As Evergrande Group’s declined earnings and bond default shadow the Chinese real estate and Hong Kong stocks, the Hong Kong equity-linked investment (ELI) market has seen an increased issuance tracking the stock led by HSBC.

Since the Chinese conglomerate’s Hong Kong shares (HK:3333) began to slide from April after reaching a 52-week high of HK$17.26 (US2.2m) in mid-January, a group of ELI issuers including HSBC, Bank of China (Hong Kong) and Bank of East Asia have increased the use of the Evergrande share in their offerings in Hong Kong SAR as single share or within a basket of shares. ELIs are autocallable reverse convertible notes available to retail investors with a typical minimum investment amount of HK

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