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Equity Linked Product(s) are complex products embedded with derivatives. The investment decision is yours but you should not invest in the product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives. You should not invest in this product based on this material alone.

Equity Linked Products provide no guarantee of return or yield on investment. They are NOT principal protected and investors could lose all of your investment. Please refer to the risk disclosure statements and offering documents for further details. Before making any investment decision, you should read and understand the relevant offering documents for details and the risks involved and carefully consider your financial situation, investment experience and investment objectives. You should seek independent professional advice if needed.

What is Equity-Linked Investment?

Equity Linked Investments (ELI) are unlisted structured investment products which involves derivatives and the investment returns are linked to the performance of the underlying stock. Some issuers include one or more additional special features in their ELIs. These features may affect the potential gain or loss of the ELIs in different ways.

Depending on your financial goals, you can develop your own personalized investment portfolio and earn higher potential investment returns by selecting number of underlying stocks, appropriate investment tenor, strike price and airbag price etc.

Product Features

Higher potential investment return
In certain circumstances, you may earn higher potential investment returns than conventional time deposits from ELI, depending on changes in the values of the underlying assets.
Flexible tenor
ELIs offer flexible tenors ranging from 2 months to 11 months.
Investment amount and various currency choices
Minimum Investment Amount: HKD 100,000 or its equivalent in other currencies.
Currencies include HKD, CNY, USD and other major currencies.
Diversified linked stocks across US and HK stocks market
ELIs can be linked to a single stock or a basket of stocks from both the US and HK stock markets covering multiple sectors to achieve diversification.
Knock-in feature (Airbag feature)
Some ELIs may contain airbag features. Settlement in cash or physical stock will depend on any trigger events occurred or not. Airbag level for a reference stock is usually expressed as a percentage of its initial spot price. It is set at a level lower than the strike price.
Callable feature
ELI with callable feature will be early called/early terminated if certain conditions were met, you may receive the full redemption of the invested amount and potential cash dividend amount, if any, up to the call date, which is earlier than the scheduled expiry date.
Callable feature
While most of the ELIs are not principal protected, some ELIs provide fully or partially principal protection at expiry regardless of the reference stock's performance. Principal protection level can be adjusted to earn higher potential return to match your investment objective.

Product Types

We provide three types of ELI to satisfy different investment targets.

Callable Feature
What is Callable Feature ? 		Knock-in Feature (Airbag feature)
What is Airbag Feature ? 		Knock-out Feature
What is Knock-out Feature ? 		Principal protected at maturity
What is Principal protected at maturity ?
Callable ELI
Callable ELI
Callable ELI –
Providing fixed amount of potential cash coupon periodically
 ✔ ✔
Potential Performance Return (PPR) ELI
Potential Performance Return (PPR) ELI
Potential Performance Return (PPR) ELI –
Providing floating amount of potential cash return at maturity
 ✔
Callable ELI
Callable ELI
Knocked-Out Performance ELI –
Providing floating amount of potential cash return at maturity
✔ ✔ ✔

* Depending on issuer, fixed coupon for that period may not be distributed if the closing price of worst performing asset price is below the barrier price on the specified calculation period end date.
** Accrued potential cash dividend amount is calculated on a pro rata basis from (but excluding) the relevant calculation period start date to immediately preceding the call date.
# The at-expiry knock-in event condition subjects to offering document from respective issuers.
The above illustrative examples are hypothetical and provided for illustration purpose only. For the actual terms of the products, including but not limited to, the rate, tenor and features, please refer to the terms and conditions set out in the relevant offering and sales documents. The Bank is not making any representations or warranties of future movements of the exchange rates or products in providing the illustrative examples. They do not represent all possible gain or loss outcomes or describe all possible factors that may affect the final product payout. The illustrative examples are for reference only and please do not rely on them when making an investment decision

Popular ELI Underlyings

List below is the popular# HK stocks and US stocks linked to Equity-Linked Investment offered by CNCBI in the specified offer period^.


Popular HK Stock Underlying

Stock Name Stock Code Reference Fixed Cash Dividend Rate may reach*
HSBC Holdings plc 0005.HK 8.70% p.a.
Tencent Holdings Ltd. 0700.HK 16.45% p.a.
AIA Group Ltd. 1299.HK 17.73% p.a.
Ping An Insurance (Group) Co. of China Ltd. 2318.HK 22.83% p.a.
China Life Insurance Co. Ltd. 2628.HK 20.65% p.a.
Tracker Fund of Hong Kong 2800.HK 10.05% p.a.
Meituan Dianping 3690.HK 28.06% p.a.
China Merchants Bank Co., Ltd. 3968.HK 22.22% p.a.
JD.COM, INC. 9618.HK 27.62% p.a.
ALIBABA GROUP HOLDING LTD. 9988.HK 18.58% p.a.

