Selected Prestige Banking customers can enjoy up to HKD5,388 cash rewards upon designated online subscription amount for Equity Linked Investment subscription before 30 Sep.
Overview
Equity Linked Investments (ELIs) are structured products in which the investment returns are linked to the performance of the underlying equities. With a flexibility to select different tenors and product features, ELIs can be tailored to meet your investment needs.
Subscribe in just 5 quick steps
Understand product risk level
Title
What is Risk Tolerance Level?
Key features
Knowledge and insights
QuickGrasp
Watch the video to understand the basics of ELIs
LearnSmart[1]
Our educational tool LearnSmart offers an interactive way for you to learn more about how ELIs work. It covers two structures, “Callable ELIs” and “ELIs with Potential Upside Cash Return”, you can choose the one that best fits your investment views and objectives.
Illustration of other ELIs structures[1]
Some ELIs allow partial capital protection at maturity. Let’s begin the illustration.
Assume you will invest in a 3-month ELI with partial capital protection at maturity, and linked to a stock. Here are 4 scenarios showing how the final stock price will affect your total returns.
Details of your subscribed ELI
Terms
Amount
Initial stock priceInitial stock price is the closing price of the linked stock on the trade date of the ELIs.
HKD 100
Strike priceStrike price (i.e. reference stock price) is set as a specified percentage at or below the stock’s initial stock price. Generally, if the final stock price is at or above the strike price, you will receive the full investment amount; if the final stock price is below the strike price, you will receive physical shares of the linked stock or cash equivalent to the price at maturity.
HKD 100
Investment amount
HKD 80,000
Coupon rate (Price)
10% (HKD 110)
Base redemption levelIf the final stock price of the worst performing stock as of the final fixing date is lower than its initial stock price and less than the base redemption level of its initial stock price, you will receive an amount equal to the invested amount multiplied by the base redemption level (i.e. 80% of the investment amount) on the maturity date.
80% (HKD 80)
The increase in final stock price is higher than coupon rate
The final stock price goes all the way up to HKD 120, an increases of 20% at final fixing date. This increase in stock price is higher than the coupon rate of 10%. Thus, the coupon rate at maturity rises to 20%.
-
First month when you subscribe
You invest HKD 80,000
-
At maturity date on the third month
Total final amount (including principal and coupon) HKD 96,000
Your returns at maturity
HKD 80,000 x 20% (coupon rate at maturity) = HKD 16,000
The increase in final stock price is lower than coupon rate
The final stock price hits HKD 109, an increases of 9% at final fixing date. This increase in stock price is lower than the coupon rate of 10%. In this case, the coupon rate at maturity will be 10%.
-
First month when you subscribe
You invest HKD 80,000
-
At maturity date on the third month
Total final amount (including principal and coupon) HKD 88,000
Your returns at maturity
HKD 80,000 x 10% (coupon rate at maturity) = HKD 8,000
The final stock price is lower than the strike price and initial stock price
The final stock price drops to HKD 90, a decrease of 10% at final fixing date. Since the final stock price is lower than the strike price and the initial stock price, you are not entitled to any coupon amount and will receive only 90% of your initial investment amount.
-
First month when you subscribe
You invest HKD 80,000
-
At maturity date on the third month
Total final amount HKD 72,000
Your loss at maturity
HKD 80,000 x 10% (decrease %) = HKD 8,000
The final stock price is lower than the base redemption level
The final stock price decreases by 30%, to HKD 70 at final fixing date. Since the final stock price is lower than the strike price and base redemption level, you are not entitled to any coupon amount, and will receive only 80% (base redemption level) of your initial investment amount.
-
First month when you subscribe
You invest HKD 80,000
-
At maturity date on the third month
Total final amount HKD 64,000
Your loss at maturity
HKD 80,000 x 20% = HKD 16,000
Step 1
Log on to Personal e-Banking and select “Investments”, "Equity Linked Investments" and then "Subscription" via left menu. Select an ELI tranche.
Step 2
Choose your “Type of Investment Return”. The suitability assessment would be performed by the system based on the selected ELI and your personal circumstances. If you are fine with the assessment results, click “Continue”.
Step 3
Input your purchase details (e.g. Investment Amount and Concentration Risk Assessment etc.) and click “Continue".
Step 4
Confirm you have read and understood the offering documents and important messages, then click “Next” to proceed.
Step 5
Verify Product Information and Purchase Details etc., then click "Confirm"
Step 6
Subscription instruction placed successfully. You may view your subscription details through "Order Status".
Step 1
Log on to Hang Seng Personal Banking mobile app and select “Investments”, "Equity Linked Investments" and then "Subscription" via the main menu.
Step 2
Select an ELI tranche.
Step 3
Choose your “Type of Investment Return”. The suitability assessment would be performed by the system based on the selected ELI and your personal circumstances. If you are fine with the assessment results, click “Continue”.
Step 4
Input your purchase details (e.g. Investment Amount and Concentration Risk Assessment etc.) and click "Next".
