The Notes will pay, if held to maturity: i) 100 per cent of the principal amount invested; and ii) a variable return, if any, linked to the increase, if any, in the value of a notional index basket comprised of four (4) equally weighted Asian indices. The change in value of each index will be measured from its closing level on 25 March 2008 to the arithmetic average of the closing levels of each index on specified preset quarterly observation dates (25th of June, September, December, and March). The performance of each index (positive or negative) will then be weighted equally to determine the index basket return and the variable return, if any.
||28 March 2008
||28 March 2013
|Selling Agent Fees:
||4 % paid upfront
- Eligible for registered accounts
- Principal protected at maturity
- Linked to four (4) equally weighted Asian indices
- Return based on quarterly averaging
Notional index basket
||Index component weight
|KOSPI 200 Index®
|MSCI Taiwan IndexSM
|Hang Seng Index®
|MSCI Singapore IndexSM
Are the Notes right for you?
The Notes may be an appropriate investment for you, if, among other things: (1) you are looking for safety of principal if held to maturity; (2) want exposure to an investment that is linked to the performance of Asian equities while tracking the performance of generally recognised Asian market indices; (3) want to diversify your exposure to more than one Asian equity index; and (4) are investing for the longer term and believe that Asian equity markets will appreciate.
The Notes do not provide investors with a return or income stream prior to maturity. The effective yield to maturity of the Notes may be less than that which would be payable on a conventional fixed-rate or floating-rate debt instrument. The Notes are generally more suitable for purchasing and holding up to maturity. Potential investors should consult with their own investment, legal and tax advisors to determine the suitability.
Early trading charges/Secondary market
HSBC Securities (Canada) Inc intends, in normal market conditions, but is under no obligation, to use reasonable efforts to provide a secondary price for the Notes as principal, but reserves the right not to do so in the future in its sole discretion, without providing prior notice to the Noteholders. Sale of Notes prior to maturity may subject to an early trading charge as follows:
||Early trading charge
|Issue date to and including 27 June 2008
|28 June 2008 to and including 27 September 2008
|28 September 2008 to and including 27 December 2008
|28 December 2008 to and including 27 March 2009
|28 March 2009 to and including 27 June 2009
|28 June 2009 to and including 27 September 2009
|28 September 2009 to and including 27 December 2009
|28 December 2009 to and including 27 March 2010
|28 March 2010 to and including the maturity date
Please see the information statement for further details or contact your investment advisor.
Noteholders should carefully review and consider all risks set forth in the information statement with their investment adviser, including:
- Asian equity market exposure
- The volatility or degree to which the level of each underlying index changes
- Notes will not constitute insured deposits under Canada Deposit Insurance Corporation Act (Canada)
- The principal amount is protected only if Notes are held to maturity and there is no assurance the Notes will pay any variable return
- No guaranteed secondary market
- Price or other movements in the instruments comprising the indices are unpredictable
- The historical or pro forma performance of each index is not an indication of future performance
- Special circumstances – HSBC may redeem the Notes prior to maturity under certain limited circumstances, including a change in the law, regulation, taxation regulations or taxation practice or other circumstances not within the control of the Bank
- Conflicts of interest with the calculation agent
Right of rescission – A subscriber may only rescind any order to buy a Note (or its purchase if issued) by notice in writing to HSBC within 48 hours of the earlier of actual receipt and deemed receipt of the information statement. Such notice should be directed to: Senior Vice President, HSBC Derivative Products Group, 70 York Street, 8th Floor, Toronto, ON M5J 1S9. This rescission right does not extend to Noteholders buying a Note in any secondary market.
Amendments to Notes – The global deposit note filed on CDS representing the Notes may be amended without the consent of the holders by the Bank if, in the reasonable opinion of the Bank, the amendment would not materially and adversely affect the interests of the holders. In other cases, the global deposit note may be amended if the amendment is approved by a resolution passed by the favourable votes of the holders of not less than 662/3 per cent of the Notes.
Please see the information statement for further details.
Please do not hesitate to call us at +1 866 511 4722 or send us an e-mail for more information.
Important: Please read the disclaimer carefully.