Equity Linked Investments (ELI)

Investment involves risks, Terms and Conditions apply to the service.

Overview

Equity Linked Investments (ELIs) are structured investment products in which the investment returns are linked to the performance of the linked stock. ELIs provide linked stocks across HK stock market and US stock that are listed on NYSE and NASDAQ markets.

With a flexibility to select different tenors and product features such as callable feature, potential upside feature and airbag feature, ELI linked with HK stocks and ELI linked with US stocks can be tailored to meet your investment needs. 

Before beginning your investment journey

Product risk level

Product risk level
2
3
4
5

Risk Profiling Questionnaire

Substitute Form W-8BEN [1]

Complete the form on Invest Express Mobile App for applicable ELIs subscription

Key features

ELIs can be linked to certain stocks or exchange-traded funds (ETFs) that are listed on stock exchanges. They can also be linked to a single stock or a basket of stocks.

ELI-linked stocks included HK stocks, and US stocks that are listed on NYSE and NASDAQ, covering diversified sectors such as technology, finance, telecommunications, consumption and health care.

Some ELIs include a partial capital protection feature at maturity, subject to a base redemption level.
The base redemption level, usually specified as a percentage, range from 70% to 99.9% of the invested amount.

In certain circumstances, you may earn higher potential returns than with conventional time deposits, depending on changes in the values of the underlying assets.

ELIs flexible tenors range from 2 months to 3 years.
ELIs with callable feature allows investors to receive the potential return and their invested amount before the maturity date.

Some ELI products include an airbag feature, in which case the settlement at maturity will depend on whether an airbag lapse event has occurred.
The airbag level is usually expressed as a percentage of the linked stock’s initial spot price, and is usually set lower than its strike price.

You may subscribe for ELIs linked to HK stocks and US stocks via Hang Seng Personal Banking mobile app, Personal e-Banking (Desktop version) or any of our branches.

Nowadays, market news is ever-changing and opportunities are everywhere. Besides the subscription service, you can also access news of related markets and linked stocks via Hang Seng Personal Banking mobile app and Personal e-Banking (Desktop version), based on different categories, stock codes, etc. We also provide Chinese translations for news related to certain US stock markets​[2] for your reference.

Want to keep abreast of market news for your favourite stocks in ELI and stock watch list? "News Express" got you covered. You can browse in one click, and find out more about ELI subscription service. Grasp investment opportunities with us.

Illustrations and information

How does it work

IIllustrative example[2]

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 price

HKD 100

Strike price

HKD 100

Investment amount

HKD 80,000

Coupon rate (Price)

10% (HKD 110)

Base redemption level

80% (HKD 80)

Understand your return in different scenarios In scenario 1, the increase in final stock price is higher than coupon rate.  In scenario 2, the increase in final stock price is lower than coupon rate. In scenario 3, final stock price is lower than the strike price / initial stock price. In scenario 4, the final stock price is lower than the base redemption level.

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%.

  1. First month when you subscribe

    You invest HKD 80,000

  2. 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%.

  1. First month when you subscribe

    You invest HKD 80,000

  2. 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.

  1. First month when you subscribe

    You invest HKD 80,000

  2. 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.

  1. First month when you subscribe

    You invest HKD 80,000

  2. 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

Via website

Step 1
Log on to Personal e-Banking and select “Investments” > "Equity Linked Investments" > "Subscribe" via left menu, then choose a HK or US ELI tranche. You can also choose "Related news" to check out the latest news.

Via mobile app

Step 1
Log on to Hang Seng Personal Banking mobile app and select “Investments” > "Equity Linked Investments" > "Subscribe" via left menu.

ELI linked with HK stocks

ELIs linked with HK stocks provide various types of products for selection such as Callable Equity Linked, Bull ELI with potential upside cash distribution, and Bull ELI with potential upside cash distribution and partial capital protection at maturity.

ELIs can be linked to certain HK stocks or exchange-traded funds (ETFs) that are listed on stock exchanges. They can also be linked to a single stock or a basket of stocks, covering diversified sectors such as technology, finance, telecommunications, consumption and health care, and even ESG related stocks.

Keep reading to know more about ESG related stocks[3].

ESG-themed HK ELI

In recent years, ESG has been an increasingly popular topic within the market. Incorporate sustainable investment in your investment strategies for HK stocks to pave way for a greener future without sacrificing your potential return. 

