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Please read the Important Risk Warnings for Structured Notes before making investment decisions.
Structured Notes (Capital Protected) linked to different underlying assets are now launched on Hang Seng Mobile App. Start investing from HKD100,000. Eligible customers who successfully subscribed via mobile can enjoy an extra 2% p.a. interest rate for the first month.
Structured note is a structured investment product issued by financial institutions and includes derivatives with different payoff structures linked to various underlying asset types, e.g. foreign exchange rate or upon early redemption. It provides investors opportunities to gain higher potential return. You can start your investment online with HKD100,000.
You can log on to Hang Seng Mobile App to subscribe structured notes with ease.
This investment product helps to reduce capital loss risk amid market fluctuations.
Structured notes (capital protected) are 100% capital protection only when it is held to maturity. The amount received by you upon early withdrawal/ termination may be less than the amount initially invested by you. Please refer to Risk Factors detailed in the Issuer’s term sheet, Important Facts and the offering documents.
In addition to the minimum return at maturity or upon Issuer early redemption (if any), you can receive the potential return if the conditions (i.e. the performance of the linked asset, specific market events or other specified criteria) is/ are satisfied. You may go to the "Products overview and example" section to learn more about different return scenarios at maturity/ upon Issuer early redemption of various note products.
For details, please refer to the product’s additional terms and conditions in product subscription.
Different investment tenors available and major currencies are acceptable as investment currency, providing greater flexibility to achieve your investment goal.
You can subscribe for structured notes via Hang Seng Mobile App with simple steps or any of our branches.
Whether you are an investment beginner or experienced investor, you can subscribe for structured notes easily with an investment amount as low as HKD100,000.
Digital Coupon Notes on USD / HKD is a structured product linked to the performance of USD against HKD foreign exchange rate. It offers 100% capital protection and minimum return at maturity. If the trigger event occurs on valuation date, you can receive additional trigger bonus at maturity.
Subscription channel: Branch, Mobile
Subscription details
Investment amount
HKD100,000
Investment tenor
1 year
Linked assets
USD/HKD spot exchange rate
Trigger event
USD / HKD spot exchange rate is at or above limit (i.e. 7.80) on valuation date
Minimum bonus
4.90% flat rate
Trigger bonus
0.10% flat rate
When you subscribe
You invest HKD 100,000
At maturity
You receive 100% of your principal and both minimum and trigger bonus, a total of HKD105,000
Your return
HKD100,000 ✕ (4.90% + 0.10%) = HKD5,000
When you subscribe
You invest HKD100,000
At maturity
You receive 100% of your principal and minimum bonus, a total of HKD104,900
Your returns
HKD100,000 ✕ 4.90% = HKD4,900
Callable Linear Bonus Coupon Note is a structured product linked to interest rate, it offers 100% capital protection and coupon payment at maturity or upon issuer’s early redemption. A one-off bonus coupon will be paid if certain conditions is fulfilled.
Subscription channel: Branch, Mobile
Subscription details
Investment amount
USD20,000
Investment tenor
5 years
Linked assets
Secured Overnight Financing Rate (SOFR)
Linear coupon
5.00% per annum without compounding
Linear coupon payment date
Upon issuer's optional redemption or at maturity
Bonus coupon payment date
One year after issue date
Issuer’s Optional Redemption
Issuer has the right to redeem the note one year after issue date, and on the same date in the 2nd, 3rd and 4th year
At maturity
You receive 100% of your principal and accrued linear coupon (5% ✕ 5 years), a total of USD25,000
Your return
USD20,000 ✕ (5% ✕ 5 years) = USD5,000
Total receivable (principal and gain)
You receive 100% of your principal and maximum potential gain (including max bonus coupon), a total of USD25,100
Your total return
USD100 + 5,000 = USD5,100
Upon early redemption
You receive 100% of your principal and accrued linear coupon (5% ✕ 1 year), a total of USD21,000
Your return
USD20,000 ✕ (5% ✕ 1 year) = USD1,000
Total receivable (principal and gain)
You receive 100% of your principal and minimum gain, a total of USD21,000
Your total return
USD1,000
Relevant Rate: Daily Compounded SOFR
Upper barrier: 4.50%
Lower barrier: 4.00%
Scenarios
Condition
Calculation formula
Scenario 1: Receiving max bonus coupon
Relevant rate is above upper barrier on bonus coupon determination date
Investment amount ✕ (upper barrier - lower barrier)
USD20,000 ✕ (4.5% - 4%) = USD100
Scenario 2: Receiving bonus coupon
Relevant Rate is at or below upper barrier and above lower barrier
Investment amount ✕ (Relevant Rate - lower barrier)
USD20,000 ✕ (4.3% - 4%) = USD60
Scenario 3: No bonus coupon
Relevant Rate is at or below lower barrier on bonus coupon determination date
Relevant Rate: USD SOFR CMS 1 year
Limit: 1.0%
Bonus coupon: 0.5%
Scenarios
Condition
Calculation formula
Scenario 1: Receiving bonus coupon
Relevant Rate is at or above limit (3%) on bonus coupon determination date
Investment amount ✕ predetermined bonus coupon
USD20,000 ✕ 0.5% = USD100
Scenario 2: No bonus coupon
Relevant Rate is below limit (3%) on bonus coupon determination date
Floating Rate Coupon Note is a structured product linked to the performance of interest rate, the product offers 100% capital protection at maturity, coupon are distributed every quarter in general. It also offers minimum returns and opportunities to enjoy higher potential returns, up to a cap.
