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(Note: Investor should note that the following investment scenario regarding
to "Daily Chance" Autocallable assume an 80% Capital Protection Percentage,
which should not be treated as an offer or product term specification
issued by the bank. For any specific Capital Protection Percentage
as well as other product term, it is recommended to refer to the
Term Sheet issued for a specific tranche by the Bank from time to
time.)
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Base Currency: USD |
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Investment Amount: USD 100,000 |
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Guaranteed Investment Amount Percentage:80% |
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Guaranteed Investment Amount: Investment Amount x Guaranteed Investment Amount
Percentage
USD100, 000 x80%=USD 80,000 |
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Conditional Return: 6.0% |
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Bonus Return: 2.1667% for each Observation Period |
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Investment Period: around 18 months (4 months for minimum investment period,
if early maturity occurs ) |
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Observation Period: Pre-determined by The Bank (refer to term sheet for specific
details) |
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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 70.00 |
HKD 12.00 |
HKD 10.00 |
HKD 9.50 |
Knock-In
Level
(60% of Initial Stock Price)
|
HKD 42.00 |
HKD 7.20 |
HKD 6.00 |
HKD 5.70 |
| Conditional
Return Trigger Stock Price (90% of Initial Stock Price) |
HKD 63.00 |
HKD 10.80 |
HKD 9.00 |
HKD 8.55 |
| Bonus
Return Trigger Stock Price (90% of Initial Stock Price) |
HKD 63.00 |
HKD 10.80 |
HKD 9.00 |
HKD 8.55 |
| Early
Maturity Trigger Stock Price (100% of Initial Stock Price) |
HKD 70.00 |
HKD 12.00 |
HKD 10.00 |
HKD 9.50 |
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Early maturity observation date, early maturity date, Investment Return Payment
Date and relevant Investment Return Rate: |
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In respect of the first 3 Observation Periods; if the Closing Stock Price of
the Worst Performing Stock in the underlying Stock Basket is equal
to or greater than its Conditional Return Trigger Stock Price on
any Exchange Business Day in the first 3 Observation Periods, investors
can receive Conditional Return on the Investment Return Payment Date
of the 3rd Observation Period.
Starting from the beginning of the 4th Observation
Period, in respect of each Observation Period, if the Closing Stock
Price of the Worst Performing Stock in the underlying Stock Basket is
equal to or greater than its Bonus Return Trigger Stock Price on any Exchange Business Day in such Observation Period;
investors can receive Bonus Return on the relevant Bonus Return for each period Payment Dates; and starting from the
beginning of the 4th Observation Period, in respect of each Observation Period, if the Closing Stock Price of the Worst
Performing Stock in the underlying Stock Basket is equal to or greater than its Early Maturity Trigger Stock Price on any Exchange
Business Day in such Observation Period, the Partially CPI Product can be early matured or matured on the relevant
Early Maturity Date or Maturity Date (as the case may be).
Normally, an Observation Period lasts for one month.
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|
Observation Period |
Early Maturity Observation Day |
Early Maturity Dates / Maturity Date (as the case may be) |
Corresponding Return |
1
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2
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3
|
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4
|
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Any
day of Observation Period 4
|
At
the end of Observation Period 4
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5
|
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Any
day of Observation Period 5
|
At
the end of Observation Period 5
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6
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Any
day of Observation Period 6
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At
the end of Observation Period 6
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7
|
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Any
day of Observation Period 7
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At
the end of Observation Period 7
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8
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Any
day of Observation Period 8
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At
the end of Observation Period 8
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9
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Any
day of Observation Period 9
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At
the end of Observation Period 9
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10
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Any
day of Observation Period 10
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At
the end of Observation Period 10
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11
|
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Any
day of Observation Period 11
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At
the end of Observation Period 11
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12
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Any
day of Observation Period 12
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At
the end of Observation Period 12
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13
|
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Any
day of Observation Period 13
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At
the end of Observation Period 13
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14
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Any
day of Observation Period 14
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At
the end of Observation Period 14
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15 |
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Any
day of Observation Period 15
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At
the end of Observation Period 15
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16 |
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Any
day of Observation Period 16
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At
the end of Observation Period 16
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17 |
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Any
day of Observation Period 17
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At
the end of Observation Period 17
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18 |
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Any
day of Observation Period 18
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At
the end of Observation Period 18
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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: |
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Investment Return (Accumulated) = Conditional Return + Bonus Return
where conditional return = 100% investment amount * conditional return
rate; and bonus return = 100% investment amount * bonus return rate
for each period * number of periods on which" bonus return" has been
triggered. |
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 2nd Exchange Business Day of 1st Observation period, 4 shares closed
above " Conditional Return Trigger Price", Conditional Return has been triggered
and is payable on the end of Observation Period 3.
