“Flexibond is the first investment product BOCI has launched in the Hong Kong retail market,” said Polly Wong, vice-president of equity derivatives at the bank in Hong Kong. “In the future BOCI will develop more structured investment products to facilitate the market development and satisfy the needs of investors.” These could include more credit-linked products and equity-linked products - in the form of bonds or principal-protected structures - and possibly listed warrants.
“In view of the current ever-changing market environment, the design of this new product is to offer investors another choice of quality investment with lower risk exposure,” added Wong. “Not only does Flexibond help satisfy investor need for safer investments and higher returns, but it also brings in additional opportunities for capital enhancement. When the equity market performs well, investors who choose to switch to HSBC shares may enjoy an investment return of more than 9%.”
The notes are being issued by the bank’s structured investment product platform, boci.