Popular US Stock Underlying

Stock Name Stock Code Reference Fixed Cash Dividend Rate may reach*
Apple Inc AAPL 11.82% p.a.
AMAZON.COM INC AMZN 17.12% p.a.
ALPHABET INC GOOGL 15.51% p.a.
INTEL CORP INTC 22.35% p.a.
Microsoft Corp MSFT 12.58% p.a.
Tesla Inc TSLA 30.97% p.a.
^Last update and quotation date: 05/04/2024
Offer Period: 01/03/2024 to 31/03/2024

ELI is not equivalent to time deposits or its substitute and provide no guarantee of return or yield on investment. It is NOT protected by the Deposit Protection Scheme in Hong Kong. Sales data accords to CNCBI equity-linked investment sales record data within the aforementioned offer period.

*Fixed cash dividend rate is per annum and determined on quotation date by currency (HKD), tenor (6 months), exercise price (95%) and autocall price (110%) and it is for reference only.

#Popular Stock Underlyings refer to the HK and US Stocks which are the most frequently chosen as the underlying stocks of Equity-Linked Investment offered by CNCBI during the aforementioned offer period^, and are arranged in alphabetical order of stock code. The above information is past sales record and for reference only. It is not and shall not be considered as investment advice. It does not constitute any offer or solicitation of offer to subscribe, transact or redeem any investment products. If you would like to obtain the latest information on the relevant products, please contact our relationship manager. Suitability assessment is required before subscribing for the relevant products.

FAQs

In general, ELIs are not principal-protected. However, some ELIs provide fully or partially principal protection at maturity.
Please note that the full amount of your investment is at risk and be prepared to bear full financial responsibility.
An equity-linked investment (ELI) is a structured investment product. It is NOT a protected deposit and it is NOT protected under the Deposit Protection Scheme in Hong Kong.
The product risk level of non-principal-protected ELIs is 4 or 5, depending on the underlying assets, while the product risk level of fully or partially principal-protected ELIs may be lower.
The minimum investment amount is HKD 100,000 or its equivalent in other currencies.
You can choose currencies including HKD, CNY, USD and other major currencies.
The settlement currency for any cash payment under an ELI will usually be the same as the currency used when you subscribed the ELI.
The investment periods for ELI range from 2 months to 11 months.
Not all HK and US listed stock can be linked to ELI. The underlying stock available for ELI is subject to the eligible underlying stock list maintained by the Bank and acceptable to the issuer. For details, please contact our staff or visit us at your nearest branch.
Subject to the offering document, up to four eligible underlying stocks from the same stock market can be linked to ELIs.
ELIs linked to HK stock(s) subscription service hours:
From 9:00 am to 2:30 pm on trading day from Monday to Friday (HKT) (except for Hong Kong public holidays, half day trading, or market disruption day).

ELIs linked to US stock(s) subscription service hours:
From 9:00 am to 4:45 pm on trading day from Monday to Friday (HKT) (except for Hong Kong and United States public holidays, half day trading, or market disruption day).

*Actual service hours are subject to the situation of individual branches on that day. Any late subscription will not be accepted by the Bank and issuer.
ELIs linked to US stocks are only offered to individual customers. A signed and non-expired W-8BEN form must be obtained from you before proceeding for the subscription of ELIs linked to US stocks.
ELIs are currently only available for subscription at branch. Please contact our staff or visit us at your nearest branch.
Please refer to “Investment products service fees and charges” or contact our staff.
You can contact our staff or visit us at your nearest branch at the abovementioned subscription service hours.

Interested to know more?

Interested to know more about ELIs? Please visit us at your nearest branch or contact us at 2287 6788.