Stock code Hong Kong listed stock name
2 CLP Holdings Ltd.
17 New World Development Co Ltd.
66 MTR Corporation Ltd.
175 Geely Automobile Holdings Ltd.
388 Hong Kong Exchanges And Clearing Ltd.
669 Techtronic Industries Co. Ltd.
688 China Overseas Land And Investment Ltd.
700 Tencent Holdings Ltd.
823 Link Real Estate Investment Trust.
1113 CK Asset Holdings Ltd.
1299 AIA Group Ltd.
1772 Ganfeng Lithium Group Co., Ltd. - H shares
1972 Swire Properties Ltd.
1997 Wharf Real Estate Investment Co Ltd.
2020 Anta Sports Products Ltd.
2202 China Vanke Co., Ltd. - H shares
2269 Wuxi Biologics (Cayman) Inc.
2382 Sunny Optical Technology (Group) Co. Ltd.
2388 BOC Hong Kong (Holdings) Ltd.
2628 China Life Insurance Co. Ltd.
2888 Standard Chartered Plc.
9618 JD.com, Inc.-SW.
9987 Yum China Holdings, Inc.
9999 NetEase, Inc.-S.

Last update date: 30/1/2023

ELI linked with US stocks

Callable Equity Linked Investments can be linked with certain US stocks that are listed on NYSE and NASDAQ. They can also be linked to a single stock or a basket of stocks, covering diversified sectors such as technology, finance, telecommunications, consumption and health care, and even ESG related stocks.

Keep reading to know more about ESG related stocks[3].

ESG-themed US ELI

In recent years, ESG has been an increasingly popular topic within the market. Incorporate sustainable investment in your investment strategies for US stocks to pave way for a greener future without sacrificing your potential return. 

Stock code US  listed stock name
AAPL Apple Inc
ABT Abbott Laboratories
AMD Advanced Micro Devices, Inc.
AXP American Express Co
BAC Bank of America Corp
BSX Boston Scientific Corp
C Citigroup Inc.
COST Costco Wholesale Corp.
DIS Walt Disney Co/The
F Ford Motor Co
FDX FedEx Corp
GOOGL Alphabet Inc
GS Goldman Sachs Group Inc/The
HD The Home Depot, Inc.
JNJ Johnson & Johnson
KO Coca-Cola Co/The
MAR Marriott International, Inc.
MCD McDonald's Corp
MSFT Microsoft Corp
NEM Newmont Corp
NKE NIKE Inc
NVDA NVIDIA Corp
PEP PepsiCo Inc
PG The Procter & Gamble Company
QCOM QUALCOMM Inc
SBUX Starbucks Corp
UNH UnitedHealth Group
WMT Walmart Inc

Last update date: 30/1/2023

To subscribe US ELIs, please click "Invest now" and log on to Personal e-Banking, then choose “US stocks linked”.

Knowledge and insights

Choose the one that best fits your investment views and objectives.

Equity Linked Investments keep you agile with offensive and defensive strategies

Investment overview in global market (Cantonese version)

Investment Overview in Stock markets (Cantonese Version)

FAQs

Popular questions

Equity Linked Investments (ELI) are structured investment products where investment returns are linked to the performance of the linked stock. Diversified ELI products may have features such as Airbag, Callable and / or Daily accrual.

You can learn more about ELIs through “How does it work” section in this webpage. Please also refer to the terms and conditions as set out in the relevant offering documents for the ELIs.

Our equity linked investment services include both Hong Kong and US securities as the underlying choices. The ELI's market coverage includes Hong Kong Stock Exchange, New York Stock Exchange (NYSE) and NASDAQ Global Select Market. You can also access news related to HK and US stock markets. 

The typical minimum investment amount for ELIs linked with HK Stock(s) is approximately HKD80,000 or its equivalent in other currencies. While for ELIs linked with US Stock(s) may be around HKD100,000 or its equivalent in other currencies. The amount will be reviewed periodically and specified in the term sheet for the relevant series of ELIs.

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 you need to go through suitability assessment before subscribing for ELIs.

Trading service

The ELIs online trading platform processes ELIs linked to HK Stock(s) orders from 9:00 am to 3:30 pm on trading days from Monday through Friday (Hong Kong Time) (“HKT”) (excluding Hong Kong public holidays, half-day trading, or market disruption days). While for ELIs linked with US Stock(s), the ELIs online trading platform processes ELIs orders from 9:00 am to 5:00 pm (HKT) on trading day from Monday to Friday (except for Hong Kong and United States public holidays, half-day trading, or market disruption day).

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 the potential currency conversion costs and you may be exposed to risk of fluctuation in the exchange rate against your home currency. 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 contact information you registered with the Bank.

Yes. Simply log on to Hang Seng Personal e-Banking and click "Order status" section under “My Portfolio” tab. You can also view your holding details in the "My Portfolio" section under the "ELIs".

