The SRP Wrapper Guide Asia Pacific 2024 is out and available for download.
The SRP Structured Investments Guide is part of SRP’s educational initiatives to support and promote structured products as efficient and safe instruments to provide access to markets, deliver returns for retail investors and protect their capital, and the different instruments available for investors.
The guide includes insights from key senior executives from UBS, Société Générale, Samsung Securities and HSBC China about the different wrappers used in the region
The second instalment of the series, produced by the SRP editorial team, provides an overview of wrappers used to deliver structured products to retail investors in the Asia Pacific (Apac) markets, across both over-the-counter (OTC) and listed venues.
The markets in focus are Hong Kong SAR, Singapore, China, South Korea, and Japan, with short summaries showcasing the main wrappers in Taiwan, Thailand and Maylasia. The guide includes insights from key senior executives from UBS, Société Générale, Samsung Securities and HSBC China about the different wrappers used in the region.
In Hong Kong SAR where the listed structured product segment is the most active in the region, Michael Chu (pictured), executive director at UBS Investment Bank highlighted the equity-linked investment (ELI) as the preferred vehicle for major foreign issuers to serve the mass retail.
In South Korea's equity-linked securities (ELS) have taken centre stage as the domestic financial regulator grilled local banks for mis-selling practices and ordered compensation to investors who suffered significant loss from the underperformance of ELS linked to the Hang Seng China Enterprises Index (HSCEI).
The report looks at how ELS and derivative-linked securities (DLS) are sold through funds by banks. Gyun Jun, senior derivative analyst at Samsung Securities said fully principal-protected products, known as equity-linked bonds (ELBs), have capitalised on ELS shortcomings.
We also look at the structured Uridashi wrapper in Japan, another market that has been heavily impacted by a series of tightened regulations recently, as sales have been hit by the recent changes. Only three distributors currently remain active in the mass retail market, according to Tomoyuki Sasai, head of global markets sales for Japan at Société Générale.
Meanwhile, Ying Wang, managing director, head of investments and wealth solution, wealth and personal banking (WPB) at HSBC China, talks about the growth of structured deposits and structured notes from a foreign distributor viewpoint in the country.
The report also sheds light on a variety of product types, including exchange-traded note (ETNs) in Taiwan, daily leverage certificates (DLCs), structured warrants and newly-launched structured certificates in Singapore, derivative warrants in Thailand and structured warrants in Malaysia.
Click here to download the guide.
Image: Alexlxm/Adobe Stock.
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