Weekly sweet autocall on Chinese stocks

Product Rationale

The underlying of the product is composed of four Chinese stocks from different sectors

Product Description
  • Issuer: Commerzbank AG
  • Maturity: 36 months
  • Currency: qUSD
  • Underlyings:

Underlying name

Bloomberg ticker

China Construction Bank

939 HK Equity

Tencent Holdings

700 HK Equity

Industrial and Commercial Bank of China

1398 HK Equity

Ping An Insurance Group

2318 HK Equity

  • Flat coupon: 10%
  • Knock-in barrier: 70%
  • Knock-in event: Occurs if the worst performing underlying closes below the knock-in barrier, only observed at maturity
  • Early redemption:
    Weekly observation starting from the fourth week until maturity:
    • If Wof(f) / Wof(i) is greater than knock-in barrier, then the security holder will receive 100% + flat coupon

  • At maturity:
    • If the knock-in event never happened, the security holder will receive 100% + flat coupon

    • Otherwise, Wof(f) / Wof(i)
  • Worst performing underlying:
    • The underlying, observed on the specific date, that has the lowest performance relative to its initial fixing level

    • Wof(f) is the final level of the worst performing underlying
    • Wof(i) is the initial level of the worst performing underlying
Key Benefits
  • This product offers the possibility to the security holder to get a flat coupon of 10% starting four weeks after the trade date
  • Knock-in event only observed at maturity
Key Risks
  • In a strongly trending equity market, the investor potentially receives a lower return from the note than compared to investing in the underlying stock itself
  • The investor is subject to the issuer risk of Commerzbank
  • Please also refer to Additional Risk Disclosures below

Additional Risk Disclosures
Before investing in this product, investors should carefully consider its appropriateness and suitability, and the following additional risks: 1. Issuer Risk: Any failure by the issuer to perform its contractual obligations, when due, may result in the loss of all or part of the invested capital. 2. Counterparty Risk: Any failure by Commerzbank AG to perform its contractual obligations, when due, may result in the loss of all or part of the invested capital. 3. Market Risk: Various market factors may affect the value of the investment or the underlying assets, including but not limited to the impact of volatility, interest rates, dividends (if any), foreign exchange. 4. Liquidity/Secondary Market Risk: Under normal market conditions Commerzbank will endeavour to provide a secondary market price. However, Commerzbank has no obligation to make a secondary market in the instruments concerned. Accordingly, under some circumstances, the secondary market for the investment may be limited and subject to wide bid/offer spreads. 5. Reinvestment Risk: The risk that the investment redeems prior to maturity at a time when reinvestment opportunities are not favourable for the investor. 6. Redemption Risk: The risk that the investor may receive substantially less than the amount invested, if they liquidate the investment prior to maturity. 7. Tax Risk: There may be tax implications based on where the investor resides. Please consult a tax professional before investing. 8. Legal Risk: There may be legal restrictions depending on where the investor is domiciled. It is advised to seek legal guidance prior to investing. When specified, the terms ‘guaranteed’ and ‘protected’ are subject to the creditworthiness and solvency of Commerzbank and although financially strong there is the possibility that returns may not be met in the unlikely event of a Commerzbank failure. For additional information on the product features and key risks, please contact your sales advisor or refer to the contacts page.