Advantage of J.P. Morgan FX warrants

Alternative investment tool to diversify portfolio

J.P. Morgan's FX warrants provide an alternative investment tool to diversify your portfolio. These warrants are linked to currency pairs with foreign currencies as the base currency and HKD as the quote currency. It aligns with the growing investors' demand for HKD as the quote currency in foreign exchange transactions. This convention not only supports investors' ability to analyze currency movements but also empowers them to capitalize on directional views.

Investors only need to select the foreign currency starting with the product name and choose between a call (bullish) or put (bearish) product. The process is designed to be intuitive and easily understandable.

Manage foreign exchange risk and hedge against currency fluctuation

For local investors who have cross-border business dealings, or hold overseas properties or stock markets, foreign exchange fluctuations can significantly impact returns. Using foreign exchange warrants with the Hong Kong dollar as the quote currency for exchange risk management may be more straightforward.

The terms are designed to be more convenient for investors

JPY/HKD products are denominated in JPY per 100 yen

In order to facilitate a better understanding of foreign exchange warrants for Hong Kong investors, the base currency of our JPY/HKD Warrants will be standardized at 100 JPY per unit. This is based on the common usage of '100 yen (Japanese yen)' as the conversion unit by many Hong Kong investors and mainstream local media.

For example, if the exchange rate per 100 yen to the Hong Kong dollar is "5.5", presenting it as 1 yen to the Hong Kong dollar would quote the exchange rate at 0.055 Hong Kong dollars. This method, using quotes per 100 yen, is designed to make it more straightforward, especially for investors who are new to forex.

Conversion ratio of Offshore Chinese Renminbi (CNH) to HKD warrants is 1 to 10

In contrast to the typical conversion ratios found in single stocks linked warrants (e.g. 500 to 1, 100 to 1, 50 to 1, 10 to 1, etc.), J.P. Morgan's current CNH/HKD warrants have a conversion ratio of 1 to 10. This unique ratio offers the advantage of relatively higher sensitivity and may be more attractive to investors seeking to capture and capitalize on short-term trends in CNH against the Hong Kong dollar. From issuer’s perspective, this ratio provides flexibility to introduce terms with appropriate tenors and strike prices, fostering a conducive environment for investors' deployment.

The above information provided by J.P. Morgan Securities (Asia Pacific) Limited ("J.P. Morgan") is for information and discussion purposes only and is not intended as an offer, invitation, inducement, advice, recommendation or solicitation for the purchase or sale of any above-mentioned listed structured products or financial instruments nor does it constitute a commitment by J.P. Morgan or its affiliates ("J.P. Morgan Group") to enter into any transaction. Past performance is not indicative of future results. There can be no assurance that future results or events will be consistent with any opinions, forecasts or estimates herein.
FX warrants (or currency warrants) are non-collateralised structured products. The price of the structured products may fall in value as rapidly as it may rise and investors may sustain a total loss of their principal invested. J.P. Morgan does not act as a fiduciary for or an advisor to any investor and is not responsible for determining the legality and suitability of an investment in any products or financial instruments by any prospective purchaser or existing holders. Investors must make their own risk assessment and where necessary, seek professional advises. Investor should not invest in these structured products unless they carefully read and understand the terms and conditions, risk factors and other information as set out in the relevant listing documents, and fully understand the features of the structured products and are willing to assume the risks associated with them.