New Issue: HSBC sells $26.27 million knock-out buffer notes linked to five Asian indexes via JPMorgan

By Susanna Moon

Chicago, June 9 - HSBC USA Inc. priced $26.27 million of 0% knock-out buffer notes due Dec. 9, 2010 linked to a basket of five indexes, according to a 424B2 filing with the Securities and Exchange Commission.

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

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

The payout at maturity will be par plus the greater of the basket return and 0.5% unless the basket falls by more than the knock-out buffer of 30% during the life of the notes, in which case investors will receive par plus the basket return.

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying indexes:	Hang Seng China Enterprises index (33% weight), Korea Stock Price Index 200 (23% weight), MSCI Taiwan index (20% weight), Hang Seng index (16% weight) and MSCI Singapore index (8% weight)
Amount:	$26,272,000
Maturity:	Dec. 9, 2010
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus greater of basket return and 0.5% unless basket falls by more than knock-out buffer, in which case par plus basket return
Initial index levels:	10,862.05 for Hang Seng China, 177.77 for Kospi, 246.59 for MSCI Taiwan, 18,679.53 for Hang Seng and 290.85 for MSCI Singapore
Pricing date:	June 5
Settlement date:	June 10
Agent:	J.P. Morgan Securities Inc.
Fees:	1.25%

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