HSBC to price performance securities linked to index basket

By Jennifer Chiou

New York, June 7 - HSBC USA Inc. plans to price performance securities with partial protection due June 30, 2010 linked to an Asian index basket, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the Nikkei 225, Hang Seng China Enterprises, Kospi 200 and the MSCI Singapore indexes.

If the basket performance is positive, investors will receive par plus the return on the basket times a participation rate that will be between 110% and 120%. The exact participation rate will be set at pricing.

If the basket declines by less than 20%, the payout will be par. Investors will lose 1% for each 1% that the basket declines beyond 20%.

The notes are expected to price on June 25 and settle on June 29.

UBS Financial Services, Inc. and HSBC USA Inc. will be the underwriters.

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