Priority Banking
Revolving Cash Card
Partner
Global Outlook
Equity Linked Investment Services
Important Note: Equity Linked Investments are structured products involving derivatives. The Investment decision is yours but you should not invest in the Equity Linked Investments 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. |
We understand a balancing portfolio is important to diversify your investment risk. That's why we offer you Equity-Linked Investment Services to give you a variety of structures to diversify your portfolio in hope of earning a potential higher coupon.
What are Equity-Linked Investments (ELIs)?
ELIs are structured investment products embedded with derivatives whose investment returns are linked to the performance of the reference assets. The reference assets can be shares in a listed company, units in an exchange-traded fund or equity indices. Some ELIs includes one or more additional special features. These features may affect the potential return or loss of the ELIs in different ways.
ELIs are unlisted structured products which the offering documents have been authorized by the Securities and Futures Commission under the Securities and Futures Ordinance.
What are the benefits and features?
ELIs give a potential to earn higher returns compared to regular cash deposits, and chance to purchase the reference assets at your target price.
| Currency | Reference Assets | Special Features | Investment Tenor |
Major currencies include HKD/ USD/ AUD/ NZD/ EUR/ GBP |
A single stock |
Early call |
From 1 month and |
What are the minimum investment amounts and fees?
The minimum investment amount of Equity-Linked Investments are HKD100,000 or equivalent.
| Services | Fees |
| Subscription | Free of charge |
| Early Withdrawal | 0.75% of Equity Linked Investment’s face value |
| Interest collection | Free of charge |
| Maturity redemption (cash) | Free of charge |
| Maturity redemption (stock delivery) | 0.1% settlement fee |
Risk Disclosure Statement:
- The price or value of the Equity Linked Investments (ELIs) fluctuates, sometimes dramatically. The price or value of the ELIs may move up or down, and may even become valueless. It is as likely that losses will be incurred rather than profit made as a result of subscribing for, buying and selling the ELIs. Investors should therefore carefully consider whether such transactions are suitable in light of their financial position and investment objectives before entering into such transactions.
- Not principal protected: ELIs are not principal protected. You may suffer a loss if the prices of the underlying asset(s) of an ELI go against your view. In extreme cases, you could lose your entire investment.
- Limited potential gain: the potential return on your ELI may be capped at a predetermined level specified by the issuer.
- Credit risk of the issuer: when you purchase an ELI, you rely on the credit-worthiness of the issuer. In case of default or insolvency of the issuer, you will have to rely on your distributor to take action on your behalf to claim as an unsecured creditor of the issuer regardless of the performance of the reference asset(s).
- No collateral: ELIs are not secured on any assets or collateral.
- Limited market making: issuers may provide limited market making arrangement for their ELIs. However, if you try to terminate an ELI before maturity under the market making arrangement provided by the issuer, you may receive an amount which is substantially less than your original investment amount.
- Investing in an ELI is not the same as investing in the reference asset(s): during the investment period, you have no rights in the reference asset(s). Changes in the market price of such reference asset(s) may not lead to a corresponding change in the market value and/or potential payout of the ELI.
- Conflicts of interest: issuer of an ELI may also play different roles, such as the arranger, the market agent and the calculation agent of the ELI. Conflicts of interest may arise from the different roles played by the issuer, its subsidiaries and affiliates in connection with the ELI.