In a market that is continuously evolving and changing, as the leading issuer in the market, we are proud to present a new product, Inline Warrants, to help you prepare for your next move.
Inline warrants allow investors to generate returns during range-bound market. Inline Warrants holders receive a pre-determined amount that depends on whether an underlying asset falls at or within or outside the upper and lower strikes at expiry.
Inline warrants can be issued over a range of assets, including stocks and stock indices. It can be issued over a range of eligible underlying assets prescribed by the Exchange from time to time, for tenors of six months to five years.
All other factors held constant, inline warrants increase in value when it appears more likely that the underlying price will be at or within the upper and lower strikes (in-the-range) at maturity, and decrease should the underlying price falls above or below the strikes (out-of-the-range).
Investors gain no rights in or to the underlying assets and all inline warrants are settled in cash when exercised on expiry. When the settlement price* of inline warrants is in-the-range at expiry, the amount payable per inline warrant is HK$1. When the settlement price of inline warrants is out-of-the-range at expiry, the amount payable per inline warrant is HK$0.25.This pre-determines maximum loss and payout.
| No. of day | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Date | 22/6
Thu |
23/6
Fri |
26/6
Mon |
27/6
Tue |
28/6
Wed |
29/6
Thu |
30/6
Fri |
3/7
Mon |
4/7
Tue |
|
| Inline Warrant | Stock Inline Warrants | V (Stock 5 day average closing price) | L V (Stock 5 day average closing price) | V (Stock 5 day average closing price) | V (Stock 5 day average closing price) | V (Stock 5 day average closing price) | E | P | ||
| Index Inline Warrants | L | E,V | P | |||||||
L=Last trading DateE=Expiry V=Valuation Date P=Payment Date
Inline warrants issued on local stock: settlement price at expiry is calculated based on 5-day average closing price of the underlying stock prior to and excluding the expiry day.
Inline warrants issued on local index: settlement price at expiry is calculated based on the final settlement price of the corresponding index futures contract of the same expiry month as the inline warrants traded on the Hong Kong Futures Exchange.
For more information about the settlement price at expiry for inline warrants, please refer to the relevant listing documents.
| Index | HSI |
|---|---|
| 0700 | TENCENT |
| 2318 | PING AN |
| 0939 | CCB |
| 1299 | AIA |
| 0941 | CHINA MOBILE |
| 0388 | HKEX |
DB Power Online Limited, “HKEX Information Services Limited, its holding companies and/or any subsidiaries of such holding companies”, China Investment Information Services Limited, third party information providers endeavor to ensure the accuracy and reliability of the information provided but do not guarantee its accuracy or reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracies or omissions.
Structured products are complex products. Investors should exercise caution in relation to them. The price of the structured products may fall in value as rapidly as it may rise and investors may sustain a total or substantial loss of their investment. Prospective investors should ensure that they understand the nature and risks and seek professional advice where applicable. Please also note that CBBCs have a mandatory call feature and may therefore be subject to early termination, upon which (i) investors in category N CBBCs will lose all of their investments in the CBBCs; and (ii) the residual value of category R CBBCs may be zero. Inline warrants have been newly introduced to the market and there are no similar products currently listed on the Stock Exchange of Hong Kong Limited for comparison. Inline warrants carry exotic features, and their terms and pricing may be more complicated than standard derivative warrants. Maximum potential payoff is fixed and capped. Price movement of the inline warrants may be disproportionate or opposite to the price movement of the underlying asset. Click here for "Terms of Use".
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