Our newly launched Partial Capital Protected Equity Linked Structured Products allow you to invest while managing risks in a volatile market.
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.
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Key features
Knowledge and insights
QuickGrasp
Watch the video to understand the basics of ELIs
LearnSmart
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
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, linked to a stock. Here are 4 scenarios for 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 security'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 nominal value 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%.
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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 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%.
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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
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
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.
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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 64,000
Your loss at maturity
HKD 80,000 x 20% = HKD 16,000
Useful information
Services and support
Open a securities account
Open a bank account and investment account with Hang Seng Mobile App[1]
Comprehensive Equity Linked Investments experience is just a few steps away[2]
Open an Integrated Account at designated branches and activate your investment account via Personal e-Banking
Need more help?
- Equity Linked Investments ("ELIs") are structured products involving derivatives. The investment decision is yours but you should not invest in the ELIs 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. Investors should read the relevant offering documents of the ELIs before making any investment decision.
- Some ELIs are non capital protected - ELIs are unlisted structured products embedded with derivatives. Some ELIs are not capital protected. In the worst case scenario , investors may lose all of the investment.
- Some ELIs are partially capital protected at maturity – Provided that you hold the ELIs until maturity and the ELIs are not otherwise early terminated, there are some ELIs are partially capital protected at maturity. The payout that you receive at maturity may be less than your initial investment amount but is subject to a base redemption level.
- ELIs are unlisted structured products embedded with derivatives and are not equivalent to nor should they be treated as time deposits. They are NOT protected deposits for the purposes of the Deposit Protection Scheme.
- ELIs are defined as complex products under the guideline on Online Distribution and Advisory Platforms from Securities and Futures Commission (“SFC”), you should exercise caution in the relation to this product.
- Investors should also read the risk factors set out in the relevant offering documents of the ELIs.
- This webpage does not constitute any offer, invitation or recommendation to any person to purchase any ELIs described herein.
- The following risks should be read together with the other risk factors contained in the relevant offering documents of the ELIs.
- Information contained in this website has not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.
- Some ELIs are non capital protected - ELIs are unlisted structured products embedded with derivatives. Some ELIs are not capital protected. In the worst case scenario , investors may lose all of the investment.
- Some ELIs are partially capital protected at maturity - Provided that you hold the ELIs until maturity and the ELIs are not otherwise early terminated, there are some ELIs are partially capital protected at maturity. The payout that you receive at maturity may be less than your initial investment amount but is subject to a base redemption level.
- Not protected deposit - ELIs are not equivalent to nor should they be treated as time deposits. ELIs are not protected deposits for the purposes of the Deposit Protection Scheme.
- Liquidity risk. ELIs are designed to be held to its maturity. You may not be able to sell your investment in the ELIs before maturity. If you try to sell the ELIs before expiry, the amount you receive may be substantially less than the investment amount you paid for the ELI.
- Credit risk of the ELI issuer - ELIs constitute general unsecured and unsubordinated contractual obligations of the issuer. When you buy ELIs, you will be relying on the creditworthiness of the ELI issuer and of no other person. You have no rights under the terms and conditions of ELIs against any issuer of any linked stock. If the relevant ELI issuer becomes insolvent or default on its obligations under the ELIs, in the worst case scenario, you could lose all of your investment.
- Not the same as investing in linked stock - Investing in ELIs is not the same as investing in the linked stock(s). Changes in the market price or level of any linked stock(s) may not lead to a corresponding change in the market value of, or your potential gain or loss under, the 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