ETFs)
  • Numerous payout structures to earn higher potential yield under different markets situations
  • Investment period ranging from 3 months to 2 years
  • Subject to the performance of the underlying assets, PPNs may result in gain / loss due to market fluctuations

Capital Protected Investment Deposits (CPI)

  • 100% protection of capital at maturity
  • Higher potential interest return while at the minimum, earn an interest close to a time deposit
  • Available in bullish / bearish view on the underlying currency pair
  • Investment period ranging from 3 months to 2 years
  • If the Bank becomes insolvent or defaults on its obligations under this product, you could suffer a total loss of your deposit amount. Please refer to "Credit risk of the Bank" under risk disclosure for details

Deposit Plus (DPS)

  • Generate potential interest usually higher than a time deposit
  • Chance to exchange preferred currency at a rate lower than the initial rate
  • Investment period ranging from 1 week to 3 months
  • Loss may occur if the deposit is converted to the linked currency

Equity-Linked Investment (ELI)

  • Generate potential interest usually higher than a time deposit
  • Chance to receive preferred stock at a price lower than the initial price
  • Be protected from market downside with an 'airbag' feature
  • Investment period ranging from 3 months to 2 years
  • Loss may occur if the investment is converted to the linked equity

Investing in financial products involves risk. Please refer to the Risk Disclosure section below, which contains important product risk disclosures.

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HSBC Jade is a privileged and personalised service for clients who maintain Total Relationship Balance of at least HKD7.8M with us in Hong Kong. Terms and Conditions apply.

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Remarks

1 PPN is exclusive for HSBC Jade clients who fulfil the Professional Investors requirements under the Securities and Futures (Professional Investor) Rules (Cap. 571D) ("PI Rules") only.

2 Online CPI service is exclusive for HSBC Jade clients and HSBC Premier customers only.

Risk Disclosure - Private Placement Notes (PPN)

The following risks should be read together with the other risks contained in the "Risk Factors" section in the relevant offering documents of the PPNs

  • You should note that the information contained in this website does NOT form part of the offering documents of our PPNs. You should read all the offering documents of our PPNs (including the offering memorandum, and the indicative term sheet) before deciding whether to invest in our PPNs. If you have doubt on the content of this website, you should seek independent professional advice.
  • Not a time deposit - PPN is NOT equivalent to, nor should it be treated as a substitute for, time deposit. It is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.
  • Not principal protected – some PPNs are not principal protected: you could lose all of your investment.
  • Investment Return Risk –It is possible that you may not receive any potential cash dividend amount for the entire scheduled tenor of the PPNs.
  • Re-investment risk - If our PPNs are early terminated, we will pay you the nominal amount of the PPNs (less any cash settlement expenses) and any accrued potential cash dividend amount calculated up to (and including) that call date. No further potential cash dividend amount will be payable following such early termination. Market conditions may have changed and you may not be able to enjoy the same rate of return if you re-invest these proceeds in other investments with similar risk parameters.
  • No collateral – PPNs are not secured on any of our assets or any collateral.
  • Limited market making arrangements are available and you may suffer a loss if you sell your PPNs before expiry - Our PPNs are designed to be held to their settlement date. Limited market making arrangements are available on a bi-weekly basis for all our PPNs. If you try to sell your PPNs before expiry, the amount you receive for each PPN may be substantially less than the issue price you paid for each PPN.
  • Not the same as investing in the reference asset – Investing in our PPNs is not the same as investing in the reference asset. Changes in the market price of the reference asset may not lead to a corresponding change in the market value of, or your potential payout under, the PPNs.
  • Not covered by Investor Compensation Fund – Our PPNs are not listed on any stock exchange and are not covered by the Investor Compensation Fund. There may not be any active or liquid secondary market.
  • Maximum loss upon HSBC’s default or insolvency – Our PPNs constitute general, unsecured and unsubordinated contractual obligations of HSBC as issuer and of no other person (including the ultimate holding company of our group, HSBC Holdings plc). When you buy our PPNs, you will be relying on HSBC’s creditworthiness. If HSBC becomes insolvent or defaults on its obligations under the PPNs, in the worst case scenario, you could lose all of your investment.
  • Risks relating to RMB - You should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government's control (for example, the PRC government regulates conversion between RMB and foreign currencies), which may adversely affect your return under this product when you convert RMB into your home currency. The value of your RMB-denominated PPNs will be subject to the risk of exchange rate fluctuation. If you choose to convert your RMB deposit to other currencies at an exchange rate that is less favourable than that in which you made your original conversion to RMB, you may suffer loss in principal. This product (if denominated in RMB) will be denominated and settled in RMB deliverable in Hong Kong, which is different from that of RMB deliverable in Mainland China.
  • You may, at settlement, receive physical delivery of reference asset(s).
  • Our PPNs may be terminated early by us according to the terms as set out in offering documents of our PPNs.
  • Our PPNs are structured investment products which are embedded with derivatives.
  • Investment returns (if any) not denominated in home currency are exposed to exchange rate fluctuations. Rates of exchange may cause the value of investments to go up or down.

