Hong Kong: HSBC Issues Five New CBBCs to Invest in Local Companies

HSBC has introduced five new Callable Bull/Bear Contracts (CBBCs) in collaboration with local companies, aiming to provide investors with an opportunity to invest in the Hong Kong stock market. The five series of CBBCs, backed by BYD Company Limited, Meituan, Xinyi Solar Holdings Limited, Ping An HealthCare and Technology Company Limited, and ANTA Sports Products Limited, offer a range of investment options to cater to diverse risk appetites.

Key Takeaways:

• Five new CBBCs series have been issued by HSBC, with a total issue size of 80,000,000 to 100,000,000 CBBCs.
• The five series are categorized into bull and bear contracts, with varying strike prices and entitlements per board lot.
• BYD Company Limited, Meituan, Xinyi Solar Holdings Limited, Ping An HealthCare and Technology Company Limited, and ANTA Sports Products Limited have backing the CBBCs.
• The CBBCs offer a gearing effect ranging from 1.41x to 5.35x, depending on the series, and premium rates ranging from 0.88% to 47.05%.

Statistics:

• Issue size: 80,000,000 to 100,000,000 CBBCs.
• Issue price per CBBC: HK$0.25.
• Gearing effect: 1.41x to 5.35x.
• Premium rates: 0.88% to 47.05%.
• Valuation date: The Trading Day immediately preceding the Expiry Date.
• Expiry date: 9 December 2021, 30 November 2021, 30 November 2021, and 30 November 2021.
• Settlement currency: Hong Kong dollars.
• Settlement fee: The funding cost will fluctuate throughout the life of the CBBCs.

Sources:

• The Hongkong and Shanghai Banking Corporation Limited. (2021). Announcement: Callable Bull/Bear Contracts. Retrieved from https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0202/2021020201564.pdf