If one or more of the entities whose stock is included in, or owned by, the relevant Reference Asset, as the case may be, were so treated, certain adverse U. Although the actual value of the Reference Asset on the stated Maturity Date or at other times during the term of the securities may be higher than the Final Value, the Payment at Maturity will be based solely on the Official Closing Value of the Reference Asset on the Final Valuation Date. In that case, the scheduled trading day immediately preceding the date of acceleration will be used as the Final Valuation Date for purposes of determining the Reference Return, and the accelerated maturity date will be three business days after the accelerated Final Valuation Date. Supplemental Plan of Distribution Conflicts of Interest. The amount we pay in respect of your securities on the maturity date, if any, will be determined solely in accordance with the procedures described in this free writing prospectus.
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However, this withholding tax will not be imposed on payments pursuant to obligations outstanding on January 1, Historical Performance of the RTY. We or one of our affiliates will act as calculation agent with respect to the securities. Potential conflicts of interest may exist. You are not willing or are unable to assume the credit risk associated with HSBC, as Issuer of the securities. As a result of the difference between our implied borrowing rate and the rate we would use when we issue conventional fixed or floating rate debt securities, the Estimated Initial Value of the securities may be lower if it were based on the levels at which our fixed or floating rate debt securities trade in the secondary market.
Your investment in the securities may result in a loss.
The Estimated Initial Value will reflect the implied borrowing rate we use to issue market-linked securities, as well as the mid-market value of the embedded derivatives in the securities. The securities lack liquidity.
This free writing prospectus relates to three offerings of Buffered Accelerated Market Participation Securities. Before you invest, you should read the prospectus, prospectus supplement and relevant underlying supplement in that registration statement and other documents HSBC has filed with the SEC for more complete information about HSBC and these offerings.
The RTY is designed to track the performance of the small capitalization segment of the United States equity market. An affiliate of HSBC has paid or may pay in the future an amount to broker-dealers in connection with the costs of the continuing implementation of systems to support the securities.
You seek an investment with an enhanced return linked to the potential positive performance of the relevant Reference Asset and you believe the value of such Reference Asset will increase over the term of the securities. The appreciation on the securities is limited by the relevant Maximum Cap.
The accelerated maturity date will also be postponed by an equal number of business days. You should not take this illustration or these examples as an indication or assurance of the expected performance of the relevant Reference Asset to which your securities are linked or the return on your securities. The Korea Stock Price Index The market value of the securities at any time will reflect many factors and cannot be predicted with accuracy.
This temporary price difference may exist because, in our discretion, we may elect to effectively reimburse to investors a portion of the estimated cost of hedging our obligations under the securities and other costs in connection with the securities that we will no longer expect to incur over the term of the securities.
Plan of Distribution Conflicts of Interest.
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The values of the EFA depends upon the stocks of non-U. You will be subject to significant risks not associated with conventional fixed-rate or floating-rate debt securities.
You prefer the lower risk, and therefore accept the potentially lower returns, of conventional debt securities with comparable maturities issued by HSBC or another issuer with a similar credit rating.
You seek an investment for which there will be an active secondary market. It is possible, for example, that the amount of the Excess Gain if any that would be recharacterized as ordinary income in respect of each security linked to the EFA will equal the excess of i any long-term capital gain recognized by the U.
Description of Preferred Stock. You are unwilling to invest in the securities based on the Maximum Cap indicated herein with respect to vechor security offering, which may limit your return at maturity.
The following table and examples are provided for illustrative purposes only and are hypothetical. Investment in the securities involves certain risks. The Trade Date, the Pricing Date and the other dates set forth above are subject to change, and will be set forth in the final pricing supplement relating to the securities.
Risks Relating vectkr Our Business. The following graph sets forth the historical performance of the RTY based on the daily historical closing levels vecor June 25, through June 25, The SPX is a capitalization-weighted index of U. Each of the three securities will have the respective terms described in this free writing prospectus and the accompanying prospectus supplement, prospectus and relevant underlying supplement.
Description of the EFA. The Final Value will be based on the Official Closing Value of the Reference Asset on the Final Valuation Date, subject to postponement for non-trading days and certain market disruption events.