 

HSBC Bank plc is the issuer and product arranger of our PPNs.

The information contained in this website have not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.

Investment involves risk. The price of structured products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling structured products.

You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial resources and circumstances.

Making available to you any advertisements, marketing or promotional materials, market information or other information relating to a product or service shall not, by itself, constitute solicitation of the sale or recommendation of any product or service. If you wish to receive solicitation or recommendation from us, please contact us and, where relevant, go through our suitability assessment before transacting.

 

Risk Disclosure – Capital Protected Investment (CPI)

  • Not a time deposit - CPI is NOT equivalent to, nor should it be treated as a substitute for, time deposit. It is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.
  • Derivatives risk - CPI is embedded with FX option(s). Option transactions involve risks. If the exchange rate of the currency pair performs against expectation at the fixing time on the fixing date, you can only earn the minimum payout of the structure.
  • Limited potential gain - The maximum potential gain is limited to higher payout on the deposit less the principal amount, when exchange rate of currency pair at fixing moves in line with your anticipated direction.
  • Not the same as buying the linked currency - Investing in CPI is not the same as buying the linked currency directly.
  • Market risk - The return of CPI will depend upon the exchange rates of currency pair against trigger rate at the fixing time on the fixing date. Movements in exchange rates can be unpredictable, sudden and drastic, and affected by complex political and economic factors. You must be prepared to take the risk of earning the lower payout/no return (if exchange rate performs against expectation) on the money invested.
  • Liquidity risk - CPI is designed to be held until maturity. You do not have a right to request early termination of this product before maturity. Under special circumstances, the Bank has the right to accept your early redemption request at its sole discretion and on a case by case basis. The Bank will provide an indication of the redemption price upon such request. Your return upon such early redemption will likely be lower than that if the deposit were held until maturity and may be negative.
  • Credit risk of the Bank - CPI is not secured by any collateral. When you invest in this product, you will be relying on the Bank's creditworthiness. If the Bank becomes insolvent or defaults on its obligations under this product, you can only claim as an unsecured creditor of the Bank. In the worst case, you could suffer a total loss of your deposit amount.
  • Currency risk - If the deposit currency is not your home currency, and you choose to convert it back to your home currency upon maturity, you may make a gain or loss due to exchange rate fluctuations.
  • Risk of early termination by the Bank - The Bank shall have the discretion to uplift a CPI or any part thereof prior to the Maturity Date (subject to the deduction of such break costs or the addition of such proportion of the return or redemption amount, which may result in a figure less than the original principal amount of the CPI) if it determines, in its sole discretion, that this is necessary or appropriate to protect any right of the Bank to combine accounts or set-off, or any security interest, or to protect the Customer's interests.
  • Risks relating to RMB - You should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government's control (for example, the PRC government regulates conversion between RMB and foreign currencies), which may adversely affect your return under this product when you convert RMB into your home currency. The value of your RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your RMB deposit to other currencies at an exchange rate that is less favourable than that in which you made your original conversion to RMB, you may suffer loss in principal. This product (if denominated in RMB) will be denominated and settled in RMB deliverable in Hong Kong, which is different from that of RMB deliverable in Mainland China.

