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Base Currency:USD |
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Investment Amount: USD 100,000 |
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Guaranteed Investment Amount Percentage: 100% |
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Guaranteed Investment Amount: Investment Amount x Guaranteed Investment Amount Percentage = USD 100,000 x 100% = USD 100,000 |
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Investment Return Rate: 1.6667 %( 10% p.a.) |
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Investment Period: around 24 months (12 observation periods if no early maturity occurs) |
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Observation Period: two months |
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Stock Basket: stock A, stock B, stock C, stock D (all stocks are listed on main foreign stock exchanges. In this example, the stocks are assumed to be listed on The Hong Kong Stock Exchange) |
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| Underlying Stock |
Stock A |
Stock B |
Stock C |
Stock D |
| Initial Stock Price |
HKD 70 |
HKD 12 |
HKD 10 |
HKD 9.5 |
| Investment Return Trigger Stock Price ( 94%of Initial Stock Price) |
HKD 65.8 |
HKD 11.28 |
HKD 9.4 |
HKD 8.93 |
Early Maturity Trigger Stock Price
(99%of Initial Stock Price) |
HKD 69.3 |
HKD 11.88 |
HKD 9.9 |
HKD 9.41 |
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Early maturity observation date, maturity date, Investment Return Payment Date and relevant Investment Return Rate |
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In any Exchange Business Day in Observation Period, if the Closing Stock Price of the Worst Performing Stock in the Stock Basket is equal to or greater than the predetermined Investment Return Trigger Stock Price, investor can receive Investment Return on the relevant Investment Return Payment Date; and on any Early Maturity Observation Date, if the Closing Stock Price of the Worst Performing Stock in the Stock Basket is equal to or greater than the predetermined early maturity Trigger Stock Price, will be early matured on relevant Early Maturity Date and investor can receive Guaranteed Investment Amount and relevant Investment Return. |
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Observation Start Date (Inclusive) |
Observation End Date (Inclusive) |
Early Maturity Observation Dates |
Early Maturity Dates/ Maturity Dates/ Investment Return Payment Date
(as the case may be) |
Investment Return Rate |
1 |
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1.6667% |
2 |
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1.6667% |
3 |
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1.6667% |
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1.6667% |
5 |
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1.6667% |
6 |
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1.6667% |
7 |
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1.6667% |
8 |
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1.6667% |
9 |
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1.6667% |
10 |
Observation 10 Start Date
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1.6667% |
11 |
Observation 11 Start Date
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1.6667% |
12 |
Observation 12 Start Date
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1.6667% |
Data mentioned above is only for illustrative purpose. Investor can receive Investment Return on the relevant Early Maturity Date or Maturity Date or Investment Return Payment Date (as the case may be). Investment Return is calculated according to the following formula:
Investment Return = Guaranteed Investment Amount x Early Maturity Investment Return Rate
“Stock Performance” in respect of a Stock in the stock basket, is calculated by the following formula:
The Stock Performance on an Exchange Business Day during an Observation Period =（closing stock price on the relevant day - Initial Stock Price）/initial stock price x100%
In respect of an Exchange Business Day, the Worst Performing Stock will be the stock with the lowest Stock Performance on such day calculated by the formula above.
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As illustrated in following examples, the total Redemption Amount payable on the Maturity Date, Early Maturity Date, and Investment Return Payment Date is calculated as follows:
Scenario 1: The Best Scenario
If on first early maturity Observation date,( observation 1 end date)，the Closing Stock Price of the Worst Performing Stock in the stock basket (i.e. Stock B) equals to its Early Maturity Trigger Stock Price.
