From now till 30 Dec 2022, successfully subscribe for ELI Products to get a lucky draw entry, without registration, for a chance to win 1 lot of the Tracker Fund of Hong Kong and/or 3 shares of the SPDR S&P 500.
Overview
Equity Linked Investments (ELI) are structured investment products in which the investment returns are linked to the performance of the linked stock. With a flexibility to select different tenors and product features such as callable feature, potential upside feature and airbag feature, ELIs can be tailored to meet your investment needs.
Subscribe in just 3 quick steps
Before beginning your investment journey
What is Risk Tolerance Level?
Substitute Form W-8BEN [1]
Complete the form on Invest Express Mobile App for applicable ELIs subscription
Key features
Knowledge and insights
QuickGrasp
Watch the video to understand the basics of ELIs. It includes:
- Understanding the relationship between potential return for investors and the performance of the linked stocks;
- Different situations upon maturity (including how to receive stocks at the strike price); and
- Things to note before investing in ELIs
LearnSmart[2]
Our educational tool LearnSmart offers an interactive way for you to learn more about how ELIs work. It covers 2 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[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)
Scenario 1 : Gain a higher return at maturity
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
Scenario 2 : Gain a minimum return at maturity
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%.
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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
Scenario 3 : Loss partial invested amount at maturity
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.
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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
Scenario 4 : Maximum loss at maturity
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
Via website
Step 1
Log on to Personal e-Banking and select “Investments” > "Equity Linked Investments" > "Subscribe" via left menu. Choose an ELI tranche.
Step 2
Enter subscription details (e.g. investment amount) and conduct relevant suitability assessments, then click "Save and continue".
Step 3
Verify information including product and subscription details, then click "Confirm".
Step 4
After submitting the subscription order, you may view your subscription details in "Order Status“ under “My Portfolio” section.
Via mobile app
Step 1
Log on to Hang Seng Personal Banking mobile app and select “Investments” > "Equity Linked Investments" > "Subscribe" via left menu.
Step 2
Choose an ELI tranche.
Step 3
Enter subscription details (e.g. investment amount) and conduct relevant suitability assessments, then tap "Next".
Step 4
Verify information including product and subscription details, then tap "Confirm".
Step 5
After submitting the subscription order, you may view your subscription details in "Order Status“ under “My Portfolio” section. 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.
What is the minimum investment amount of ELIs?
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.
Will I be notified of corporate actions of the underlying stock(s) linked to the ELIs I hold?
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).
You can 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.
What is the settlement currency for 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
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[3]
Existing integrated account holders
Comprehensive Equity Linked Investments experience is just a few steps away[4]
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)
- 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.
- 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