HSBC Callable Asian TIGERS Opportunity Deposit Notes, Series 1

Matured price*: 100.00 %
Maturity date: 20 June 2011

HSBC Callable Asian TIGERS Opportunity Deposit Notes, Series 1 are principal-protected notes linked to the economic performance of a notional index basket composed of three Asian indices. The Notes may be called at HSBC's discretion on call dates at the end of year one (22 June 2009) at a fixed call premium of five per cent of principal amount and at the end of year two (22 June 2010) at a fixed call premium of 10 per cent of principal amount. If the Notes are called, a Noteholder will receive the applicable call premium and their principal amount.

If the Notes have not been called by HSBC on either call date, a Noteholder will be paid at 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 three equally weighted Asian indices. The performance of each Index will be measured from its initial index level to the final index level of such Index. The performance of the Indices (positive or negative) will then be equally weighted and multiplied by a participation rate of 60 per cent to determine the variable return, if any.

Key features

Issue date: 20 June 2008
Maturity date: 20 June 2011
Note term: 3 years
CUSIP #: 40427HPP2
FundSERV code: 402/403
Currency: USD
Participation: 60%
Selling agent fees: 2.50% paid upfront

Highlights

  • Eligible for registered accounts
  • Principal protected at maturity
  • Linked to three equally weighted Asian indices
  • Potential to be called at pre-determined call premiums

Underlying asset(s)

Notional index basket
Index Ticker Index component weight
MSCI Taiwan IndexSM TWY 1/3
Hang Seng Index® HSI 1/3
MSCI Singapore IndexSM SGY 1/3

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) you believe that Asian equity markets will appreciate.

The term of the Notes is uncertain in that HSBC may call all of the Notes on either call date. If the Notes are not called by HSBC, the principal amount of a Note will be repaid only if the Note is held to maturity. In addition, if the Notes are not called by HSBC on either call date then the return, if any, will be uncertain until maturity and will depend on the performance of the Index Basket. It is possible that the Notes could produce no yield at maturity. As a result, the Notes are not suitable for investors requiring or expecting certainty of yield or term.

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 through FundSERV, 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 be subject to an early trading Charge as follows:

Time period Early trading charge
Issue date to and including 19 June 2009 2.5%
20 June 2009 to and including 19 June 2010 2.0%
20 June 2010 to and including maturity date 0%

Please see the information statement for further details or contact your investment adviser.

Risk factors

Noteholders should carefully review and consider all risks set forth in the information statement with their investment adviser, including:

  • Asian equity market exposure
  • The return on the Notes, if called, may be less if HSBC had not called the Notes and the Notes remained outstanding until maturity
  • The decision to call or not to call the Notes will be made solely by HSBC and may not be advantageous to Noteholders
  • If the Notes have not been called by HSBC on either call date, Noteholders only participate in 60 per cent of the upside performance of the Index Basket
  • 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
  • An extraordinary event
  • Conflicts of interest with the calculation agent

Additional information

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 66.66 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.

*The price is before the application of an early trade charge that may apply. The secondary market price for a Note, if available, represents the bid price of such Note as a percentage (%) of the original principal amount invested. The bid price stated is only as of the date indicated.

Important: Please read the disclaimer carefully.