Callable ELI –
Providing fixed amount of potential cash coupon periodically
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.
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.
We provide three types of ELI to satisfy different investment targets.
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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 ? |
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Callable ELI –
Providing fixed amount of potential cash coupon periodically |
✔ | ✔ | ✔ | |
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Potential Performance Return (PPR) ELI –
Providing floating amount of potential cash return at maturity |
✔ | |||
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Knocked-Out Performance ELI –
Providing floating amount of potential cash return at maturity
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✔ | ✔ | ✔ |
* 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
Callable ELIs Illustrative Scenario
On or before the expiry date, if the closing price of the worst-performing asset is at or above the Call Price, the autocall condition is satisfied and the ELI will be early redeemed by issuer.
You will receive:
Fixed potential cash coupon amount for each calculation period before the call date; AND
Full redemption of the invested amount and any accrued potential cash coupon amount on settlement date.
If the ELI has not been early redeemed, on expiry date, the closing price of the worst-performing asset is at or above exercise price / knock-in event has not been triggered.
At maturity, you will receive:
Full redemption of the invested amount; AND
Any potential cash coupn amount for the final calculation period.
If the ELI has not been early redeemed, on expiry date, the closing price of the worst-performing asset is below exercise price / knock-in price (for product with expiry knock-in feature).
At maturity, you will receive:
Delivery of the worst performing asset and (if applicable) cash payment for any fractional shares of the worst performing assets; AND
Any potential cash coupon amount for the final calculation period.
If the ELI has not been early redeemed and daily knock-in event has been triggered, on maturity date, the closing price of the worst-performing asset is below exercise price.
At maturity, you will receive:
Delivery of the worst performing asset and (if applicable) cash payment for any fractional shares of the worst performing assets;AND
Any potential cash coupon amount for the final calculation period.
The Issuer (or guarantor, if applicable) becomes insolvent or default on its obligations, you can only claim as its unsecured creditor. In the worst-case scenario, you could lose all of your investment.
Interested to know more about ELIs? Please visit us at your nearest branch or contact us at 2287 6788.
The photos, details and coupon rate shown are for reference only.
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.
Remark:
* inMotion currently offers Callable ELI products only. For a wider selection of ELI types, please subscribe via any of our branches.
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.
You will receive fixed potential cash coupon amount for each calculation period before the call date*; AND
You will receive full redemption of the invested amount and any accrued potential cash coupon amount** on settlement date.
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.
You will receive fixed potential cash coupon amount at each calculation period payment date*; AND
You 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.
You will receive fixed potential cash coupon amount at each calculation period payment date*; AND
You 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.
Based on the final price, the market value of the shares will be worth less than your original investment.
In 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.
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.
You will receive fixed potential cash distribution amount on settlement date; AND
You 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.
You will receive fixed potential cash distribution amount on settlement date; AND
You will receive full redemption of the invested amount on settlement date.
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.
