15 February 2024: Wealth Product Ideas
Bullish on Chinese Equities with a Safety Net
- Bullish Outlook and Potential: Despite existing challenges, there is an optimistic view on Chinese equities due to factors such as the PBOC cutting Reserve Ratio Requirements and the potential for further monetary policy easing. These actions can potentially lead to increased liquidity and stimulate economic growth in China.
- Risks and Challenges: It’s important to acknowledge that risks and challenges persist in the Chinese equities market, with one notable concern being the ongoing issues in the property market. Geopolitical tensions, regulatory changes, and global economic uncertainties also contribute to the volatility and potential impact on Chinese equities.
- Safety Buffer with Bullish Sharkfin: To address these potential risks and provide a safety net, a structured product strategy known as the “bullish sharkfin” can be considered, allowing investors to set a minimum redemption level. This means that even in the face of market fluctuations, investors can secure returns at or above the predetermined minimum redemption level, providing a safety buffer.
Bullish Sharkfin Quotes
Note: Pricing provided is indicative only. For updated pricing, please contact us directly. Investing in complex structured products carries inherent risks. Ensure you fully understand the terms, conditions, and potential risks before making any investment decisions.
Payout Scenarios (At Maturity):
Scenario 1:
- If the index performs negatively and closes below the initial level but does not breach the knock-out barrier, the notes redeem at 100% (the min redemption amount).
Scenario 2:
- If the index performs positively and closes above the initial level but does not breach the knock-out barrier, the notes redeem at 100% plus full participation in the positive index performance.
Scenario 3:
- If the index performs positively but breaches the knock-out barrier on any of the daily observation dates during the lifetime of the notes, the notes will redeem at maturity at 100% plus the rebate percentage.
(Source: Bloomberg)
(Source: Bloomberg)
