Principally protected, the "Nuovo 2006 Retail Commodity Linked Auto-Callable Notes" are three year notes linked to the price performance of an equally weighted basket of four commodities - WTI crude oil, silver, nickel and copper.
They are sure to attract those who view the commodity market as a bull-run here for a few more years.
The potential annualised return is 11% per annum, if the valuation price of each commodity on any of the valuation dates, set a year from now and then every six months thereafter, is at or above its limit price.
The limit price for each commodity is 100% of its initial price. There will be four chances of automatic early redemption along the way (again semi-annually starting one year after issue).
The minimum investment is $5,000 and the notes will be distributed by Bank of America, Bank of China (Hong Kong), Bank of Communications, Bank of East Asia, Chiyu Banking Corporation, Citibank, Citic Ka Wah Bank, Dah Sing Bank, Mevas Bank, Nanyang Commercial Bank, Shanghai Commercial Bank and Wing Hang Bank (the Distributors) until July 31.
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