 

Risk Disclosure – Deposits Plus (DPS)

  • Not a time deposit – DPS is NOT equivalent to, nor should it be treated as a substitute for, time deposit. It is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.
  • Derivatives risk - DPS is embedded with FX option(s). Option transactions involve risks, especially when selling an option. Although the premium received from selling an option is fixed, you may sustain a loss well in excess of such premium amount, and your loss could be substantial.
  • Limited potential gain - The maximum potential gain is limited to the interest on the deposit.
  • Maximum potential loss - DPS is not principal protected. You must be prepared to incur loss as a result of depreciation in the value of the currency paid (if the deposit is converted to the linked currency at maturity). Such loss may offset the interest earned on the deposit and may even result in losses in the principal amount of the deposit.
  • Not the same as buying the linked currency - Investing in DPS is not the same as buying the linked currency directly.
  • Market risk - The net return of DPS will depend upon the exchange rate of the deposit currency against the linked currency prevailing at the deposit fixing time on the deposit fixing date. Movements in exchange rates can be unpredictable, sudden and drastic, and affected by complex political and economic factors.
  • Liquidity risk - DPS is designed to be held until maturity. You do not have a right to request early termination of this product before maturity. Under special circumstances, the Bank has the right to accept your early redemption request at its sole discretion and on a case by case basis. The Bank will provide an indication of the redemption price upon such request. Your return upon such early redemption will likely be lower than that if the deposit were held until maturity and may be negative.
  • Credit risk of the Bank - DPS is not secured by any collateral. When you invest in this product, you will be relying on the Bank's creditworthiness. If the Bank becomes insolvent or defaults on its obligations under this product, you can only claim as an unsecured creditor of the Bank. In the worst case, you could suffer a total loss of your deposit amount.
  • Currency risk - If the deposit currency and/or linked currency is not your home currency, and you choose to convert it back to your home currency upon maturity, you may make a gain or loss due to exchange rate fluctuations.
  • Risks relating to RMB - You should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government's control (for example, the PRC government regulates conversion between RMB and foreign currencies), which may adversely affect your return under this product. The value of your investment will be subject to the risk of exchange rate fluctuation. In case you receive RMB as Linked Currency at maturity and you choose to convert your maturity proceed to other currencies, you may suffer loss in principal. This product will be denominated (if Deposit Currency being RMB) and settled (when receive RMB at maturity) in RMB deliverable in Hong Kong, which is different from that of RMB deliverable in Mainland China.

 

Risk Disclosure – Equity Linked Investments (ELI)

The following risks should be read together with the other risks contained in the "Risk Warnings" section in the relevant offering documents of the ELIs