| Underlying Stock |
Stock A |
Stock B |
Stock C |
Stock D |
| Initial Stock Price |
HKD 70 |
HKD 12 |
HKD 10 |
HKD 9.5 |
| Closing stock price of first early maturity observation date |
HKD 75 |
HKD 11.88 |
HKD 11.5 |
HKD 11 |
Investment Return Trigger Stock Price
( 94%of Initial Stock Price) |
HKD 65.8 |
HKD 11.28 |
HKD 9.4 |
HKD 8.93 |
Early Maturity Trigger Stock Price
(99%of Initial Stock Price) |
HKD 69.3 |
HKD 11.88 |
HKD 9.9 |
HKD 9.41 |
| Stock Performance on first early maturity observation date |
7.14% |
-1.00% |
15.00% |
15.79% |
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CPI Product will be early matured on the first Early Maturity Date (first observation end date), as the Closing Stock Price of the Worst Performing Stock in the Stock Basket of CPI Product is equal to or greater than the predetermined Investment Return Trigger Stock Price on any Exchange Business Day in such Observation Period, investor can receive Guaranteed Investment Amount and relevant Investment return on the relevant Early Maturity Date:
| Redemption Amount on Early Maturity Date |
| = |
Guaranteed Investment Amount x (1 + Investment Return Rate) |
| = |
USD 100,000 x (1 + 1.6667%) |
| = |
USD 101,666.70 |
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note：Annualized Investment Return Rate around 10% |
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Scenario 2: Normal Scenario
On each early maturity observation date, Closing Stock Price of the Worst Performing Stock in the Stock Basket of CPI Product is less than Early Maturity Trigger Stock Price, and early maturity event not triggered. Investor will hold CPI Product until the Maturity Date (i.e. Observation 12 end date). The Total Investment Return will depend on the number of Observation period during which the Closing Stock Price of the Worst Performing Stock in the Stock Basket is equal to or greater than the predetermined Investment Return Trigger Stock Price on at least one Exchange Business Day. If Investment Return Trigger Event has occurred in 9 observation periods out off 12 observation periods through whole investment period, i.e. on, at least one Exchange Business Day of an observation period, Closing Stock Price of the Worst Performing Stock in the Stock Basket is equal to or greater than the predetermined Investment Return Trigger Stock Price (i.e. 94% of initial stock price), the investor will receive investment return on each 9 corresponding investment return payment dates.
| Investment Return |
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Guaranteed Investment Amount x Investment Return Rate |
| = |
USD 100,000 x 1.6667% |
| = |
USD 1,666.70 |
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| Total Investment Return (for whole investment period) |
| = |
USD 1,666.70 x 9 observation periods |
| = |
USD 15,000.30 |
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Scenario 3: The Worst Scenario
On each early maturity observation date, Closing Stock Price of the Worst Performing Stock in the Stock Basket of CPI Product is less than Early Maturity Trigger Stock Price, and early maturity event not triggered. Investor will hold CPI Product until the Maturity Date (i.e. Observation 12 end date). The Total Investment Return will depend on the number of Observation period during which the Closing Stock Price of the Worst Performing Stock in the Stock Basket is equal to or greater than the predetermined Investment Return Trigger Stock Price on at least one Exchange Business Day. If Investment Return Trigger Event has not occurred through total 12 observation periods, i.e. on, at least one Exchange Business Day of an observation period, Closing Stock Price of the Worst Performing Stock in the Stock Basket is equal to or greater than the predetermined Investment Return Trigger Stock Price (i.e. 94% of initial stock price), the investor will receive 0 investment return.
| Investment Return |
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Guaranteed Investment Amount x Investment Return Rate |
| = |
USD 100,000 x 1.6667% |
| = |
USD 1,666.70 |
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| Total Investment Return (for whole investment period) |
| = |
USD 1,666.70 x 0 observation period |
| = |
USD 0 |
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| Note: The investor should note that the investment scenarios listed above are only for product illustration, and do not mean that investors shall obtain the same or similar investment return. The Best Scenario and Normal Scenario can not represent all the investment views of all the investors. The Worst Scenario is that investor holds the product to the maturity, and only collects the guaranteed investment amount. The investor should note that if the product is terminated in advance due to the requirement of the investor, the investor may not be able to collect the entire investment amount. |
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