Unlisted structured products
2022-05-18

Advantages of structured products

The issuer can customize products in accordance with customer demand to meet the expected return and risk tolerance of each customer.


Structured notes can possibly have a fixed income higher than that of bonds. Under special circumstances, the income can even be higher than the leveraged income of equities.


Hedge against risks arising from a decrease in equities prices: The exercise prices of some structured notes are lower than the market prices. For instance, an exercise price can be 80% of the market price. Even though relevant equities prices become lower than the initial spot prices but are still higher than the exercise prices, customers can still get the principal and the agreed coupon.


Diverse and reduce the fluctuations of portfolios: From notes, investors can get not only the principal and the coupon, but also a return based on the performance of underlying assets. If relevant assets are a basket of equities, investors will obtain a return based on the equity whose performance is the worst.