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Introduction

Introduction

These FAQs are intended to give you a better understanding of structured products including standard warrants (“standard warrants”); inline warrants (“inline warrants”) and callable bull or bear contracts (“CBBCs”) listed in Hong Kong. These FAQs include examples and quick facts about some of their key features and risks, as well as some information about how they work in practice.

However, these FAQs are not designed to deal with all the important issues or scenarios that may affect you. They do not provide all the information you need to invest and they do not constitute investment or legal advice. You must read the listing documents for further information about the relevant product and seek independent advice if you have questions. Investing involves responsibility.

Should I invest in structured products?

Structured products are high risk derivative products which are only suitable for experienced investors. You should not invest in these products if:

  • you do not have investment experience in investing in leveraged products
  • the investment does not suit your investment objectives
  • you do not fully understand the risks involved
  • you are not willing to accept price volatility and assume the risks of a possible total loss
  • you do not have sufficient knowledge of the factors that affect their pricing
  • you do not know how to assess the creditworthiness of the issuer or (if applicable) its guarantor

If you are in doubt, you should clarify with the intermediary or seek independent professional advice.

What documents should I read?

You should read the listing documents of the relevant products. The listing documents contain important information, such as trade particulars of the relevant products and information of issuers and liquidity providers that you must read before investing in any structured products. You should also read these FAQs carefully.

Where can I find out more?

The following resources also provide useful information:

  1. The website of the HKEX has special pages for structured products. You can obtain the listing documents for structured products from those designated webpages.
  2. The website of individual issuers. Links to individual issuers’ websites can be found on the website of the HKEX.
  3. The website of the Investor and Financial Education Council has various education materials on structured products.

Who should I contact if I have any questions about my structured products?

If you have any questions or concerns about your product, or about an issuer’s or a liquidity provider’s performance, you can contact the issuer directly or speak to an independent advisor.

The issuer’s contact details are set out in the relevant listing documents and can also be found on the HKEX’s website.

If necessary, you can also contact The Stock Exchange of Hong Kong Limited (“Exchange”) by calling +852 2840 3330 or by sending email to info@hkex.com.hk.

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