Equity Linked Instruments(ELI)
Product
Equity Linked Instruments (ELI)
Description
Equity Linked Instruments services for personal customers are provided by Bank of China (Macau) Limited while Equity Linked Instruments services for corporate and institutional customers are provided by Bank of China Limited Macau Branch. ELI is a high risk, high potential return structured product linked with Hong Kong stocks. It cannot be traded in any exchange counter and is not principal-protected. ELI can be linked with different stocks, strike price and investment period according to your expected price movement of the stock. If the price of the linked stock remains stable and appreciate gradually, investors will earn the interest guaranteed; otherwise, investors will buy the linked stock at a price lower than the market price on the Price Fixing Date.
Features
1. Investment period normally runs from 1 to 6 months
2. The yield return is not affected by the performance of the linked stocks during the investment period.
3. The yield can be up to 10% to 30%, or even higher.
4. A popular strategy to invest in stocks indirectly.
5. Investors may be able to buy stocks at a discounted price.
6. Suitable for those investors with a positive medium to long term view on stock price and with a strategy to earn interest while the stock price is moving sideways.
For example
| Principal protected | No |
| Investment period | 30 days |
| Currency | HKD |
| Underlying Asset | Stock A |
| Strike Price | 10.2672（93% of the spot price 11.04） |
| Buying Price | 99.01% of the face value |
| Yield | 12.15% p.a. |
Product return:
| Scenario1 | If the price of stock A on the price fixing day is HKD11.0 which is higher than the strike price HKD10.2672, investor will receive the face value of the ELI including the interest. |
| Scenario2 | If the price of stock A on the price fixing day is HKD10.0 which is lower than the strike price HKD10.2672, investor will receive the specified quantity of stock A at the pre-set conversion price (total face value of the instruments divided by strike price). |
| Scenario3 | If the price of stock A on the price fixing day equals to strike price HKD10.2672, the result will be as same as scenario 1. |
Eligible Customers
Experienced investors with a high risk appetite.
Application Method
Please visit our sub-branches personally for account opening and subscription of ELI.
Risk Disclosure
ELI is not a capital preservation product. An ELI represents an investment tool structured in the form of an instrument linked to a stock option, whereby the investment return of the instrument is linked to the performance of a single stock or a basket of stocks. Changes in the price of the underlying stock or basket of stocks may affect the investment return of the ELI and its market value. The investment return is bounded by the agreed terms of the ELI. The ELI holder will not receive more returns than the amount specified in the terms no matter the linked stock rises above the ELI holder’s expectation. It is also possible that the holder can only get back the linked stocks. Since stock prices can move sharply upwards or downwards in a short space of time, an investor may suffer a total loss of investment.
The above information is just a brief introduction of the major risks regarding ELI, and it does not contain all the information concerning the product.
Before making any investment decision, you should read all related sales documents to gain a full understanding of the characteristics, structure, costs and risks of the product. You should carry out your own research, analysis and prudent consideration based on your own financial conditions and investment goals and make sure that you have fully understood the nature of and risks relating to the product. You are also recommended to consult your professional advisers to ascertain whether this product is suitable for you. Should you have any question on the above information, please seek professional advice from an independent third party before making any instruction.
