A cautious start

Author: | Published: 1 Oct 2009

Hong Kong was, until September 2008, one of the most active markets in Asia for retail structured products. The collapse of Lehman Brothers in mid-September 2008 and the ensuing public protests over the Lehman-arranged minibonds and similar structured investment products brought the market to a sudden halt. Until August 2009, the Securities and Futures Commission (SFC), the Hong Kong regulator responsible for the authorisation of offering material, gave its blessing to no new structured products or even to annual updates of existing product programmes, effectively closing the market for ten months. During this period, product providers continued to work with the SFC and this effort has finally borne fruit in the first new structured product authorisations since last September: a simplified Bull Equity-Linked Investment (Bull ELI) product is now once more available for the famously adventurous Hong Kong investor....