Inline Warrants

Let HSBC Inline Warrants take you to your vision
Read between the lines in a range-bound market

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.

*Settlement price calculation of inline warrants is the same as the Warrant.

Inline Warrant Underlying List

(As of May 2020)
Index HSI
2318 PING AN
0939 CCB
1299 AIA
0388 HKEX


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Important Risk Warning

The structured products are not collateralized. If the issuer is insolvent or defaults, investors may not recover part or all of the amount due.

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. Trading structured products with United States (US) underlying index may be exposed to additional risks, including (a) risks relating to difference in trading days and hours, (b) less public information about the index and such information may not be available in Chinese, (c) political and economic risks relating to the index regions (such as the US), (d) exchange rate risks, (e) possible delay in settlement, and (f) publication of index level when component shares are not trading. Click here for "Terms of Use".


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