Structured products

You should fully understand the features and risks of a structured product before deciding whether to invest.

What are structured products?

In general, a "structured product" is an instrument embedded with derivative, under which the return, the amount due and/or the method of settlement is determined by reference to:

  • changes in the price, value and/or level of one or more reference underlying (e.g. securities, commodity, index); and/or
  • the occurrence or non-occurrence of an event.

The full statutory definition of a "structured product" and relevant exceptions are set out in section 1A of Schedule 1 to the Securities and Futures Ordinance ("SFO").

(a) Listed structured products
The Stock Exchange of Hong Kong (SEHK) is the frontline regulator of listed structured products (e.g. derivative warrants and CBBCs). You may refer to the HKEx website for details. You can also obtain the listing document and announcement made by the issuer of listed structured products via the HKExnews website.

(b) Unlisted structured products
Public offers of unlisted structured products (e.g. ELI) and the issue of offering documents and advertisements in relation to such products must generally be authorized by the Securities and Futures Commission (SFC) under the Securities and Futures Ordinance, unless an exemption applies. For details of the regulatory regime of unlisted structured products, please click here.