HSBC Global Financials Deposit Notes, Series 1

Matured price*: 99.13 %
Maturity date: 25 November 2014

The Notes will pay, if held to maturity:

  • 100% of the Principal Amount invested; and a Variable Return, if any, depending upon the price performance of a notional portfolio of ten (10) equally-weighted Reference Shares set out below under the heading "The Portfolio". The performance of each Reference Share will be measured from its closing price on the Pricing Date to its closing price on the Valuation Date to determine the Reference Share Return, which will be subject to a maximum Cap of 45%. The average of all 10 Reference Share Returns will then be multiplied by the Principal Amount to determine the Variable Return, if any
  • If the Variable Return is zero or less than zero, then the Notes will not pay a Variable Return

Key features

Issue date: 25 November 2009
Maturity date: 25 November 2014
Note term: 5 years
CUSIP #: CA40427HRM74
Currency: CAD
Participation: 100%
Cap: 45%
Selling agent fees: $3.50 per Note (3.50% of the Principal Amount)


  • Principal protected at maturity
  • Eligible for registered accounts

Underlying asset(s)

Reference Share Ticker Exchange
Bank of Nova Scotia BNS TSX
China Construction Bank-H 939 HKEX
Banco Santander SA SAN SIBE
Royal Bank of Canada RY TSX
Goldman Sachs Group, Inc. GS NYSE
Toronto Dominion Bank TD TSX
Standard Chartered Plc STAN LSE
Bank of America Corporation BAC NYSE
HSBC Holdings Plc - HK 5 HKEX
Bank of China Ltd - H 3988 HKEX

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 an investment that is linked to the performance of the Companies in the financial sector; and (4) are investing for the longer term and believe that the Reference Shares will appreciate.

There is no assurance that a Variable Return will be payable at maturity and the Variable Return will be limited to a maximum of 45% of your original Principal Amount invested.

Potential Noteholders should consult with their own investment, legal and tax advisers to determine the suitability of an investment in the Notes and the appropriate amount, if any, of an investment of this nature. HSBC makes no recommendation as to the suitability of the Notes for investment.

Early trading charge/Secondary market

HSBC Securities (Canada) Inc. intends, in normal market conditions, 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 be subject to an Early Trading Charge as follows:

Time period Early trading charge
Issue Date to and including May 24, 2010 3.5%
May 25, 2010 to and including November 24, 2010 2.0%
November 25, 2010 to and including May 24, 2011 1.0%
May 25, 2011 to and including the Maturity Date 0.0%

During the term of the Notes, you may inquire as to the net asset value of a Note or the level of the underlying Currencies and how they relate to the Variable Return that may be payable under the Notes, if any, by contacting HSBC at the number below.

Please see the Information Statement for further details or contact your investment adviser.

Risk factors

The Notes subject the Noteholders to significant risks, including the potential for lost investment opportunities. Potential Noteholders should carefully review and consider all risks set forth in this Information Statement (see "Risk Factors"), including:

  • The Notes will not constitute insured deposits
  • Noteholders may not receive a Variable Return
  • A Noteholder will not receive more than the maximum Variable Return of $45.00 per Note at maturity as a result of the Cap
  • The Principal Amount is payable only if Notes are held to maturity
  • There is no guaranteed secondary market for the Notes and if such a market develops, there can be no assurance that it will be liquid
  • Price or other movements in the Reference Shares are unpredictable
  • The historical or pro forma performance of each Reference Share is not an indication of future performance, and
  • Adjustments as a result of certain Special Circumstances

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 two days 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 (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.