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Rebate Offer
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2.0% (73%)
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Minimum Initial Investment
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$20,000
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Expected Close Date
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CLOSED
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HSBC 100+ Series China Investment offers investors with medium-term exposure to the China "A" Shares market with the comfort of 100% capital protection at maturity in 5 years time. The Investment is an opportunity to receive a potential return that is linked to the performance of the China A Shares Fund and cash, known as the Strategy Value which will be calculated in accordance with the Volatility Control Strategy.
China A Shares Fund
China "A" Shares are traded on the Shanghai and Shenzhen stock exchanges with high barriers to entry for foreign individuals due to Chinese Government restrictions. Investors in the 100+ Series China Investment gain exposure to China A shares through the China A Shares Fund, which is the iShares FTSE/Xinhua A 50 China Index Exchange Traded Fund. The Fund's objective is to track the performance of the FTSE/Xinhua A 50 Index which comprises the largest 50 "A" Share companies in China.
Key Benefits
- 100% capital protection if the investment is held to Maturity^.
- Exposure to the domestic China A Shares equity market
- An investment strategy that's controlled for volatility to achieve a more stable return than investing directly in the China A Share Fund.
Strategy Value and Volatility Control Strategy
The Strategy Value is based on the performance of the China A Shares Fund and cash earning interest at the overnight Interbank Offer Rate (Cash). The Volatility Control Strategy allocates the Strategy Value between the China A Shares Fund and Cash depending on the volatility of the China A Shares Fund. By adjusting the allocation between the Fund and Cash, the Volatility Control Strategy aims to achieve a more stable return than the return from directly investing in the China A Shares Fund only.
The HSBC 100+ Series China Investment return is caculated by measuring the gain of the Strategy Value from its starting index level to a quarterly average over the final two years. The averaging over the final two years reduces the exposure to adverse market movements on the last day of the Investment.
How the Investment fits into an Investment portfolio?
HSBC 100+ Series china may suit investors who:
- What exposure to the Chinese equity market and potential equity market rises but would like to limit their downside.
- Are in the pre-retirement accumulation phase and appreciate the certainty of 100% capital protection at maturity.
- Are looking for an investment in a strongly rated global bank that has weathered the recent market turbulence well.
- Are comfortable investing for a period of five years.
HSBC 100+ Series China Investment is issued by HSBC Bank Australia Limited, a member of the HSBC Group which is one of the largest banking and financial organisations in the world.
| Fee Disclosure | | 2020 DIRECTINVEST will rebate 2.0% of the 2.73% upfront commission in the form of a cheque. 2020 DIRECTINVEST will retain 0.73% to cover postage & handling, marketing and administration of the fund. No trailing commission is paid on this Fund. |
^ Capital protection does not apply where there is an Early Termination or Early Withdrawal. Please refer to PDS for full details.
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