The products include private equities and hedge funds, primary bonds, equity block trades and private placements of structured notes, according to an HSBC press statement.
Under the category of private equities and hedge funds, HSBC will give its Jade clients access to private real estate investments in global locations, as well as hedge funds available to private banking clients. There will be no capital lock-up or capital calls, and there will be a discounted initial charge of 0.95% on transaction value for Jade clients.
They can also now gain access to the primary market of newly issued bonds (including green bonds) and private placements not available to the public with an entry threshold of HK$1m ($128,200). Jade clients will also be given a discount of up to 20% on bond purchases and a cash rebate of 10 basis points if they are buying bonds with HSBC for the first time.
They will also be able to subscribe to private placements through HSBC’s online channels in the near future.
HSBC set up its Jade category in January 2019 to target Hong Kong’s growing population of millionaires. The banks said in February that it plans to spend $3.5bn and hire 5,000 wealth management staff in Asia during the next five years; a year ago it combined its retail banking and wealth management businesses into one unit while pledging to cut 15% of its global workforce over three years.
“The city’s high net worth population is expected to grow by an average of 12% annually, driving demand for more sophisticated investment solutions,” said Sami Abouzahr, head of customer wealth, wealth and personal banking, Hong Kong, HSBC, in the statement.
In the second half of 2021, HSBC Jade clients will also be able to buy blocks of equities offered by a specific listed company or its major shareholders at a discount. HSBC has also started to offer structured notes to its Jade clients based on the structure of their choice, with a minimum ticket size of HK$500,00. With different payoff types, these structured notes track the performance of popular Hong Kong stocks, US stocks, and major and customised indices.
HSBC Jade clients will be able to subscribe to blocks of equities and confirm allotment results through Easy Invest, HSBC’s dedicated investment mobile app.
The “HSBC Jade Private Market Investments” service is open to high-net-worth clients with liquid assets of at least $1m and who are designated as “professional investors”. HSBC in Hong Kong manages assets of $249bn for Jade and private banking (with a minimum of $5m of liquid assets) clients, according to the UK-headquartered bank.