Equity Linked Investments

Equity Linked Investment (ELIs) involving derivatives. The investment decision is yours but you should not invest in these products unless the intermediary who sells them to you has explained to you that the products are suitable for you having regard to your financial situation, investment experience and investment objectives. ELIs is a Complex Product whose terms, features and risks are not reasonably likely to be understood by a retail investor because of its complex structure. You should exercise caution when making any relevant transactions. You should study the risk factors set out in the offering documents for the ELIs before you make any investment decision.

Equity Linked Investment (ELIs) are not equivalent to time deposits and are not principal protected. They are unlisted structured investment products embedded with derivatives. ELIs are not listed on any stock exchange and are not covered by the Investor Compensation Fund in Hong Kong. ELIs are not secured on any of issuer’s assets or any collateral. ELIs constitute general, unsecured and unsubordinated contractual obligations of issuer or guarantor and of no other person. When you buy the ELIs, you will be relying on the issuer’s or guarantor’s creditworthiness. If the issuer or guarantor becomes insolvent or default on the issuer’s or guarantor’s obligation under the ELIs, in the worst case scenario, you could lose all of your investment. Buying ELIs is not the same as buying the linked/reference stocks. You have no rights in the linked/reference stocks during the investment period (except where the linked /reference stock as of the valuation date/ expiry date is determined to be deliverable to you on the settlement date, you will be entitled to the rights in such linked/reference stock as from the valuation date/ expiry date). ELLs are designed to be held until expiry. Issuers will only provide limited market making arrangement for their ELIs. If you sell your investment in ELIs before expiry, you may receive an amount which is substantially less than your original investment amount. Some ELIs may contain an autocall feature / condition. If the autocall feature is triggered /autocall condition is satisfied, the ELIs will be terminated before the expiry date. Regarding the product details and risk disclosure of Equity Linked Investments, please refer to relevant offering documents. You should not invest in the ELIs based on this promotional material alone. If you have any questions on the nature and related risks of this investment product, you should obtain independent professional advice before making any investment decision.