Subscription channel: Branch
Subscription details
Investment amount
USD20,000
Investment tenor
1 years
Linked assets
USD SOFR CMS 1 year
Cap
3.5% p.a.
Floor
2.5% p.a.
Coupon frequency
Every 3 months
Day count factor
90/360
Total receivable (principal and gain) at maturity
When you subscribe
You invest USD20,000
On a coupon payment date
Your coupon will be calculated based on capped coupon, i.e. USD175
Your coupon amount
USD20,000 ✕ 3.5% ✕ 90/360 = USD175
When you subscribe
You invest USD20,000
On a coupon payment date
Your coupon will be calculated based on coupon rate equal to linked interest rate, i.e. USD165
Your coupon amount
USD20,000 ✕ 3.3% ✕ 90/360 = USD165
When you subscribe
You invest USD20,000
On a coupon payment date
Your coupon will be calculated based on floored coupon, i.e. USD125
Your coupon amount
USD20,000 ✕ 2.5% ✕ 90/360 = USD125
When you subscribe
You invest USD20,000
Total coupon payment
You receive max floating coupon on each coupon payment date, total coupon amount USD700
Your coupon amount
USD20,000 ✕ [(3.5% ✕ 90/360) ✕ 4 quarters] = USD700
Total receivable (principal and gain)
You receive 100% of your principal and USD700 total coupon amount, a total of USD20,700
If linked interest rate is below 3.5% but above 2.5% on each coupon determination date, you will receive floating coupon with coupon rate equal to linked interest rate on each coupon payment date.
When you subscribe
You invest USD20,000
Total coupon payment
You receive min floating coupon on each coupon payment date, total coupon amount USD500
Your coupon amount
USD20,000 ✕ [(2.5% ✕ 90/360) ✕ 4 quarters ] = USD500
Total receivable (principal and gain)
You receive 100% of your principal and USD500 total coupon amount, a total of USD20,500
Subscribe Structured Notes via Hang Seng Mobile App (Cantonese version)
Open an integrated account and activate your investment account via Hang Seng Mobile App with ease[2]
Comprehensive Structured Notes (Capital Protected) experience is just a few steps away[3]
9:00 a.m. to 5:30 p.m. from Mon to Fri (excluding Hong Kong public holidays, half-day trading or market disruption days), however, the subscription time for individual products could be different.
You can refer to the risk factors listed in the relevant offering documents for the structured notes.
The relevant offering documents (including Term Sheet and Important Notes to Customers) are provided during the structured notes’ subscription process . After you have subscribed a note, you may also find it from "My Structured Notes" page in Hang Seng Mobile App. Alternatively, printed copies of the offering documents can be obtained free of charge during normal business hours on any business days at our branches. Please call us at 28220228 for details of the addresses our branches.
The issue date is the date on which structured notes are issued. The issue date is a day falling from 5 to 10 business days (subject to the specified structured notes) after the subscription date.
Yes, simply log on to Hang Seng Mobile App and tap "Structured Notes (Capital Protected)” to visit My Structured Notes page, you can view your subscription status and holding details.
According to LERS, when the demand for Hong Kong dollars is greater than the supply and the market exchange rate strengthens to the strong-side CU of HKD7.75 to USD1, the Hong Kong Monetary Authority (HKMA) stands ready to sell Hong Kong dollars to banks for US dollars. The aggregate balance (a component of the monetary base) will then expand to push down Hong Kong dollar interest rates, creating monetary conditions that move the Hong Kong dollars away from the strong-side limit to within the convertibility zone of 7.75 to 7.85.
If the supply of Hong Kong dollars is greater than demand and the market exchange rate weakens to the weak-side CU of HKD7.85 to USD1 the HKMA stands ready to buy Hong Kong dollars from banks. The aggregate balance (a component of the monetary base) will then contract to drive Hong Kong dollar interest rates up, pushing the Hong Kong dollars away from the weak-side limit to stay within the convertibility zone. For details, please refer to https://www.hkma.gov.hk/eng/key-functions/money/linked-exchange-rate-system/how-does-the-lers-work/
Only applicable for specific notes product.
Subject to the terms in the product's term sheet, you can redeem your investment in structured notes before maturity. The early redemption amount may be affected by the prevailing market conditions and may result in loss of the principal.
No. Please visit any of our branches if you want to redeem your structured notes.
There is no handling fee for subscribing structured notes. For details, please refer to offering documents.
SOFR is a broad indicator used to calculate the cost of borrowing overnight in the repo market collateralised by US Treasury securities. It is essentially the benchmark interest rate for USD denominated derivatives and loans.
Federal Reserve's Alternative Reference Rates Committee announced its preferred alternative reference rate to the USD LIBOR rate: Secured Overnight Financing Rate (SOFR).
For details, you may refer to https://www.hkma.gov.hk/media/eng/doc/key-functions/banking-stability/banking-policy-and-supervision/LIBOR_transtion_corporates_Q&As_revised.pdf and https://www.cmegroup.com/education/courses/introduction-to-sofr/what-is-sofr.html
Since SOFR is an overnight interest rate, several calculation methods based on SOFR have been developed to provide various interest rate options for different products. CME Term SOFR Reference Rates benchmark (Term SOFR) which is a set of forward-looking interest rate estimates, calculated and published daily for 1-, 3-, 6- and 12-month tenors. USD SOFR CMS 1 year is a forward-looking interest rate estimates for 12-month tenors.
For details, you may refer to https://www.cmegroup.com/articles/faqs/cme-term-sofr-reference-rates.html
