An equity-linked note (ELN) is a type of structured product where its return is linked to the performance of its underlying equity. It is a note that employs leverage that designed for professional investors (PI) who seek higher returns.
ELNs are structured investment products which are embedded with derivatives, even consists of short side stock option. The return of the product is correlated to stock underlying’s performance. Investors can invest ELN if they do believe the selected companies get strong fundamental support and growth rate, market price would not drop drastically in the future.
However, it is NOT a protected deposit. NO principal protected, investors may lose all of their investments.

When the stock market maintains a low market volatility level or in a low-bond yield envoirment, ELNs provides investors a higher yield return alternatives of investment oppotunirtuy. At the settlement date, investors can receive gains as long as selected market closing price is higher than stock underlyings’ issued price; Meanwhile, investors have to buy the asset with issued price if the market closing price is lower than issued price.

ELNs are only suitable for professional investors (PI) whom acquired high risk tolerance and containedrich dervatives knowledge.