New Issue: HSBC prices $10.33 million knock-out buffer notes linked to five Asian indexes via JPMorgan

By E. Janene Geiss

Philadelphia, May 27 - HSBC USA Inc. priced $10.33 million of 0% knock-out buffer notes due Nov. 26, 2010 linked to a basket of five indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Hang Seng China Enterprises Index with a 33% weight, Korea Stock Price Index 200 with a 23% weight, MSCI Taiwan Index with a 20% weight, Hang Seng Index with a 16% weight and the MSCI Singapore Index with an 8% weight.

J.P. Morgan Securities Inc. is the agent.

If the basket falls below the knock-out buffer - 70% of the initial basket level - during the life of the notes, the payout at maturity will be par plus the basket return. Otherwise, the payout will be par plus the greater of the basket return and a contingent minimum return of 1.5%.

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying index:	iShares MSCI Mexico Index Fund
Amount:	$10,327,000
Maturity:	Nov. 26, 2010
Coupon:	0%
Price:	Par
Payout at maturity:	If basket falls below 70% of initial level during life of notes, par plus basket return; otherwise, par plus greater of basket return and 1.5%
Initial basket levels:	9,790.79 for Hang Seng China Enterprises Index; 179.01 for Korea Stock Price Index 200; 246.35 for MSCI Taiwan Index; 17,062.50 for Hang Seng Index; and 272.35 for MSCI Singapore Index
Pricing date:	May 22
Settlement date:	May 28
Agent:	J.P. Morgan Securities Inc.
Fees:	1.25%

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