Take the quotes of Tencent (700 HK) and Xiaomi (1810 HK) for example:

• Dividends are paid monthly regardless of the trend of equity prices.
• Returns are locked in advance. Investors are provided with a stable and considerable return.
• The exercise price lower than 100% serves as a safety pad for investors. Meanwhile, investors can choose to purchase promising equities at prices lower than the current prices.
• A knockout mechanism can be set. Interest will be calculated till the current day after knockout.
• Generally, the first month is a lock-up period for notes issued. During this period, knockout cannot be conducted so that investors can obtain one-month interest.
• If the note is not redeemed in advance prior to the settlement date,
• If the prices of all linked equities on the valuation date are higher than the exercise price, investors can recover 100% of the principal and obtain interest.
• On the contrary, if the price of the equity with the worst performance on the valuation date is lower than the exercise price, investors need to purchase the equity at the exercise price.