Equity Linked Investments

What are Equity Linked Investments?

Equity Linked Investments (ELIs) are structured investment products that offer potential returns based on the performance of the underlying stock(s). DBS' ELIs cover Hong Kong and US stocks. You may choose ELIs that are linked to a single stock or a basket of stocks, and denominated in one of the major currencies. Some ELIs offer capital protection at maturity, so that you are guaranteed to receive 90% to 100% of the principal amount at maturity. You may even enjoy potential capped upside returns depending on the performance of the underlying stock(s).

Key features :

Wide coverage of stocks and ETFs in Hong Kong and US markets
You may choose ELI linked to a single stock/ETF or a basket of specific stocks/ETFs

90% to 100% capital protection at maturity (applicable to some ELIs)
Some ELIs have a minimum redemption feature, with levels ranging from 90% to 100%

Flexible investment period from 2 to 11 months, with some ELIs having a callable feature
Callable feature: The Issuer will early terminate the ELI if callable condition is satisfied and you will get back the principal amount and potential return before maturity

Knock-in feature (applicable to some ELIs)
The knock-in price is usually lower than the strike price of the linked stock(s). If the knock-in event has not occurred, you can receive the principal amount and potential return at maturity so as to soften negative market impacts.

Denominated in major currencies including HKD, RMB, USD, AUD, EUR
Invest in ELIs with HKD, RMB, USD, AUD, EUR, GBP, NZD, CAD, SGD or JPY

Investment amount from HK$100,000 (or equivalent)
Some ELI investment starts from only HK$100,000 (or equivalent), so that you can diversify your investment portfolio with ease.

Example

Initial Spot Price HK$100
Upper Call Strike Price HK$120
Lower Call Strike Price HK$100
Put Strike Price HK$90
Principal Amount HK$1,000,000
Minimum Redemption Level 96%
Minimum Return Rate 0%
Participation Ratio 150%
Tenor 9 months

Return under different scenarios

 

Scenario (1): Earn a higher return at maturity
If the final closing price reaches HK$123 at maturity (higher than the Upper Call Strike Price HK$120), you will receive:
HK$1,000,000 (Principal) + HK$1,000,000 x (HK$120-HK$100)/HK$100 x 150% (Participation Ratio)
= HK$1,300,000

Scenario (2): Receive the principal at maturity
If the final closing price is HK$99 at maturity (lower than the Lower Call Strike Price HK$100 but higher than the Put Strike Price HK$90), you will receive:
HK$1,000,000 (Principal)

Scenario (3): Receive the minimum redemption at maturity
If the final closing price is HK$80 at maturity, you will receive:
HK$1,000,000 (Principal) x 96% (Minimum Redemption Level)
= HK$960,000

If the Bank becomes insolvent or defaults on its obligations, the customer may lose all of the investment.

The above example is for illustration purpose only and actual performance of the ELI may vary from the example shown. The example should not be relied on as an indication of actual performance of the reference asset or the total payout of the Products. It does not take into account any expense payable by the investor.

Latest Promotion

DBS customers can enjoy fabulous offers by subscribing to selected investment products now.
Please refer to Investment Transaction Offers & Transfer-in Offers for details.
Terms and conditions apply.


Contact your Relationship Manager or visit our branch to understand more.

Frequently Asked Questions

What are the trading hours for subscribing to ELIs at a branch?
You can place orders for ELIs linked to HK stock(s) at our branch from 9:00 am to 3:30 pm on working days. For ELIs linked to US stock(s), orders can be placed from 9:00 am to 5:00 pm on working days (except US public holidays).
Will I be entitled to stock dividends during the ELI investment period if the ELI’s linked stock distributes dividends?
Investing in an ELI is not the same as buying the linked stocks. You will not receive dividends from the linked stock(s) during the ELI investment period.
For basket ELIs, which stock will be used to determine the payoff at maturity?
Payoff at maturity is determined by the worst performing linked stock, which is the stock with the lowest percentage return. If physical settlement applies, the worst performing linked stock will be delivered.
What type of account do I need to subscribe to ELIs?
You will need a Wealth Management Account to subscribe to ELIs. Please click here to find out more about our Wealth Management Account.
Are there any special requirements for investing in ELIs linked to US stock(s)?
You must have submitted a valid W-8BEN Form to us before placing an order for any ELI linked to US stocks.

Risk Disclosures and Important Notice

  1. Equity-Linked Investments (“the Products”) are structured products involving derivatives and are classified as complex products. You are advised to exercise caution prior to investing. The investment decision is yours but you should not invest in the Products unless DBS Bank (Hong Kong) Limited (“the Bank” or “we”) who sells them to you has explained to you that the Products are suitable for you having regard to your financial situation, investment experience and investment objectives.
  2. RMB currently may not be freely convertible and is subject to exchange controls and restrictions. There is no guarantee that RMB will not depreciate. If you convert Hong Kong Dollar or any other currency into RMB so as to invest in a RMB product and subsequently convert the RMB sale proceeds back into Hong Kong Dollar or any other currency, you may suffer a loss if RMB depreciates against Hong Kong Dollar or other currency.
  3. The Products are not principal protected, investors could lose the entire principal amount in the worst case scenario. The Products carry risks not normally associated with ordinary bank deposits, and are NOT equivalent to time deposits. You should not treat the Products as substitutes for ordinary savings or time deposits. The Products are NOT protected deposits and are NOT protected by the Deposit Protection Scheme in Hong Kong.
  4. If a customer is not proficient in English, the customer should consider whether investment in the Products is suitable or not and obtain independent advice, where necessary.
  5. United States Taxation rules are complex and their application may depend on the particular circumstances, including whether customers enter into other transactions with respect to the underlying U.S. stocks. Customers should, prior to the investment in the Products, consult their own tax adviser regarding the application of United States Taxation rules arising from such investment.
  6. Any person considering an investment should seek independent advice on the investment suitability when considered necessary.
  7. Investment involves risks. This website does not constitute any offer or solicitation of offer to subscribe, transact or redeem any investment product. The above information is not and shall not be considered as investment advice. It does not constitute any offer or solicitation of offer to subscribe, transact or redeem any Products. Past performances are not indicative of future performances. You should carefully read the product offering documentation, the account terms and conditions, and the product terms and conditions for detailed product information and risk warnings prior to making any investment. If you have any doubt on this material or any offering documentation, you should seek independent professional advice.
  8. The Securities and Futures Commission of Hong Kong (the “SFC”) has authorised the Products and the relevant offering documents of the Products. The SFC's authorisation does not imply official recommendation or endorsement of the Products, nor does it guarantee the commercial merits of the Products or their performance.
  9. Information contained in this website has not been reviewed by the SFC or any regulatory authority in Hong Kong.
  10. This website is provided by DBS Bank (Hong Kong) Limited. The Bank is regulated and authorised to carry out Type 1 and Type 4 regulated activities in Hong Kong. The Products represented within this website are intended for Hong Kong investors.
  11. This website is not intended for distribution or use by any person in any country or region where the distribution or use of this material is restricted and would not be permitted by law or regulation. If you are outside of Hong Kong, we may not be authorised to offer or provide you with the Products and services available through this website in the country or region you are located or resident in.
  12. Foreign exchange involves risks. Investors should note that foreign exchange may incur loss due to the fluctuation of exchange rate.

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