HSBC has launched 100+ Series China Region Investment for Australian investors with access to the equity markets in some of Asia’s growing economies.
The new structured investment product, offering capital protected exposure to equity indices in China, Hong Kong and Taiwan with a 5-year investment term, is the fourth product in HSBC’s 100+ Series of structured investment products.
The HSBC 100+ Series China Region Investment is a capital protected product with the return on the investment linked to the performance of the underlying indices, an equally weighted performance of: the Hang Seng Index; the MSCI Taiwan; and the iShares FTSE/Xinhua A50 China Index Exchange Traded Fund.
Investors can choose between a growth or income version of the investment or a combination of the two. The growth version provides a return that is 100% of the performance of the underlying indices over the five year investment term and averaged over monthly observations made in the final six months of the investment term, up to a growth cap level of 115% (indicative at the date of the PDS).
The income version of the investment, suited to investors looking for regular income, provides a return that is 100% of the annualised return of the underlying indices, up to an income cap level of 13.2% p.a. (indicative at the date of the PDS). The annualised return is the underlying indices return divided by the number of years of the investment.
Ian Collins, head of sales in global markets for HSBC Bank Australia, said: “The China Region Investment is responding to local investor demand for investments that provide access to the outstanding growth potential in emerging markets, in particular, Greater China.
“It’s designed for investors who want to access the upside exposure of the Chinese growth story with the security of full capital protection in the event of market corrections. It’s also distinct in its ability to give investors a choice between receiving returns as capital growth or as regular income, catering to different cash flow needs.
“Supported by strong Chinese consumption, we expect both China and Hong Kong’s equity markets to trend up in 2010 as China’s wealth continues to rise. Similarly, Taiwan’s equity market is expected to outperform as cross-strait political tensions thaw. The China Region Investment gives Australian investors access to that upside potential.”