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Give you an opportunity to maximize interest returns through equity market movements

When to invest in Equity Linked Account?

To enhance the potential yield of your deposit, you can take advantage of Equity Linked Account when you:

anticipate that the performance of your selected Underlying Stock will be relatively stable or favourable at the end of your deposit term
would like to enjoy premium interest rate and willing to receive the Principal in either cash or Underlying Stocks at maturity

How does it work?

To set up an Equity Linked Account, you need to consider and select:

an Underlying Stock
number of shares of the Underlying Stock
a deposit tenure ranging from 1 to 12 months

Standard Chartered Bank (Hong Kong) Limited (the "Bank") will quote a premium interest rate package for your Principal according to your selection.

At the end of the Trade Date, the Bank will set up the Equity Linked Account for you, based on the Closing Price of your selected Underlying Stock.

Upon maturity, you will receive the interest in cash, and the Principal will be paid in either cash or Underlying Stocks based on the Closing Price of the Underlying Stock on Valuation Date:

If it is at or above the Target Price, you will receive your Principal in cash; or
If it is below the Target Price, you will receive the selected number of shares of the Underlying Stock

An illustration example for investing in Equity Linked Account

On 13 June 2007, you request to set up an Equity Linked Account:

(1) You select:

Underlying Stock	HKEx (388) (Spot Price at the time of order placement is HK$90.00 per share)
No. of Shares*	3,000 shares
Tenure	32 days

* The number of Underlying Shares must be in board lot size.

(2) Based on your selection, the Bank will quote an interest rate package for you including the following :

Interest Rate**(p.a.)	11.21%
Target Price Percentage	96%
Limit Order Price	HKD94.29 per share

**The interest rate of the Equity Linked Account is 11.21% p.a. is calculated based on 1 month’s HKD time deposit rate of Standard Chartered Bank (Hong Kong) Limited and the implied volatility of HKEx at 26.10% sourced from Bloomberg on 13 June 2007.

(3) At the end of Trade Date (13 June 2007), the Closing Price of HKEx is HK$90.60 per share. The Bank will set up the Equity Linked Account for you:

Target Price	HKD86.976 per share (HKD90.60 x 96%)
Principal	HKD260,928.00 (HKD86.976 X 3,000 shares)
Trade Date	13 June 2007
Start Date	15 June 2007
Valuation Date	13 July 2007
Maturity Date	17 July 2007

Return and Risk Analysis of Equity Linked Account

Scenario	Closing Price at Valuation Date	Principal and Interest on Maturity Date	Return and Risk Analysis
Scenario	Closing Price at Valuation Date	Principal and Interest on Maturity Date	Total Return (Based on Market Value of Underlying Stock at Valuation Date)	Net Return (Annualised Rate)
1. The Underlying Stock closes above the Target Price	HKD90.00	Receive Principal and Interest of HKD263,492.39 in cash	N/A	Gain HKD2,564.39 (11.21%p.a.)
2. The Underlying Stock closes below the Target Price	HKD86.50	Receive Principal in 3,000 shares of HKEx and Interest of HKD2,564.39 in cash	HKD262,064.39 (3,000 shares x HKD86.50 + interest of HK2,564.39)	Gain HKD1,136.39 (4.97%p.a.)
3. The Underlying Stock closes below the Target Price	HKD86.1212		HKD260,928.00 (3,000 shares x HKD86.1212 + interest of HKD2,564.39)	0 (0% p.a.)
4. The Underlying Stock closes below Target Price	HKD86.00		HKD260,564.39 (3,000 shares x HKD86.00 + interest of HKD2,564.39)	Loss HKD363.61 (-1.59% p.a.)
5. The Underlying Stock closes at 0	HKD0.00		HKD2,564.39 (3,000 shares x HKD0.00 + interest of HKD2,564.39)	Loss HKD258,363.61 (-1,129.41% p.a.)

Note: The example shown is for illustration purpose only and actual return at maturity of the Equity Linked Account will depend on the prevailing market conditions. The example above assumes no transaction cost.

HKD Time Deposit (for comparison basis only)

	General Time Deposit
Principal	HKD260,928.00
Tenure	32 days
Interest Rate (p.a.)	2.55%+
Interest Earned	HKD583.33 (HKD260,928.00 x 2.55% x 32/365 days)

+ The interest rate of the general HKD time deposit at 2.55% p.a. is quoted based on the 1 month’s HKD time deposit of Standard Chartered Bank (Hong Kong) Limited on 13 June 2007.

