Christopher Chau, director of equity risk management products at UBS Warburg in Hong Kong, said the strong interest shown in the note spurred UBS towards gaining a listing.
"The low interest rate environment in Hong Kong has led investors to look for alternative sources of return," said Chau, adding that the main attraction of the note is that it allows private investors access to this type of product without having to go through an intermediary. In the past, such notes were only available in high denominations of around $400,000 or more.
The Hong Kong note is closely modelled on UBS's Singapore equity-linked note that was listed on the Singapore Stock Exchange in early 2001. UBS believes that the securitised product business in Asia is poised for rapid growth in the coming years due to several factors including the high savings rate environment and increased investor sophistication.