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Risk Disclosure Statements for Equity-Linked Investments

  • Equity-linked Investment (ELI) is a structured product and complex investment products involving derivatives. You should exercise caution in relation to this product.
  • ELI is not equivalent to time deposits or its substitute and provide no guarantee of return or yield on investment. It is NOT protected by the Deposit Protection Scheme in Hong Kong.
  • ELI is NOT principal protected and is NOT secured by any asset or collateral. In the worst case scenario, you could lose all of your investment.
  • The maximum potential gain may be limited. It is possible that you may not receive any potential distribution amount for the entire scheduled tenor of this product. You may, at settlement, receive physical delivery of reference asset(s).
  • Investing in ELI is not the same as investing in the reference assets. During the investment period, you have no rights in the reference asset(s). Changes in the market price of the reference asset may not lead to a corresponding change in the market value of, or your potential payout of the product.
  • If you invest in ELI, they are relying upon the creditworthiness of the issuer and, as the case may be, the guarantor and no other person. You may get nothing back if the issuer and/or the guarantor becomes insolvent or defaults in performing its obligations in relation to the product.
  • ELI involves risks, including but not limited to re-investment risk, risks of early termination, limited market making arrangements, conflict of interest, market risk, liquidity risk, currency/exchange rate risk and risks relating to Renminbi.
  • The price or value of the ELIs may move up or down, and may even become valueless. It is as likely that losses will be incurred rather than profit made as a result of subscribing for, buying and selling the ELIs. Past performance is not indicative of future performance.
  • If the ELI is linked to US underlyings, you should also take note on the relevant risks, such as risks relating to difference in trading days and hours and their implications, taxation risks and certain information about the linked stocks may be available in English only.
  • Before making any investment decision, you should read and understand the relevant offering documents for details and the risks involved and carefully consider your financial situation, investment experience and investment objectives. You should seek independent professional advice if needed.
  • ELI is unlisted and not covered by the Hong Kong Investor Compensation Fund.
  • SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance.
  • Limited market making arrangements are available and you may suffer a loss if you sell your ELIs before expiry - ELIs are designed to be held until expiry. If you try to sell your ELIs before expiry, the amount you receive for each ELI may be substantially less than your original investment amount.
  • Potential and actual conflicts of interest may arise from the different roles played by the issuer and its subsidiaries and affiliates in connection with the Product, which may be adverse to your interest in the Product.

This webpage does not itself constitute any offer of, or invitation by or on behalf of China CITIC Bank International Limited (the "Bank") to any person to purchase or sell or acquire or invest in any investment products. You should not only base on this webpage alone to make investment decisions. China CITIC Bank International Limited is an authorized institution under the Banking Ordinance and is regulated by the Hong Kong Monetary Authority.
This webpage has not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.

What is Callable Feature ?

On or before the expiry date, if the closing price of the worst-performing asset is at or above the autocall price, the autocall condition is satisfied and the ELI will be early redeemed by issuer.

starYou will receive fixed potential cash coupon amount for each calculation period before the call date*; AND

starYou will receive full redemption of the invested amount and any accrued potential cash coupon amount** on settlement date.

What is Airbag Feature ?

On expiry date, if the closing price of the worst-performing asset is below the strike price. The payoff will depend on whether its closing price is at or below its knock-in price (airbag price).

If its closing price is above the knock-in price#, the knock-in event is not triggered.

starYou will receive fixed potential cash coupon amount at each calculation period payment date*; AND

starYou will receive full redemption of the invested amount on settlement date.

If its closing price is at or below the knock-in price#, the knock-in event is triggered.

starYou will receive fixed potential cash coupon amount at each calculation period payment date*; AND

starYou will receive physical settlement amount: a whole number of shares of the worst performing assets at strike price as of the expiry date and any fractional shares of the worst performing assets in cash.

starBased on the final price, the market value of the shares will be worth less than your original investment.

starIn extreme case, the physical settlement amount could be worth nothing when the closing price drops to zero or issuer becomes insolvent and you could lose 100% of the initial investment amount.

What is Knock-out Feature ?

There is two types of Knock-out Feature, I) Bullish and II) Bearish.

I) Bullish
On or before the expiry date, if the closing price of the underlying stock is above the knock-out barrier price, the Knock-out Event is considered triggered and the cash distribution amount received at maturity will be fixed.

starYou will receive fixed potential cash distribution amount on settlement date; AND

starYou will receive full redemption of the invested amount on settlement date.

II) Bearish
On or before the expiry date, if the closing price of the underlying stock is below the knock-out barrier price, the Knock-out Event is considered triggered and the cash distribution amount received at maturity will be fixed.

starYou will receive fixed potential cash distribution amount on settlement date; AND

starYou will receive full redemption of the invested amount on settlement date.

What is Principal protected at maturity ?

Regardless of the reference stock’s performance, some ELIs provide fully or partially principal protection at expiry regardless of the reference stock’s performance. Principal protection level can be adjusted to earn higher potential return to match your investment objective.