HSBC plans trigger autocallable notes tied to iShares FTSE China

By Marisa Wong

Madison, Wis., Dec. 18 - HSBC USA Inc. plans to price 0% trigger autocallable optimization securities due Dec. 29, 2017 linked to the iShares FTSE China 25 index fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par plus an annualized return 9% if the fund closes at or above the initial level on any quarterly observation date after one year. The exact call premium will be set at pricing.

If the notes are not called and the shares finish at or above the trigger price, the payout at maturity will be par. The trigger price will be between 60% and 65% of the initial price and will be set at pricing.

Otherwise, investors will be fully exposed to losses.

HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.

The notes will price on Dec. 27 and settle on Dec. 31.

The Cusip number is 40433T513.

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