In addition, if on the 1st Exchange Business Day of Observation Period 4, stock
A, B, C, and D have closed at or above the "Bonus Return Trigger Price" pre-determined
by the Bank, while the worst performer of the 4 stocks closed at or above the
"Early Maturity Trigger Price" on the 2nd Exchange Business Day of Observation
Period 4, investor can receive entire Investment Amount and relevant bonus return
on the relevant Early Maturity Date of Observation Period 4:
Investor will have received (accumulated) 100% investment amount, conditional
return, and bonus return. Details are following:
| Conditional
Return |
= 100% Investment Amount x Condition Return Rate
= USD 100,000 x 6%
= USD 6,000
|
| Bonus
Return |
= 100% Investment Amount x Bonus Return Rate x number of periods on which" bonus
return" has been triggered
= USD 100,000 x 2.1667% x 1
= USD 2,166.70
|
| Accumulated
Redemption Amount |
= 100% Investment Amount + Conditional Return + Bonus Return
= USD 100,000 + USD 6，000 + USD 2,166.70
= USD 108,166.70
|
| In the first 3 Observation Periods; the Closing Stock Price of the Worst Performing
Stock in the underlying Stock Basket is equal to or greater than its 90% of
initial Price on at least one Exchange Business Day, Conditional Return is
payable the end of 3rd Observation Period. |
|
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In the first 4 Observation Period; the Closing
Stock Price of the Worst Performing Stock in the underlying
Stock Basket is equal to or greater than its 100% of initial
Price on at least one Exchange Business Day, entire Investment
Amount and Bonus Return is payable the end of 4th Observation
Period.
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Scenario 2: The Normal Scenario
If on 2nd Exchange Business Day of 1st Observation period, 4 shares closed
above " Conditional Return Trigger Price", Conditional Return has been triggered
and is payable on the end of Observation Period 3.
In addition, suppose from the 1st Exchange Business Day of Observation Period
4 until maturity, stock A, B, C, and D have closed below the "Early Maturity
Trigger Price" pre-determined by the Bank, while the worst performer of the 4
stocks has been closed below the "Bonus Return Trigger Price"; and the Closing
Stock Price of all Stocks in the underlying Stock Basket has been above Knock-In
Level during all 18 Observation Periods.
Investor will have received (accumulated) 100% investment amount, conditional
return, and no bonus return. Details are following:
| Conditional
Return |
= 100% Investment Amount x Condition Return Rate
= USD 100,000 x 6%
= USD 6,000
|
| Bonus
Return |
= 100% Investment Amount x Bonus Return Rate x number of periods on which" bonus
return" has been triggered
= USD 100,000 x 2.1667% x 0
= USD 0
|
| Accumulated
Redemption Amount |
= 100% Investment Amount + Conditional Return + Bonus Return
= USD 100,000 + USD 6，000 + USD 0
= USD 106,000.00
|
| In the first 3 Observation Periods; the Closing Stock Price of the
Worst Performing Stock in the underlying Stock Basket is equal to
or greater than its 90% of initial Price on at least one Exchange
Business Day, Conditional Return is payable the end of 3rd Observation
Period. |
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Early Maturity has not been triggered and the worst performing stock has been
closed above bonus return trigger for all Observation periods,
investor will receive entire investment amount and no bonus return.
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Scenario 3: The Worst Scenario
If during the 1st 3 Observation Periods, the closing prices of all 4 stocks have
not been closed at or above the Conditional Return Trigger Price, Conditional
Return has not been triggered and no conditional return is payable on the end
of Observation Period 3.
In addition, suppose from the 1st Exchange Business Day of Observation Period
4 until maturity, stock A, B, C, and D have closed below the "Early Maturity
Trigger Price" pre-determined by the Bank; the worst performer of the 4 stocks
has been closed below the "Bonus Return Trigger Price"; and the worst performing
stock closed at 50% of initial stock price on last Exchange Business day of Observation
Period 18. Also suppose the Closing Stock Price of any Stock in the underlying
Stock Basket has been below Knock-In Level during all 18 Observation Periods.
Investor will have received (accumulated) 80% investment amount, no conditional
return and bonus return. Details are following:
| Conditional
Return |
= USD 0
|
| Bonus
Return |
= USD 0
|
| Accumulated
Redemption Amount |
= 80% investment amount
= USD 80,000
|
| In the first 3 Observation Periods; the Closing Stock Price of the
Worst Performing Stock in the underlying Stock Basket has been below
its 90% of initial Price on for all Exchange Business Days, no Conditional
Return is payable the end of 3rd Observation Period. |
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Bonus return and Early Maturity have not been triggered for all Observation Periods,
and the worst performing stock closed below 80% of initial price
on last Observation day, only 80% of investment amount will be
payable on maturity
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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, even may be subject to the lose of entire
investment amount.
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