HSBC Australia has launched a structured product linked to the China region as part of its 100+ Series. HSBC 100+ Series China Region Investment is a five-year deferred purchase agreement offering capital-protected exposure to an equally-weighted basket consisting of the Hang Seng, MSCI Taiwan and the iShares FTSE/Xinhua A50 China Index Exchange Traded Fund. It is the fourth product in HSBC's 100+ Series.
Head of sales Ian Collins said the product is 'distinct' in offering a choice between capital growth and regular income, and thus catering to different cash flow needs. Investors can choose between growth and income tranches of the investment or a combination of the two.
The capital-protected growth tranche participates in the positive performance of the basket, capped at 115% (indicative). The basket return is calculated as the average of monthly readings over the final six months of the term. The income tranche pays a coupon calculated as the underlying indices' return divided by the number of years of the investment, capped at 13.2% pa (indicative).
The product opens on 17 May and closes 18 June for a minimum investment of A$20,000 ($18,000). The product will be available through HSBC Bank Australia and independent financial advisers.
This product is available now in Recent Additions (Australia).