Equity-linked Investments (ELIs)

Lock-In Investment Opportunities
Linked to Market Performance

Important Notes:
-Our ELI is a structured investment product and not equivalent to time deposits. This product is not principal protected, and it is not protected by the Deposit Protection Scheme nor covered by the Investor Compensation Fund. The product is subject to high risk of investment principal loss.
-This product is not secured on any of our assets or any collateral. It is also subject to limited maximum potential gain.
-This is a structured product involving derivatives. The investment decision is yours but you should not invest in the Equity Linked Investment 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.
-This ELI has been authorized by the SFC. SFC authorization is not a recommendation or endorsement of the ELI, and also does not mean the suitability of the product to you.
-Please refer to the offering documents for further details, including fees and charges and risk factors.
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What are equity-linked investments?

Equity-linked investments (ELIs) are structured investment products embedded with derivatives, the investment returns of which are linked to the performance of the reference assets. The reference assets can be shares in a listed company, units in an exchange-traded fund or equity indices. Some issuers include one or more additional special features in their ELIs. These features may affect the potential gain or loss of the ELIs in different ways.

Product Features

  • Potential gain

    • Daily accrual feature gives you the opportunity to receive a potential distribution amount. 1

  • Flexibility

    • Investment tenor: 2-11 months
    • Investment amount: HKD 100,000 or above
    • Investment currency: HKD / USD / RMB

  • Underlying stock

    • You could choose a ELI linked to a single stock, or
    • ELI linked to a basket of stocks

  • Callable 1

    • An early call feature allows the issuer to terminate your investment before maturity if certain conditions are met. You may have chance to get back the principal and potential gains before maturity.

  • Airbag 2

    • Some ELIs may contain airbag features. Settlement in cash or physical stock will depend on any trigger events occurred or not
    • Airbag level for a reference stock is usually expressed as a percentage of its initial spot price. It is set at a level lower than the strike price
Remarks:
  1. Only applicable to callable equity-linked investments
  2. Only applicable to equity-linked investments with airbag

The above products and services are bound by the related terms and conditions. Please contact our staff for details.

Apply Online
Hotline +852 2903 8343
Visit Our Branches

Risk Disclosure
Investment involves risks. The prices of investment products fluctuate, sometimes dramatically, and may become valueless. Investment products are not equivalent to or alternatives of time deposits. Before making any investment decisions, customers are encouraged to consult their own independent financial advisors and read the relevant offering documents for further details including the risk factors in order to ensure that they fully understand the risks associated with the investment products.

Disclaimer
This webpage does not constitute advice to buy or sell, or an offer with respect to any investment products. Any offer, invitation or recommendation to any customers to enter into any investment transaction does not constitute any prediction of likely future movements in prices of any investment products. This webpage is issued by China Construction Bank (Asia) Corporation Limited, and has not been reviewed by the Securities and Futures Commission or any other regulatory authorities in Hong Kong.

Nominal amount $100,000
Reference Underlying Equities Stock A Stock B
Product Tenor 6 months
Initial Spot Price $50 $6
Coupon Per Annum 9%
Exercise Price 80% of Initial Spot Price
Callable Features Daily
Autocall Price 105% of Initial Spot Price
Knock-in Features At-Expiry
Knock-in Price 75% of Initial Spot Price
The reference example is buying a callable equity-linked investment (with Daily Call and At-Expiry Knock-in) linked to stock A and stock B. If the final price of the worst performing stock in a basket of stocks is lower than its exercise price, you will buy the stock at the exercise price.

Scenario 1

Assume the closing price of stock A is $30 and stock B is $5.4 on the final valuation date.
The performance of the stock is determined as follows:
(Closing price on the final valuation date/initial spot price) x 100%
Performance of stock A: $30/$50 = 60%
Performance of stock B: $5.4/$6 = 90%
Because the closing price of stock A on the final valuation date is lower than the knock-in price, and has triggered the at-expiry knock-in event.
Stock A is the worst performing stock. You will receive the following number of shares A on the settlement date: (Nominal amount / Exercise price of stock A) = $100,000/$40 = 2,500 shares
Based on the final price, the market value of your shares will be worth less than your original investment, representing a paper loss of: $100,000 - ($30 x 2,500 shares) = $25,000
Coupon per annum is 9% and you will receive the following ELI coupon payment: $100,000 X 9% X 6/12 ＝$4,500
If the coupon income is included, the paper loss of this investment is: $4,500 - $25,000 = ($20,500)

Scenario 2

Assume the closing price of stock A is $39 and stock B is $5.7 on the final valuation date.
The performance of the stock is determined as follows:
(Closing price on the final valuation date/initial spot price) x 100%
Performance of stock A: $39/$50 = 78%
Performance of stock B: $5.7/$6 = 95%
The final performance of both stock A and stock B is higher than the knock-in price. There is no at-expiry knock-in event on the final valuation date.You will receive a cash amount equal to the nominal amount, that is, the principal of $100,000 and the 6-month ELI coupon of $4,500.