  • You should note that the information contained in this website does NOT form part of the offering documents of our ELIs. You should read all the offering documents of our ELIs (including the programme memorandum, the financial disclosure document, the relevant product booklet and the indicative term sheet and any addendum to any of such documents) before deciding whether to invest in our ELIs. If you have doubt on the content of this website, you should seek independent professional advice.
  • Not a time deposit - ELI is NOT equivalent to, nor should it be treated as a substitute for, time deposit. It is NOT a protected deposit and is NOT protected by the Deposit Protection Scheme in Hong Kong.
  • Not principal protected – ELIs are not principal protected: you could lose all of your investment.
  • Limited potential gain – you may not receive any potential cash dividend amount - The maximum potential gain under this product is capped at an amount equal to the sum of the difference between the issue price and the nominal amount of the ELIs (if any) (less any cash settlement expenses) and the maximum periodic potential cash dividend amount(s) payable during the scheduled tenor (i.e the period from (and including) the issue date to (and including) the settlement date) of the ELIs. It is possible that you may not receive any potential cash dividend amount for the entire scheduled tenor of the ELIs.
  • Re-investment risk - If our ELIs are early terminated, we will pay you the nominal amount of the ELIs (less any cash settlement expenses) and any accrued potential cash dividend amount calculated up to (and including) that call date. No further potential cash dividend amount will be payable following such early termination. Market conditions may have changed and you may not be able to enjoy the same rate of return if you re-invest these proceeds in other investments with similar risk parameters.
  • No collateral – ELIs are not secured on any of our assets or any collateral.
  • Limited market making arrangements are available and you may suffer a loss if you sell your ELIs before expiry - Our ELIs are designed to be held to their settlement date. Limited market making arrangements are available on a bi-weekly basis for all our ELIs. If you try to sell your ELIs before expiry, the amount you receive for each ELI may be substantially less than the issue price you paid for each ELI.
  • Not the same as investing in the reference asset – Investing in our ELIs is not the same as investing in the reference asset. Changes in the market price of the reference asset may not lead to a corresponding change in the market value of, or your potential payout under, the ELIs.
  • Not covered by Investor Compensation Fund – Our ELIs are not listed on any stock exchange and are not covered by the Investor Compensation Fund. There may not be any active or liquid secondary market.
  • Maximum loss upon HSBC’s default or insolvency – Our ELIs constitute general, unsecured and unsubordinated contractual obligations of HSBC as issuer and of no other person (including the ultimate holding company of our group, HSBC Holdings plc). When you buy our ELIs, you will be relying on HSBC’s creditworthiness. If HSBC becomes insolvent or defaults on its obligations under the ELIs, in the worst case scenario, you could lose all of your investment.
  • Risks relating to RMB - You should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government's control (for example, the PRC government regulates conversion between RMB and foreign currencies), which may adversely affect your return under this product when you convert RMB into your home currency. The value of your RMB-denominated ELIs will be subject to the risk of exchange rate fluctuation. If you choose to convert your RMB deposit to other currencies at an exchange rate that is less favourable than that in which you made your original conversion to RMB, you may suffer loss in principal. This product (if denominated in RMB) will be denominated and settled in RMB deliverable in Hong Kong, which is different from that of RMB deliverable in Mainland China.
  • You may, at settlement, receive physical delivery of reference asset(s).
  • Our ELIs may be terminated early by us according to the terms as set out in offering documents of our ELIs.
  • Our ELIs are structured investment products which are embedded with derivatives.
  • Investment returns (if any) not denominated in home currency are exposed to exchange rate fluctuations. Rates of exchange may cause the value of investments to go up or down.

 

The Hongkong and Shanghai Banking Corporation Limited is the issuer and product arranger of our ELIs.

The information contained in this website have not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.

Investment involves risk. The price of structured products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling structured products.

You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial resources and circumstances.

The information contained in this website does not constitute a solicitation for making any deposit or an offer for the purchase or sale or investment in any products.

  • The information shown in this website is neither a recommendation, an offer, nor a solicitation for any investment product or service. Investment involves risk. You should carefully consider whether any investment product or service mentioned herein is appropriate for you in view of your personal circumstances. Past performance is no guide to future performance. Investors should refer to the individual product explanatory memorandum or offering document for further details and risks involved. The price of investment products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling investment products.
  • Structured Products involve derivatives. The investment decision is yours but you should not invest in structured products 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.
  • Structured product is NOT equivalent to a time deposit. It is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.
  • Issuer's Risk - you rely on the issuer's creditworthiness. The products are subject to both the actual and perceived measures of the credit worthiness of the issuer and there is no assurance of protection against a default by the issuer in respect of its payment obligations.
  • In the worst case scenario (e.g. insolvency of issuer), the investor may get nothing back and the potential maximum loss could be 100% of investment amount and no coupon received.
  • Structured products are not available for customers who are US citizen / with US nationality, are US resident or US tax payer, or have a US address (e.g. primary mailing, residence or business address in the US).

 

Private Placement Notes, Capital Protected Investment and Deposit Plus are not regulated by the Securities and Futures Commission (the 'SFC').  The offering documents of Private Placement Notes, Capital Protected Investment and Deposit Plus have not been reviewed by the SFC or any regulatory authority in Hong Kong.  You should exercise caution when buying any structured products.

The Securities and Futures Commission (the ‘SFC’) has authorized the Equity Linked Investments and offering documents of Equity Linked Investments. The SFC’s authorization does not imply official recommendation or endorsement of Equity Linked Investments, nor does it guarantee the commercial merits of Equity Linked Investments or its performance.