Shanghai Commercial Bank

What is "Equity Linked Deposit"?

Equity Linked Deposit is an investment which combines a traditional time deposit with a stock option. In addition to traditional deposit interest, it pays an extra interest derived from the option, offering you a chance to enhance the potential returns by taking advantage of equity market movements.

Benefits Offered by ELD

Rewarding interest return
ELD may allow you to earn potentially higher returns than a traditional time deposit.
Variety of major stocks
We offer you a variety of linked stocks listed on the Stock Exchange of Hong Kong ("HKSE"). You can also choose a pre-agreed fixed conversion price ("Strike Price") on the selected stock to meet your own investment objectives and risk appetite.
Low minimum deposit requirement
It only requires HKD100,000 or the amount of one board lot linked stock (whichever is higher) to set up an ELD.
No explicit fees and charges⁺
No annual fee or service charges is imposed for placing an ELD, as all fees and charges incurred by the Bank, whether for operational, administrative or hedging costs and profit margins (if any), are already inherently contained and included in the calculation of interest rates and other variables.

Major Features

Deposit Tenor: 4 weeks, 6 weeks or 8 weeks
Strike Price: a percentage of the linked stock’s spot reference price, varies from 93% to 100%
Fixing Date: two HKSE business days before the maturity date
Early Repayment: any withdrawal or termination is not permitted prior to maturity

Who should consider investing in ELD?

With experience in securities trading and are sophisticated enough to understand and assess the risk and their own risk-tolerance levels towards the performance of linked stock; and
Want to earn a potentially higher return than the traditional time deposit; and
Believe the stock price is unlikely to fall below the agreed conversion price; and
Willing to hold the linked stock at the agreed conversion price.

Risk Disclosure Statement
Linked deposit is not the same as nor should it be treated as a substitute for normal time deposits. The interest earnings on the Deposit will depend on the market conditions upon fixing. The customer must be prepared to take risk, as the Deposit and its earnings may be converted into the Linked Stock at the Strike Price on the Maturity Date. When its fixing price falls below the Strike Price on the Fixing Date, the customer will bear the potential losses due to the fall in value of the underlying stock. Such losses may reduce the interest earnings and the principal amount of the Deposit substantially. You may lose the entire deposit if the underlying stock becomes worthless such as in the case of a liquidation or dissolution. Also, the amount of gain is limited to the pre-determined interest rate no matter how high the price of the underlying stock has increased when compared to the pre-agreed Strike Price.

This page is for information purposes only and does not constitute any offer or solicitation or a personal recommendation or advice regarding the ELD and should not be relied upon in that regard. No indication, representation, guarantee or other assurance as to the outcome of any investment has been made or will be given to you by or on behalf of Shanghai Commercial Bank (“the Bank”). Opinions expressed above do not necessarily represent those of the Bank and are subject to change without notice. The examples used in this page are for illustration purpose only and are not based on past record. Neither the Bank nor its authorized officers, employees or agents accepts any liability whatsoever for any loss arising from the use of and/or reliance upon this page or its contents. This page or any part hereof should not be reproduced, distributed or published by any recipient for any purpose without the Bank’s prior written approval.