Scenario 3

Assuming that on the last day of the second month the closing price of stock A is $53 and stock B is $6.48.
The performance of the stock is determined as follows:
(Closing price on the final valuation date/initial spot price) x 100%
Performance of stock A: $53/$50 = 106%
Performance of stock B: $6.48/$6 = 108%
The closing price of stock A and stock B on the last day of the second month is higher than the callable price, which triggers the callable mechanism. You will receive a principal of $100,000 and a 2-month ELI coupon of $1,500.
Price movement of stock A under different scenarios
Price movement of stock A under different scenarios
Please note that the above examples and figures are purely hypothetical and are for illustrative purposes only.

The above products and services are bound by the related terms and conditions. Please contact our staff for details.

Apply Online
Hotline +852 2903 8343
Visit Our Branches

Risk Disclosure
Investment involves risks. The prices of investment products fluctuate, sometimes dramatically, and may become valueless. Investment products are not equivalent to or alternatives of time deposits. Before making any investment decisions, customers are encouraged to consult their own independent financial advisors and read the relevant offering documents for further details including the risk factors in order to ensure that they fully understand the risks associated with the investment products.

Disclaimer
This webpage does not constitute advice to buy or sell, or an offer with respect to any investment products. Any offer, invitation or recommendation to any customers to enter into any investment transaction does not constitute any prediction of likely future movements in prices of any investment products. This webpage is issued by China Construction Bank (Asia) Corporation Limited, and has not been reviewed by the Securities and Futures Commission or any other regulatory authorities in Hong Kong.

Major Risks

Before you invest, make sure you fully understand the product’s features and risks. Some of the key risks of ELIs you should watch out for include:

  • Not principal protected: ELIs are not principal protected. You may suffer a loss if the price(s) of the reference asset(s) of an ELI go against your view. In extreme cases, you could lose your entire investment.
  • Limited potential gain: The potential gain on your ELI may be capped at a predetermined level specified by the issuer.
  • Credit risk of the issuer: When you purchase an ELI, you rely on the credit-worthiness of the issuer. In case of default or insolvency of the issuer, you will have to rely on your distributor to take action on your behalf to claim as an unsecured creditor of the issuer regardless of the performance of the reference asset(s).
  • No collateral: ELIs are not secured on any assets or collateral.
  • Limited market making: Issuers may provide limited market making arrangement for their ELIs. However, if you try to terminate an ELI before maturity under the market making arrangement provided by the issuer, you may receive an amount which is substantially less than your original investment amount.
  • Investing in an ELI is not the same as investing in the reference asset(s): During the investment period, you have no rights in the reference asset(s). Changes in the market prices of such reference asset(s) may not lead to a corresponding change in the market value and/or potential payout of the ELI.
  • Conflicts of interest: Issuer of an ELI may also play different roles, such as the arranger, the market agent and the calculation agent of the ELI. Conflicts of interest may arise from the different roles played by the issuer, its subsidiaries and affiliates in connection with the ELI.
  • Risk relating to forex: Currency exchange rates are affected by a wide range of factors, including national and international financial and economic conditions, political and natural events. The effect of normal market forces may at times be countered by intervention by central banks and other bodies. At times, exchange rates, and prices linked to such rates, may rise or fall rapidly.
  • Risk relating to RMB: RMB is subject to foreign exchange control by the central government of the People’s Republic of China. There is currently a limited pool of RMB outside the PRC and any tightening of foreign exchange control by the PRC central government may adversely affect the liquidity of offshore RMB, and the market value of our RMB-denominated ELIs.

Please refer to the offering documents for further details, including fees and charges and risk factors.

The above products and services are bound by the related terms and conditions. Please contact our staff for details.

Apply Online
Hotline +852 2903 8343
Visit Our Branches

Risk Disclosure
Investment involves risks. The prices of investment products fluctuate, sometimes dramatically, and may become valueless. Investment products are not equivalent to or alternatives of time deposits. Before making any investment decisions, customers are encouraged to consult their own independent financial advisors and read the relevant offering documents for further details including the risk factors in order to ensure that they fully understand the risks associated with the investment products.

Disclaimer
This webpage does not constitute advice to buy or sell, or an offer with respect to any investment products. Any offer, invitation or recommendation to any customers to enter into any investment transaction does not constitute any prediction of likely future movements in prices of any investment products. This webpage is issued by China Construction Bank (Asia) Corporation Limited, and has not been reviewed by the Securities and Futures Commission or any other regulatory authorities in Hong Kong.