Step 5
Confirm you have read and understood the offering documents and important messages, then click “Next” to proceed.
Step 6
Verify Product Information and Purchase Details etc., then click "Confirm".
Step 7
Subscription instruction placed successfully. You may view your subscription details through "Order Status". Offering documents
Programme for the Issue of Unlisted Equity Linked Structured Products offered by Hang Seng Bank Limited:
Trading service
The ELIs online trading platform processes ELIs orders from 9:00am to 3:30pm on trading days Monday through Friday (excluding Hong Kong public holidays, half-day trading, or market disruption days).
You can convert the currency via your Personal e-Banking account or instruct the Bank to convert it in your account prior to placing your ELIs order. Please note that the ELI order will be rejected if the funds in your account are insufficient in the relevant currency.
If there are any corporate actions relating to your ELIs holding, we will provide you with a written notification based on your registered contact information with the Bank.
You will need a Securities Account to subscribe to ELIs and for their stock delivery (if any). If you are an Integrated Account holder, you may open or reactivate the Securities Account via Personal e-Banking services or by visiting any of our branches. Please note that a suitability assessment is required when conduct ELIs transaction.
Yes. Simply log on to Hang Seng Personal e-Banking and click on "Order status" section. You can also view your holding details in the "My Portfolio" section under the "ELIs".
Feature & risk
The investment periods for ELIs usually range from 1 month to 3 years.
ELIs may be issued in any non-restricted and freely convertible currencies, such as AUD, CNY, EUR, GBP, HKD, JPY, NZD or USD. This will be specified in the term sheet for the relevant series of ELIs.
The settlement currency for any cash payment under an ELI will usually be the same as the currency used when you purchased the ELI.
The typical minimum investment amount is approximately HKD 80,000 or its equivalent in other currencies. The amount will be reviewed periodically and specified in the term sheet for the relevant series of ELIs.
ELIs may have features such as Airbag, Callable and / or Daily accrual. You can learn more about the relevant products through “How does it work” section in this webpage. For further information, please refer to the The Chin family.
Some of the ELIs are not capital-protected, while others are partially capital-protected at maturity, subject to a base redemption level specified in the relevant term sheet.
Please note that the full amount of your investment is at risk in either case and be prepared to bear full financial responsibility.
Please refer to risk factors listed in the relevant offering documents for the ELIs.
Once you have placed an ELI order, you have committed to purchase the ELIs unless:
- a post-sale cooling-off period applies to the ELIs and you exercise the right to cancel or unwind your ELI order.
- You exercise your right to cancel your order within the specified period as notified by your distributor.
You should note that the total cash amount returned to you when you unwind your order may be substantially less than your initial investment.
A product's risk rating is based on the Bank's proprietary risk rating methodology, which considers a variety of qualitative and quantitative factors.
All investment products are assigned a risk level from 1 to 5, with 1 as the lowest and 5 as the highest. A product risk rating is neither a statement of fact nor a recommendation to buy or sell the product.
Click to learn more about how we assign risk ratings for ELIs.
If you have any queries on product risk ratings, please contact your Relationship Manager. Independent financial and legal advice should be sought if necessary.
Fees and charges
Please refer to the offering documents for the ELIs you are considering.
Useful information
Services and support
Open a securities account
New to Hang Seng Bank
Open a bank account and investment account with Hang Seng Mobile App[2]
Existing integrated account holders
Comprehensive Equity Linked Investments experience is just a few steps away[3]
Non-integrated account holders
Open an Integrated Account at designated branches and activate your investment account via Personal e-Banking
Need more help?
Footnote
Remark(s)
- Contents of the illustrations in LearnSmart and/or in this website (“the illustrations”) are for illustration purpose only and do not constitute any offer, invitation or recommendation to any person to purchase any ELIs. Calculations and examples contained in the illustrations are purely hypothetical and do not reflect a complete analysis of all possible gain or loss scenario, and they should not be relied on as an indication of what the return on the ELIs might actually be upon early call or maturity. For actual calculations, rounding adjustment, settlements and delivery expenses payable, please refer to the terms and conditions set out in the relevant offering circular of ELIs.
- You can open a bank account online with your mobile phone only if you do not hold any of the following Hang Seng Bank accounts, including but not limited to:
• Savings / Current Account (including passbook and statement savings account)
• Integrated Account
• Credit Card Account
• Business Account
• Joint-named Account
• Mortgage Plan
• Safe Deposit Box Services
The service is also only available if you fulfil all of the below criteria:
• Aged over 18 and under 65
• A permanent Hong Kong resident
• Not a US citizen or tax resident
• Residing in Hong Kong (with current residential and correspondence address(es) in Hong Kong)
• Currently located in Hong Kong
- Integrated account is referring to the following accounts:
• Prestige Banking
• Preferred Banking
• Green Banking
• Integrated Account
• M.I. Kid Asset Builder Account