HSBC Malaysia is marketing a two-year product using the Hang Seng Index (HIS) as a the sole underlying for the first time. Previous tranches included the China index as part of an underlying basket.
The deposit-wrapped 2-Yr MYR Hang Seng Linked Autocallable Structured Investment will close its offer period today and is a capital-at-risk private banking product with a minimum investment of MYR250,000 ($83,023) or MYR50,000 ($16,604) for individuals with total net personal assets exceeding MYR3m ($996,282).
This income structure will pay a 7% pa monthly coupon until the product either matures or is knocked out. The product's knockout feature will be triggered if the HSI appreciates to 104% of its initial level on any of the quarterly observation dates, in which case the product will mature early returning 100% of principal along with the final coupon. If there is no knockout event, the product will return the final coupon along with 100% of initial capital at maturity, provided that the HSI does not fall 30% or more from its strike price.
Previously, only four products had been linked to the Hang Seng Index, all of which included the bourse within its basket and were launched prior to September 2009, according to the SRP database. The average tenor of the products was 4.2 years and and they were distributed by Public Bank, Maybank and Hong Leong.
This product appears in Recent Additions (Malaysia).