HSBC Group. Any member of the HSBC Group may from time to time underwrite,
make a market or otherwise buy and sell, as principal, structured investments, or
together with their directors, officers and employers may have either long or short
positions in the structured investments, or stocks, commodities or currencies to
which the structured investments are linked, or may perform or seek to perform
investment banking services for those linked assets mentioned herein. These
activities may be in conflict with the interests of investors of debt obligations or certificates of deposit issued by members of the HSBC Group.
The Index may be partially uninvested. The strategy tracks the excess return of a
notional dynamic basket of equities and cash over the Secured Overnight Financing
Rate (“SOFR”) accrued daily. The weight of a Cash Investment (if any) for a Monthly
Reference Portfolio at any given time represents the portion of the Monthly
Reference Portfolio that is uninvested in the applicable equity basket at that time. As such, any allocation to a Cash Investment within the Index, which also accrues at SOFR, will not affect the level of the Index. The Index will reflect no return for any uninvested portion (i.e., any portion represented by a Cash Investment). Accordingly, to the extent that the Index is allocated to the Cash Investment, it may not reflect the full increase of any relevant equity component. Under certain circumstances, the Index may be 100% allocated to the Cash Investment.
Important Disclaimer Information
This brochure is for informational purposes only and intended to provide a general
overview of the Index and does not provide the terms of any specific issuance of
structured investments. The material presented does not constitute and should
not be construed as a recommendation to enter into a securities or derivatives
transaction. Prior to any decision to invest in a specific structured investment,
investors should carefully review the disclosure documents for such issuance which
contains a detailed explanation of the terms of the issuance as well as the risks, tax treatment and other relevant information.
Investing in financial instruments linked to the Index is not equivalent to a direct investment in any part of the Index. Investments linked to the Index require investors to assess several characteristics and risk factors that may not be present in other types of transactions. In reaching a determination as to the appropriateness of any
proposed transaction, clients should undertake a thorough independent review of
the legal, regulatory, credit, tax, accounting and economic consequences of such
transaction in relation to their particular circumstances. This brochure contains
market data from various sources other than us and our affiliates, and, accordingly, we make no representation or warranty as to the market data’s accuracy or completeness and we are not obligated to update any market data presented in this website. All information is subject to change without notice. We or our affiliated companies may make a market or deal as principal in the investments mentioned in this website or in options, futures or other derivatives based thereon. This website discusses a number of different HSBC entities and you should fully inform yourself about the specific HSBC issuer prior to making any investment in its debt obligations or certificates of deposit. HSBC Holdings plc, HSBC North America Holdings Inc. and other affiliated entities are not liable for any of the obligations of HSBC USA Inc. or HSBC Bank USA, N.A.
HSBC USA Inc. has filed a registration statement (including a prospectus and
prospectus supplement) with the Securities and Exchange Commission for
any offering to which this free writing prospectus may relate. Before you invest,
you should read the prospectus and prospectus supplement in that registration
statement and other documents HSBC USA Inc. has filed with the SEC for more
complete information about HSBC USA Inc. and any related offering. You may get
these documents for free by visiting EDGAR on the SEC’s web site at www.sec.
gov. Alternatively, HSBC Securities (USA) Inc. or any dealer participating in the
related offering will arrange to send you the prospectus and prospectus supplement
if you request them by calling toll-free 1-866-811-8049.
Solactive AG is the administrator and calculation agent of the Index. The financial
instruments that are based on the Index are not sponsored, endorsed, promoted
or sold by Solactive AG in any way and Solactive AG makes no express or implied
representation, guarantee or assurance with regard to: (a) the advisability in
investing in the financial instruments; (b) the quality, accuracy and/or completeness of the Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Index. Solactive AG does not guarantee the accuracy and/or the completeness of the Index and shall not have any liability for any errors or omissions with respect thereto. Solactive AG reserves the right to change the methods of calculation or publication and Solactive AG shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to the Index. Solactive AG shall not be liable for any damages, including, without limitation, any loss of profits or business, or any special, incidental, punitive, indirect or consequential damages suffered or incurred as a result of the use (or inability to use) of the Index.
Use of Simulated Returns
The Index was launched on May 4, 2020 and therefore has limited historical
performance. The Base Index has also recently launched and has similarly limited
historical performance. As a result, limited actual historical performance information is available for you to consider in making an independent investigation of the Index, which may make it difficult for you to evaluate the historical performance of the Index and make an informed investment decision than would be the case if the Index and the Base Index had a longer trading history.
Hypothetical back-tested performance prior to the launch of the Index and the Base
Index provided in this brochure refers to simulated performance data created by
applying the Index and the Base Index’s calculation methodologies to historical prices of the underlying constituents and the reference rate. Such simulated performance data has been produced by the retroactive application of a back-tested methodology in hindsight, and may give more preference towards underlying constituents that have performed well in the past. Hypothetical back-tested results are neither an indicator nor a guarantor of future results.
The hypothetical back-tested performance of the Index prior to May 4, 2020 cannot
fully reflect the actual results that would have occurred had the Index actually been calculated during that period, and should not be relied upon as an indication of the Index’s future performance. Because of the lack of actual historical performance data, your investment in any structured investment linked to the Index may involve a greater risk than investing in a security or other instrument linked to one or more indices with an established record of performance.
HSBC operates in various jurisdictions through its affiliates, including, but not limited to, HSBC Securities (USA) Inc., member of NYSE, FINRA and SIPC.
© 2020 HSBC USA Inc. All rights reserved.
All Sources: Solactive, EquBot, HSBC, Bloomberg, from 03/31/2010 to 3/31/2020