HSBC Europe and Far East Opportunity Deposit Notes (USD)

Matured Price*: 139.55%
Maturity Date: 29 November 2010

The Notes will pay, if held to maturity: i) 100 per cent of the principal amount invested; and ii) a variable coupon, if any, linked to the change in the value of a portfolio of three equally weighted indices. The increase in value in each index will be measured from its closing level on the index set date (22 November 2005) to the arithmetic average of the closing levels of such an index on specified preset quarterly observation dates (22 February, 22 May, 22 August and 22 November in each year). The average performance of the three indices (positive or negative) will then be weighted equally to determine the variable coupon, if any.

Key features

Issue date: 29 November 2005
Maturity date: 29 November 2010
Note term: 5 years
CUSIP #: 40427HJU8
Currency: USD
Participation: 165%

Highlights

  • Eligible for registered accounts
  • Principal protected at maturity
  • Return based on quarterly averaging

Underlying asset(s)

Notional portfolio
Index Ticker Index component weight
DJ Euro Stoxx 50 Index SX5E 33.33%
FTSE/Xinhua China 25 Index FXTID 33.33%
Nikkei 225 Stock Index NKY 33.33%

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 the three indices; (3) want to diversify your exposure to more than one index; and (4) are investing for the longer term.

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 at 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:

Year 1 2 3 4 5
Charge 3.5% 3% 2% 1% 0%

Risk factors

Noteholders should carefully review and consider all risks with their investment advisor, including:

  • Notes are not insured under the Canada Deposit Insurance Corporation Act
  • The principal amount is protected only if Notes are held to maturity
  • No assurance is given that the Notes will pay any variable coupon
  • No guaranteed secondary market
  • Price or other movements in the instruments comprising the indices are unpredictable
  • Conflicts of interest with the Calculation Agent

Additional information

Amendments to Notes - The global deposit note filed on CDS representing the Notes may from time to time be amended, supplemented or restated by HSBC without the approval of the Noteholders for the following purposes: (i) ensuring or continuing compliance with applicable laws, regulations, rules or requirements of any governmental authority having jurisdiction over HSBC, (ii) changing the dates on which payments are required to be made to conform with customary settlement practices, (iii) making any modification that would not be prejudicial to the interests of Noteholders in the opinion of HSBC; (iv) making changes or corrections which are necessary or desirable for the correction of typographical mistakes, or are required for the purpose of curing any ambiguity, defective or inconsistent provisions, omissions or errors.

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.