6 April 2023: Wealth Product Ideas
Chinese Technology Companies Investment Theme
- Due to economic strength and policy support, Chinese stock market shares are expected to perform well.
- China recently lowered its reserve requirement ratio, aiming to support economic recovery and increase liquidity, which should attract more investors to enter the market.
- The optimistic attitude of Chinese insurance companies towards increasing equity investments for higher returns may further boost the market.
- Citigroup analysts suggest that China is likely to become a “relatively safe haven” due to its fiscal stability, growth potential, policy discipline, and new political and economic cycles.
- Thanks to strong government support and asset quality, Chinese banks have shown resilience amid global banking industry turbulence.
- Chinese tech companies have recently rebounded as there are signs that Beijing is taking a more lenient stance towards internet giants.
Payout Scenarios:
- KO Early Redemption: Principal + KO returns (KO event occurs only when the closing price of all underlying securities is higher than the knock-out price)
- Maturity Redemption: Investors receive corresponding interest payments every month, and if no KO event occurs, the payout will be:
- If the final price is higher than or equal to the strike price, investors will receive 100% cash return on their principal, along with the final interest.
- If the final price is lower than the strike price, investors will receive 100% of their principal in the form of shares of the worst-performing stock and will also receive the final interest.
(Source: Bloomberg)
