|
HSBC 100+ Series China Region Investments |
|
Rebate |
2.00% |
|
Closing Date |
CLOSED |
| Minimum
Investment |
$20,000 |
|
Maturity Date |
30 Jun 2015 |
|
Research |
 |
Lonsec (863kb) |
 |
Your gateway to investing in the China Region.
HSBC 100+ Series China Region Investment.
The HSBC 100+ Series China Region Investment (the “Investment”) is a 5 year product that offers you exposure to the equities markets of China, Hong Kong and Taiwan, with the comfort of 100% capital protection* at maturity. In addition, you have a choice of receiving your potential Investment returns as capital growth and/or annual Income Amounts.
The China region
The Investment provides you with exposure to key China A Shares, and key shares listed on the Hong Kong and Taiwan stock exchanges through an equally weighted basket of Underlying Indices comprising:
• |
iShares FTSE/Xinhua A50 China Exchange Traded Fund, |
|
• |
Hang Seng Index, and |
|
• |
MSCI Taiwan Index. |
About the Investment
The Investment provides you with returns linked to the performance of the Underlying Indices. You may choose to receive the returns in the form of capital growth payable at maturity (for the Growth Investment), or in Income Amounts payable annually (for the Income Investment), or a combination of both.
The return on the Investment is calculated based on the performance on the equally weighted basket of Underlying Indices. The performance of the basket is always referenced back to the initial levels of the Underlying Indices at the beginning of the Investment.
The following examples are used to explain the calculation methodology for the Investment return. It is not intended to be indicative of the past or future performance of the Underlying Indices or the Investment.
Growth Investment
The return at maturity equals to the performance of the basket averaged over 7 observations spanning the last 6 months of the Investment term. You may receive between 0% and 115%† capital growth payable at maturity. |
|
|
|
| Month End |
54 |
55 |
56 |
57 |
58 |
59 |
60 |
|
Basket Performance |
83% |
109% |
79% |
91% |
99% |
103% |
108% |
|
Ending Average Return over last 6 months = 96% |
Income Investment
The Income Amount payable at the end of every year over the investment term is equal to the average annual performance of the basket of Underlying Indices. The average annualised performance is the performance of the basket at the end of the year, measured from the initial levels, and divided by the number of years since the Investment started. The annual Income Amount ranges between 0% and 13.2%‡ per annum.
| Month End |
12 |
24 |
36 |
48 |
60 |
| Basket Performance |
6% |
79% |
203% |
23% |
108% |
|
Income Amount (13.2% cap) |
6%
(6%/1) |
13.2%
(79%/2) |
13.2%
(203%/3) |
5.75%
(23%/4) |
13.2%
(108%/5) |
Capital protection
The Investment provides you with the comfort of 100% capital protection* at maturity. In the event that the Underlying Indices fall significantly from their initial levels, you can enjoy the comfort of knowing that your initial investment amount is protected and will be returned to you at maturity.
Low minimum investment
For a minimum investment of A$20,000, with increments of A$1,000 thereafter, you can get exposure to the China A shares market, and the Hong Kong and Taiwan equity markets without foreign exchange risk and with 100% capital protection* at maturity. You may split the minimum investment between the Growth and Income Investments in increments of A$1,000.
What are the risks in this Investment?
There are risks in this investment, including:
• |
Market risk that the Underlying Indices perform unfavourably resulting in the Investment paying zero return. |
|
• |
Early termination risk whereby HSBC could terminate your Investment in rare circumstances, and in which case capital protection will not apply. |
|
• |
As the return for the Growth Investment is capped by the Growth Cap and for the Income Investment by the Income Cap, you will not receive any additional performance above these cap levels. |
|
• |
Interest rate risk, as changes in Australian interest rates can impact the Early Termination Amount and/or Early Withdrawal Amount and additionally impact on HSBC’s determination of the Growth Cap and the Income Cap on the Issue Date. |
You should read the PDS which explains the risks, before you make an investment. In particular, you should be aware that if the Underlying Indices underperform during the investment term, you may receive zero return for the Growth Investment and/or the Income Investment.
How the Investment fits into an investment portfolio?
The Investment may appeal to a broad range of investors who:
• |
Want to gain exposure to the equities markets of China, Hong Kong and Taiwan, looking to take advantage of growth in these markets, but at the same time looking to limit their downside risk. |
|
• |
Want the choice of receiving capital growth and/or regular income returns to suit their personal cash flow requirements. |
|
• |
Appreciate the certainty of 100% capital protection* at maturity. |
|
• |
Value investing with one of the largest banking and financial services organisations in the world. |
|
• |
Are comfortable with investing for a period of 5 years. |
|
• |
Have at least A$20,000 to invest. |
HSBC Bank Australia Limited
HSBC Bank Australia Limited, the Issuer of the Investment, is a member of the HSBC Group, which is one of the largest banking and financial services organisations in the world.
With assets of US$2,364 billion as at 31 December 2009, the HSBC Group is one of the most strongly capitalised and liquid banks in the world.
HSBC Bank Australia Limited started operations in Australia in 1965 and was granted a commercial banking licence in 1986. In Australia, HSBC offers an extensive range of financial services through a network of 34 branches and offices.
This information doesn’t take into account what you currently have, want or need for your financial future. You should consider these matters and read the Product Disclosure Statement (PDS) before you make an investment decision.
A copy of the PDS is available above.
MSCI Index
The MSCI indexes are the exclusive property of MSCI Inc. (“MSCI”), MSCI and the MSCI index names are the service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes by HSBC Bank Australia Limited. The financial securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such financial securities.
The PDS contains a more detailed description of the limited relationship MSCI has with HSBC Bank Australia Limited and any related financial securities. No purchaser, seller or holder of this product, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this product without first contacting MSCI to determine whether MSCI’s permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI.
Hang Seng Index
Please refer to the disclaimer in relation to the Hang Seng Index in the PDS.
iShares FTSE/Xinhua A50 China Index Exchange Traded Fund
The name of iShares FTSE/Xinhua A50 China Index Exchange Traded Fund is included here for identification purposes only. “iShares” is a registered mark of BlackRock Institutional Trust Company N.A. (“BlackRock”). The Investments are not sponsored, endorsed, sold, or promoted by BlackRock. BlackRock makes no representations or warranties to the Investors or any member of the public regarding the advisability of investing in the Investments. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of the Investments.
* Capital protection only applies at maturity and provided no Early Termination Event has occurred. The capital protection is also subject to the creditworthiness of the Issuer.
† The Growth Cap will be determined by the Issuer based on prevailing market conditions at the start of the Investment. If the Investment started at the date of the PDS (20 April 2010), the Growth Cap would be at 115%.
If a minimum Growth Cap of A$0.75 per A$1 invested is not achievable on the Issue Date, the Growth Investment will not proceed and your Growth Application Amount will be returned to you without interest.
‡ The Income Cap will be determined by the Issuer at the start of the Investment. If the Investment started at the date of the PDS (20 April 2010), the Income Cap would be at 13.2% If a minimum Income Cap of A$0.10 per A$1 invested is not achievable on the Issue Date, the Income Investment will not proceed and your Income Application Amount will be returned to you without interest. |
|
Simply download an Investment
Brochure/PDS above. It’s that easy! |
|
return to previous page | |