ELIs linked to US stock(s) subscription service is available at Hang Seng Bank’s branches, Personal e-Banking and mobile app from 9:00 am to 5:00 pm on trading day from Monday to Friday (HKT) (except for Hong Kong and United States public holidays, half day trading, or market disruption day).

Besides the subscription service, you can also access news of related markets and linked stocks via Hang Seng Personal Banking mobile app and Personal e-Banking (Desktop version). We also provide Chinese translations for news related to certain US stock markets​[2] for your reference. You can also access Invest Express to keep track of different stock’s information, such as performance, stock quote and news or by visiting any of Hang Seng Bank branches.

Yes. You are required to hold a valid W-8BEN Form record before subscribing for ELIs linked to US stock(s). You may submit a Substitute Form W-8BEN through Invest Express if needed. Apart from that, you will have to conduct a suitability assessment with reference to your personal circumstances during the subscription process.

You can now subscribe ELIs linked to US stock(s) at Hang Seng Bank’s branches, Personal e-Banking and mobile app.

Feature & risk

The investment periods for ELIs usually range from 2 months 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.

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

Product tranche list

View the Top 10 traded ELIs offered by the Bank

Featured offers

Take a look at the latest ELIs promotions

ESG 101

Understand what is ESG and sustainable investment to know how it would affect our investment decisions.

Services and support

Open a securities account

New to Hang Seng Bank

Open a bank account and investment account with Hang Seng Mobile App[4]

Existing integrated account holders

Comprehensive Equity Linked Investments experience is just a few steps away[5]

Non-integrated account holders

Open an Integrated Account at designated branches and activate your investment account via Personal e-Banking

You may be interested in

Need more help?

Call our 24-hour hotline

Personal customers:
(852) 2882 0228
Commercial customers:
(852) 2198 8000

Visit our branches

Footnote

Other point(s) to note

The translated content is provided by 3rd party information provider with translation software used. The Bank makes no warranty as to the accuracy, reliability or correctness of any translations and accepts no liability in relation thereto.

Investors should not only base on this material alone to make investment decisions, but should read the relevant offering documents of the investment products (including the full text of the risk factors stated therein) and risk disclosure statements of the relevant investment products in details before making any investment decision.

You should obtain independent professional advice if you have concerns about your investment.

Remark(s)

  1. For Joint accounts, all non-US account holders need to maintain a valid US IRS W-8BEN Form with the Bank and the W-8BEN Form will be subject to regular review. Customer can visit the US IRS website to download the US IRS W-8BEN Form and for instructions on completing the Form.If you would like to know more about the W-8BEN Form, please consult your professional adviser including but not limited to tax adviser. We cannot provide you with any legal and/or tax advice.
  2. 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.
  3. The Bank will take a variety of sustainable factors into consideration when determining the Environmental, Social and Governance (“ESG”) performance of the stocks. The factors include, but are not limited to stock(s)’ ESG rating, ESG policy, ESG disclosure, greenhouse gas emission, etc. The Bank may rely on external third party’s information when assessing ESG performance of the stocks and the source of information is based on sources that the Bank believe to be reliable but has not been independently verified. The Bank may not be able to provide the most up-to-date of ESG performance on any particular stock(s) in a timely manner. The ESG indicator as determined by the Bank is for investors’ general information and reference only when incorporating ESG quality in their investment strategies, and is not nor is it intended to be a solicitation, recommendation or advice on any stocks. Investor should understand that there is currently no market consensuses on what attributes an environmental, social and governance equity linked investments entails (“ESG ELIs”). The ESG indicator contained in this website is based on sources which the Bank believes to be reliable but has not independently verified. The Bank has not independently verified the effectiveness of the underlying stock / company on their investment strategies, investment selection processes, investment portfolios, management or the ESG factors they incorporate (if any), thus investors should be aware that the ESG indicated product may not Fulfil all three ESG pillars. Inclusion of the ESG indicator does not constitute recommendation or endorsement of these products or a guarantee of their ESG attributes or related performance. Investors must make their own assessment of the relevance, accuracy and adequacy of the the ESG indicator, and information, projections contained in the relevant ELIs offering documents and make such independent research/investigations as they may consider necessary or appropriate for the purpose of such assessment. The ESG classification mechanism is subject to the Bank's periodic review and may change from time to time. The Bank does not make any representation or recommendation or assessment as to whether or not any of the stock(s) mentioned is/are suitable or applicable to any persons and thus shall not be held responsible in this regard.
  4. 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
  5. Integrated account is referring to the following accounts:
    •    Prestige Banking
    •    Preferred Banking
    •    Green Banking
    •    Integrated Account
    •    M.I. Kid Asset Builder Account