Callable Bull/Bear Contracts

Key Features

CBBCs are classified into “Bull Contracts” and “Bear Contracts”. Investors buy Bull Contracts when they have a bullish outlook on the underlying asset, and Bear Contracts when they have a bearish outlook. The most distinctive feature of CBBCs is their mandatory Call Price. Once the price of the underlying asset touches the call price, the CBBC will immediately terminate trading and be settled.

Key Benefits

CBBCs allow investors to track the price movement of an underlying asset (such as a single stock, index, or commodity) with relatively small capital.

Potential Risks: The CBBCs are complex products. Investors should exercise caution in relation to them. Investors are warned that the price of the CBBCs may fall in value as rapidly as it may rise and holders may sustain a total loss of their investment. When considering to invest, investors should therefore ensure that they understand the nature of the CBBCs and carefully study the risk factors set out in the relevant listing documents and, where necessary, seek professional advice, before they invest in the CBBCs.