Structured Products(DBS designed products)

Equity Linked Convertible Non-Principal Protected Structured Investment Product

Non-Principal Protected Structured Investment Product – Convertible Equity Linked Investment Product is linked to overseas market and with high investment risk. There is no guarantee on the principal or return amount under this product.


Advantages:

  • Customized investment product with a minimum investment amount of RMB 500K (or its equivalent in foreign currency)*.

  • Linked to overseas equities in Hong Kong and US markets. More overseas markets /underlying equities will be available soon.

  • Innovated product structure. Make your own choice on parameters such as underlying equity, tenor, strike price, settlement currency etc.**

* You could subscribe for the product only if you have stock investment experience and your FNA result shows that your risk profile matches risk rating of the products.

** The Bank will from time to time adjust the product parameters available for your choice as appropriate.


Product Series:

  • Basic Series

    • Structure 1 – Basic Class : Initially invests in a non-principal protected structured investment product – “Investment Product A”, whose performance is linked to the performance of an underlying equity. If the price of underlying equity is equal to or goes above the strike price at maturity, “Investment Product A” will be settled in cash, and customer will get the principal and a pre-agreed return. If the price of underlying equity goes below the strike price at maturity, the product will be then automatically converted into investment in another non-principal protected structured investment product - “Investment Product B” according to the strike price (Physical Settlement). There will be unrealized loss on book upon the conversion. Investment Product B will directly track the performance of the same underlying equity as “Investment Product A”, the price fluctuation of the underlying equity will directly affect the value of customer’s investment and customer may suffer a substantial loss of principal due to falling price of underlying equity.

    • Structure 2 – Knock Out Class : Embed Knock Out feature based on Structure 1 to catch market hike chance. Product will be early terminated if Knock Out Event occurs, and customer could obtain principal and pre-agreed coupon in cash prior to maturity.

      Equity Linked Convertible Non-Principal Protected Structured Investment Product

  • Fixed Coupon Series

    Initially invests in a non-principal protected structured investment product -“Investment Product A”, whose performance is linked to the performance of relevant underlying equity/underlying equities. During the tenor of Investment Product A, customer will get a return calculated at a pre-determined annualized return rate if knock-out event never occurs. After the first observation period, if knock-out event occurs, the product will be early terminated. If knock-out event does not occur and the relevant underlying equity/underlying equities perform(s) well, then Investment Product A will be settled in cash, customer will get the principal and the relevant return. But if a knock-in event occurs, and the final closing price of worst performing equity is lower than pre-agreed strike price on the fixing day of Investment Product A, the product will be then automatically converted into the investment in another non-principal protected structured investment product - “Investment Product B” according to the strike price (Physical Settlement). There will be unrealized loss on book upon the conversion. Investment Product B will directly track the performance of the worst performing equity under “Investment Product A”, the price fluctuation of the underlying equity will directly affect the value of investment and customer may suffer a substantial loss of principal due to falling price of underlying equity.

    • Fixed Coupon Feature:Customer can get cash coupon regularly within agreed period.

    • Knock Out Feature:Product may be early terminated once the market hike chance is caught and fund liquidity could be enhanced.

    • Knock In Feature:Provide down-side protection to lower the risk of physical settlement. Cash settlement will be applied upon maturity if the price of the worst performing underlying equity never touches pre-defined Knock In Price.

      • Structure A – American Knock In: observe the Knock In event on daily basis
      • Structure B – European Knock In: observe the Knock In event on fixing date

      Equity Linked Convertible Non-Principal Protected Structured Investment Product


Product Risk Disclosure:

  • The product is high risk product and there is no guarantee on the principal or return amount under this product. Customer may suffer a significant loss of the principal amount. Please be cautious in making any investment decision.

  • During the tenor of Investment Product A, customer cannot early redeem the product.

  • If Physical Settlement is applied (i.e. the product is converted into Investment Product B), the market value of Investment Product B will be less than the principal amount and customer will suffer unrealized loss on book upon the conversion. Investment Product B will track the price of underlying equity directly, and if the price of underlying equity keeps dropping, customer may suffer significant loss in principal.

  • During the period of Investment Product B, the Bank will charge certain fees, including 0.5% transaction rate (reflected by the 99.5% Participation Rate) and 0.30% Product Maintenance Fee per annum. Such fees will be reflected in the market value of Investment Product and will be deducted at the time of redemption. The longer customer holds Investment Product B, the more Product Maintenance Fee the customer will bear. Customer may suffer principal loss as the price increase of underlying equity may be offset by relevant fee charge. Besides, if the settlement currency is different from reference currency, customer have to take the exchange rate fluctuation risk during the period of Investment Product B. Even if the price of underlying equity rises to a level higher than the strike price, customer may still suffer principal loss as the price increase of underlying equity may be offset by the depreciation of reference currency against settlement currency.

For more detailed risk disclosure, please refer to the Risk Disclosure Statement of the products.

How to Know More

If you want to know more about Equity Linked Convertible Non-Principal Protected Structured Investment Product, please:

  • Contact your Treasures Relationship Manager or visit any of our branches.

  • Call our 24-hour hotline at 400 820 8988.

Please click the Useful Links below to know more about the Qualified Investors Instructions.

Note: Wealth management products are not deposits and have investment risks, and customers should be cautious in making any investment.

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