What are the features of Equity Linked Account?

Equity Linked Account helps enhance the potential yield of your deposit with greater flexibility:

Deposit tenure from 1 to 12 months
An extensive range of selected stocks listed on the Hong Kong Stock Exchange for your choice (List of selected stocks will be updated daily and provided upon request)
Denominated in Hong Kong Dollar
Minimum principal amount of HKD250,000
With transaction amount of HKD1,000,000 or above, you can select stocks listed on the Hong Kong Stock Exchange as designated by the Bank from time to time with a choice of different Tenure and Target Price (subject to market volatility and situation)

Act now! Financial success is within you reach

Terminology

Closing Price	The official Closing Price of the Underlying Stock as published by the Stock Exchange of Hong Kong Limited for the day.
Limit Order Price	It is set by the Bank for each Equity Linked Account order and is used as the reference price for the Bank to hold funds for the order, as well as to determine whether the Equity Linked Account order will be executed at day end. If the Closing Price of the Underlying Stock at the Trade Date closes above the Limit Order Price, the Bank will not set up the account for the customer.
Maturity Date	The date on which interest is paid and the Principal is redeemed.
Start Date	The date on which interest on Principal starts to accrue.
Trade Date	The date on which the transaction takes place.
Target Price	The price of the Underlying Stock selected by the customer, which is derived by multiplying the Closing Price by the predetermined Target Price Percentage.
Underlying Stock	The particular stock chosen by the customer that linked to the Equity Linked Account.
Valuation Date	The date for determining whether the Bank will repay principal amount in cash or shares. This is usually two Exchange business days before the Maturity Date.

Note:

To set up an Equity Linked Account, you must be a Securities Services customer of the Bank. The dealing time of Equity Linked Account is between 10:00am and 3:00pm on every Exchange business day. Equity Linked Account orders can be placed and executed at any branch or through Phone Banking. The maximum Principal amount of Equity Linked Account is HKD20 million.
No withdrawal or repayment of the Equity Linked Account prior to the agreed Maturity Date is allowed.
A settlement fee of 0.25% will be levied on the Principal amount if you receive the deliverable amount of the Underlying Stock. Any other fees incurred by the Bank, whether to enter into the underlying investment or hedging agreements or for operational or administrative purposes and profit margins, if any, are already inherently contained in and subsumed into the calculation of the interest rate and other variables under the Arrangement. Any increase in the fees and charges will be subject to a 3 months notice to customers prior to their coming into effect.
A Confirmation Advice will be issued to customers invested in Equity Linked Account within 2 working days after the Trade Date on which the Equity Linked Account is executed to evidence the duly execution of the order. A Fixing Confirmation Advice will be issued to customers invested in Equity Linked Account within 2 working days after the Valuation Date of Equity Linked Account to evidence the due determination of whether cash or shares is to be received at maturity.
The Bank reserves the right not to accept any orders and set up the Equity Linked Account. If an order of the Equity Linked Account cannot be executed as per the details set out in the Order Placement Form by customers, the order will be cancelled and the Principal will be repaid to the customers.

Risk Disclosure Statement

Equity Linked Accounts are highly speculative and carry risks not normally associated with ordinary bank deposits. They are generally not the same as and not a suitable substitute for ordinary savings or time deposits. The price of shares may go down as well as up and past performance is not necessarily a guide to future performance. Depositors should make sure that they are familiar with the equity market and the particular Underlying Stock that they may choose for an Equity Linked Account and the effect that movements in the price of those stocks would have on the return of each Equity Linked Account. Investors will incur market risk. Any shares received may be worthless and investors may suffer a significant loss of principal. The amount of gain is limited to the predetermined interest even if the investor’s view of the market movement of the Underlying Stock is correct. This webpage does not constitute any recommendation that any person enter into any transaction described or any similar transaction, nor does it constitute any prediction of likely future movements in share prices or any representation that any such future movements will not exceed those shown in any illustration. All rates and figures appearing are for illustration purposes only.
You are advised to seek independent legal and financial advice with respect to any matter contained herein.
Equity Linked Account is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.