“Equity-Linked Deposit” is a high yield investment tool that is linked with a Hong Kong listed ordinary share.  “Equity-Linked Deposit” can be linked with over 30 ordinary shares.  You can earn interest if the linked instrument is steady.  On the other hand, you can also buy the linked share at the strike price.  You can choose different linked shares, strike price and period to suit your forecast on the share market.

Operation Methods

1. Firstly choose an investment product that is linked with a Hong Kong listed ordinary share.
2. Calculate your interest earned according to the interest start date, determine date, maturity date, strike price (usually lower than the share price), issue date, etc.
3. On determine date, one of the following situations will happen:

If the closing price of the share is higher than the strike price, customers can get back the deposit amount at maturity date (investment amount + interest);
If the closing price of the share is lower than the strike price, customers can get back the deposit amount at maturity date, on condition that the strike price equals the cash value of shares (no. of shares = face value of shares ÷strike price).

Advantages of “Equity-Linked Deposit”:

1. Investors can earn high yield interest income as long as marked price of the relative share is equivalent to or higher than the strike price.  (But there is a maximum limit in the return of ELI, so if the performance of the share is relatively positive, the return of ELI will then be lower than investing directly on the share). 
2. When the performance of the relative share is narrow, investors still have the chance to earn a return that is higher than fixed deposit.
3. ELD allows investors a choice of ordinary shares and periods.