Structured Products
Tailored for investors to meet different target returns
Emperor Capital Group, according to market mainstream demand, offers a range of non-listed structured products for professional investors to choose from, including but not limited to Sharkfin Notes, Principal Protected Autocallable Note with Enhanced Front End Coupon, and Fixed Coupon Notes to meet the specific needs of professional investors. The product structure can be appropriately set according to the investor's market views and preferences, obtaining substantial returns through market trends and volatility under a controllable investment risk portfolio.
What are Structured Products?
Structured products are composite investment instruments that typically combine derivative products and traditional investment tools (like bonds) to offer a specific risk/return structure. The market value or performance of structured products is linked to their underlying assets (including market indices, single or basket of stocks, bonds, commodities, currencies, interest rates, or a combination of these assets), products, or indices.
Advantages of Structured Products
| Customization | The issuer can customize the product according to investor needs (including investment term, cushion level, bullish or bearish view, etc.) to meet individual financial situations and needs. |
|---|---|
| Yield Enhancement | Potential returns can be increased if the market view is correct through structured products. |
| Buying bullish products and getting downside protection | Some structured notes offer a strike price significantly lower than the market price; for example, the strike price is 85% or70%, thereby providing cushion protection for investors. Even if the performance of the relevant asset falls below the initial spot price but is higher than the strike price, the investor can still get back the principal plus the "coupon" on the contract. |
Risks
| Liquidity | Issuer credit risk | Not protected by the investor compensation fund | No collateral |
Structured Products Introduction
Emperor Capital offers the following key structured products. Investors can choose according to their personal market views and preferences and consult our product sales team for certain or other kind of structured products.
Fixed Coupon Notes
What are Fixed Coupon Notes? Fixed Coupon Notes are a type of structured product that pays a fixed coupon to investors under a pre-defined schedule until an early redemption event occurs or upon maturity. Fixed Coupon Notes are usually linked to the performance of a single stock, a basket of stocks or stock indices, etc. Fixed Coupon Notes are suitable for investors who expected the linked underlying to move within a range.
Principal Protected Autocallable Note With Enhanced Front End Coupon
Principal Protected Autocallable Note With Enhanced Front End Coupon is a type of principal protected structured product that offers enhanced coupons to investors if a knockout event occurs on a specific observation date. Principal Protected Autocallable Note With Enhanced Front End Coupon can be bearish or bullish and are usually linked to a stock index.
Sharkfin Notes (Bullish/Bearish)
Sharkfin Notes are a type of protected structured product, usually linked to the performance of a single stock, a basket of stocks, stock indices, etc. It provides investors with profits on the upward/downward movement of the target when the target fluctuates within a certain range. If the target exceeds that range, Sharkfin Notes will be knockout, and investors will be paid for a knockout coupon at expiry.
| Fixed Coupon Note | Principal Protected Autocallable Note with Enhanced Front End Coupon | Shark Fin Note | |
|---|---|---|---|
| Investor Identity | Professional Investor (PI) | Professional Investor (PI) | Professional Investor (PI) |
| Minimum Threshold | US$300,000 or equivalent | US$300,000 or equivalent | US$300,000 or equivalent |
| Profits | Fixed coupon can be received as per pre-defined schedule during the observation period if no knockout event occurs | Knockout Coupons can be received at expiry if a knockout event occurs during the observation period | Participate on underlying performance, and receive a knockout coupon at expiry instead if a knockout event occurs |
| Principal Protected | No | Yes | Yes |
| Suitable Market Expectation | Range | One-way or Side way market with high volatility | One-way or Side way market with high volatility |
| Investment Term | Main stream is 3-6 months though could stretch to 12 months | Usually 6-12 months | Usually 12 months or above |
| Underlying Assets | Stocks/Stock Indices | Stock Indices | FX/Stock Indices/stocks |
| Expiry Settlement | Stock: Physical Index: Cash | Cash | Cash |
Disclaimer and risk disclosure
The information shown in this website is neither a recommendation, an offer, nor a solicitation for any investment product or service. Investment involves risk. You should carefully consider whether any investment product or service mentioned herein is appropriate for you in view of your personal circumstances. Past performance is no guide to future performance. Investors should refer to the individual product explanatory memorandum or offering document for further details and risks involved. The price of investment products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling investment products.
Structured products involve derivatives. The investment decision is yours but you should not invest in structured products 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.
Structured products are NOT equivalent to time deposits. They are not protected deposits and are not protected by the Deposit Protection Scheme in Hong Kong.
Issuer's risk – You will be relying on the issuer's creditworthiness. The products are subject to both the actual and perceived measures of the credit worthiness of the issuer and there is no assurance of protection against a default by the issuer in respect of their payment obligations.
In the worst-case scenario (eg insolvency of issuer), you may get nothing back and the potential maximum loss could be 100% of investment amount with no coupon received.
The information contained in this website have not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.
Investment involves risk. The price of structured products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling structured products.
You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial resources and circumstances.
Making available to you any advertisements, marketing or promotional materials, market information or other information relating to a product or service shall not, by itself, constitute solicitation of the sale or recommendation of any product or service. If you wish to receive solicitation or recommendation.
