HSBC Equity-Linked Range Notes, Series 4

Matured price*: 100%
Maturity date: 24 Dec 2009

HSBC Equity-Linked Range Notes, Series 4 are principal protected deposit notes issued by HSBC. If held to maturity, the Notes will pay:

  • 100 per cent of the principal amount invested; and
  • A contingent coupon, if payable, of eight per cent of the principal amount or USD8.00 per Note, if a 'kick-out event' does not occur during the approximate 10-month observation period. A kick-out event occurs if, on any scheduled trading day during the observation period, the market price of the shares of the iShares MSCI EAFE index fund at any time is greater than the upper barrier level (109.70 per cent of the initial price) or less than the lower barrier level (90.30 per cent of the initial price)

If a kick-out event occurs, the contingent coupon will not be payable and a Noteholder will only receive at maturity their original principal amount invested.

Key features

Issue date: 24 June 2008
Maturity date: 24 December 2009
Note term: 1.5 years
CUSIP #: 40427HPR8
Currency: USD
Contingent coupon:
Selling agent fees: 1.10 per cent

Highlights

  • Eligible for registered accounts
  • Principal protected at maturity
  • Linked to the S&P 500®
  • Potential to receive a contingent coupon of 12 per cent

Underlying asset(s)

S&P 500® Index

Are the Notes right for you?

You may be suited to become a Noteholder if, among other benefits, you:

  1. Are looking for safety of principal if held to maturity;
  2. Want the potential to earn a return that may be greater than what is available from a traditional fixed term deposit but with similar risks to your principal investment;
  3. Want exposure to a short-term investment that is linked to the performance of the index, and;
  4. You believe the volatility in the index will be sufficiently low throughout the observation period where the closing level of the index will not fluctuate in excess of the upper barrier level or less than the lower barrier level.

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 is not subject to an early trading charge. 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:

  • The volatility or degree to which the level of the index changes
  • Notes will not constitute insured deposits under Canada Deposit Insurance Corporation Act (Canada)
  • Noteholders holding to maturity may not receive the contingent coupon
  • The return on the Notes is limited to the amount of the contingent coupon, if payable
  • A kick-out event could occur on any scheduled trading day during the observation period
  • Principal amount is protected only if Notes are held to maturity
  • There is no guaranteed secondary market for the Notes
  • The return on the Notes is not directly linked to appreciation in the index
  • The historical or pro forma performance of the index is not an indication of future performance
  • Special circumstances
  • Conflicts of interest with the calculation agent

Additional information

Right of cancellation – A subscriber may cancel an order to purchase a Note (or cancel the purchase of a Note if the Note has been issued) by providing written instructions to HSBC directly or through his or her investment adviser any time up to 48 hours after the later of (i) the day on which the agreement to purchase the Note is entered into and (ii) deemed receipt of this information statement. Such notice should be directed to: Senior Vice President, HSBC Derivative Products Group, 70 York Street, 8th Floor, Toronto, ON M5J 1S9, Fax +1 416 868 3088. This rescission right does not extend to Noteholders buying a Note in any secondary market.

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.