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Equity-linked investments

Tap into the potential of equity market movements and earn higher potential income even when the market is range-bound


What is an equity-linked investment?

An equity-linked investment (ELI) could help you capture potential wealth opportunities even when the market is volatile or stagnant. It could give you the chance to generate potential investment returns linked to the performance of underlying equities and buy stocks at a price lower than the initial spot price. 

Key features

Earn higher potential returns

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

Soften negative market impact

ELIs cushion you from negative market conditions using a knock-in (airbag) feature

Choose your preferred tenor

Select tenor lengths from 3 months to 2 years, depending on your needs and circumstances

Seize market opportunities at ease

An alternative for those who may find it hard to time the market, with capability to customise[@customiseowneli] your product

Enjoy unlimited cash rewards for transactions made as a new customer

During the promotion period (now till 31 December 2022), new structured products customers (who did not hold or make structured product transactions between 1 April and 30 September 2022) can enjoy:

  • a HKD500 cash rebate for every subscription of any equity-linked Investment with an amount HKD200,000 or equivalent in other currencies
  • a HKD1,250 cash rebate for every subscription of any Private Placement Note (available to HSBC Jade Professional Investors only) with an amount HKD500,000 or equivalent in other currencies
  • a HKD160 cash rebate for every subscription of any capital-protected investment deposit or any Deposit Plus with an amount of HKD200,000 or equivalent in other currencies

There is no cap to the cash rebate you can earn during the promotional period.

T&Cs apply

Invest in ELIs online easily[@elionlinetradingplatform]

Our new awarded ELI online trading platform makes investing much more simple and convenient.

  • Customise your own product online[@customiseowneli]
  • Use 'Scenario Analysis' to view possible payouts of the specific product selected
  • Guided journey and filters to narrow down products according to your selection criteria
  • Reference underlying past performance

How does an ELI work?

Scenarios you may encounter when investing in ELIs

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 and the investor will lose the entire investment.

You can also check out the Scenario tab at the specific product selected in the ELI online trading platform to view possible scenarios illustrate with dynamic payout calculation.

Fee and charges

You won't be charged a subscription fee. However, other charges may apply.

If the underlying stock is to be delivered on the settlement date, you will be charged:

  • 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).
  • 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 will apply as advised by us when you open the account or when we notify you periodically with reasonable prior notice before the revisions.

If you have any questions, please visit us at your nearest branch.

 

Ready to explore ELIs?

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Award-winning structured products and platform

Wealth Management Platform of the Year – Hong Kong

HSBC won the top award of 'Wealth Management Platform of the Year – Hong Kong' at the Asian Banking & Finance Retail Banking Awards 2022 

Excellence Performance in ESG Investing Products

HSBC won the top award for 'ESG Investing Products' at the Bloomberg Businessweek – Financial Institution Awards in 2022 

Structured Products Distributor of the Year

HSBC has been awarded the 'Structured Products Distributor of the Year' at the Bloomberg Businessweek – Financial Institution Awards in 2022 

Find out more

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Notes

    Disclaimer

    • 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.
    • 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.

     

    Important Information about sustainable investing

    "Sustainable investments" include investment approaches or instruments which consider environmental, social, governance and/or other sustainability factors (collectively, "sustainability") to varying degrees. Certain instruments we include within this category may be in the process of changing to deliver sustainability outcomes.

    There is no guarantee that sustainable investments will produce returns similar to those which don't consider these factors. Sustainable investments may diverge from traditional market benchmarks.

    In addition, there is no standard definition of, or measurement criteria for sustainable investments, or the impact of sustainable investments ("sustainability impact"). Sustainable investment and sustainability impact measurement criteria are (a) highly subjective and (b) may vary significantly across and within sectors.

    HSBC may rely on measurement criteria devised and/or reported by third party providers or issuers. HSBC does not always conduct its own specific due diligence in relation to measurement criteria. There is no guarantee: (a) that the nature of the sustainability impact or measurement criteria of an investment will be aligned with any particular investor's sustainability goals; or (b) that the stated level or target level of sustainability impact will be achieved.

    Sustainable investing is an evolving area and new regulations may come into effect which may affect how an investment is categorised or labelled. An investment which is considered to fulfil sustainable criteria today may not meet those criteria at some point in the future.

     

    Risk disclosure – Equity-linked Investments (ELIs)

    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 material does NOT form part of the offering documents of our ELIs. 1. 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 any doubts about the content of this material, you should seek independent professional advice.
      2. 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.
      3. Not principal-protected – ELIs are not principal-protected: you could lose all of your investment.
      4. 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, and less any cash settlement expenses) and the maximum periodic potential cash dividend amount(s) payable during the scheduled tenor (ie 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.
      5. Re-investment risk – If our ELIs are terminated early, 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.
      6. No collateral – ELIs are not secured on any of our assets or any collateral.
      7. 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.
      8. 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.
      9. Not covered by the 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.
      10. 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.
      11. 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 (eg 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.
      12. You may, at settlement, receive physical delivery of reference asset(s).
      13. Our ELIs may be terminated early by us according to the terms as set out in offering documents of our ELIs.
      14. Our ELIs are structured investment products which are embedded with derivatives.
      15. 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.
    • 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. If you wish to receive solicitation or recommendation from us, please contact us and, where relevant, go through our suitability assessment before transacting.