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U.S. Index Warrants & CBBCs

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Want exposure in the US Stock market?
Don't miss the new UBS Nasdaq and Dow Jones CBBCs
NASDAQ 100 E-mini Futures
20,627
+103
(0.5%)
Last updated: 2024-07-16 02:29 (15 mins delayed)
4pm on Previous HK Trading Day : 20,616.2
Vs 4pm on Previous HK Trading Day: +10.8(0.05%)
High: 20,797
Previous Close: 20,524
Low: 20,508
Volume: 562.6 (K)
Cash Index Previous Close: 20,331.49(+0.59%)
Dow Jones E-mini Futures
40,558
+257
(0.64%)
Last updated: 2024-07-16 02:29 (15 mins delayed)
4pm on Previous HK Trading Day : 40,442
Vs 4pm on Previous HK Trading Day: +116(0.29%)
High: 40,654
Previous Close: 40,301
Low: 40,338
Volume: 124.1 (K)
Cash Index Previous Close: 40,000.9(+0.62%)
Last updated: 2024-07-16 02:29 (15 mins delayed)

Index Performance Comparison

*Data as of

US Economic Data

Date (Y-M-D)
Events

About the Indices

NASDAQ-100 Index

Benchmark index in the U.S. for the largest technology stocks

  • Launched in 1985
  • 100 of the largest non-financial companies listed on the Nasdaq
  • Include non-U.S. companies
  • It is a market capitalization-weighted index which is similar to the mainstream indices
  • Often confused with the well-known NASDAQ index, which is a composite index that includes almost all companies listed on the Nasdaq Stock Exchange, with a total of over 3,000 companies
Company % of index weight
Microsoft Corp (MSFT) 8.77%
Apple Inc. (AAPL) 8.59%
NVIDIA Corporation (NVDA) 7.90%
Amazon.com Inc. (AMZN) 5.30%
Broadcom Inc (AVGO) 5.08%
Meta Platforms Inc. (META) 4.55%
Alphabet Inc. (GOOGL) 2.78%
Alphabet Inc. (GOOG) 2.68%
Tesla Inc. (TSLA) 2.62%
Costco Wholesales Corp (COST) 2.50%
Source: Bloomberg, as of 2 JULY 2024
Dow Jones Industrial Average

Benchmark index in the U.S. for blue-chip stocks

  • Launched in 1896
  • It is a price-weighted index and tracks 30 most prominent companies traded on the New York Stock Exchange (NYSE) and Nasdaq. Its components are selected by an index committee
  • The compositions were chosen from S&P 500 Index. It covers all industries except transportation and utilities
  • Includes only US companies
  • The use of the word “Industrial” in the name was for historical reason, component companies now have little correlation with the industrial sector
Company % of index weight
UnitedHealth Group Inc (UHN) 8.30%
Goldman Sachs Group Inc/The (GS) 7.78%
Microsoft Corp (MSFT) 7.66%
Home Depot Inc/The (HD) 5.64%
Caterpillar Inc (CAT) 5.52%
Amgen Inc (AMGN) 5.22%
Visa Inc (V) 4.42%
Salesforce Inc (CRM) 4.30%
McDonald's Corp (MCD) 4.19%
American Express Co (AXP) 3.92%
Source: Bloomberg, as of 2 JULY 2024

US Index CBBCs FAQs

Can Mandatory Call Events be triggered for US Index CBBCs during HK stock trading hours?

No. A Mandatory Call Event is triggered by the spot level of US Indices so can only occur during the US stock market trading hours. UBS US Index CBBCs are traded on the Hong Kong Stock Exchange. Therefore, if US Index Futures reach the call level of a CBBC during HK stock trading hours, the issuer will continue to quote for the CBBCs (unless the theoretical value of the CBBCs are less than HKD0.01, the issuers cannot quote).Investors can still trade during the HK stock trading hours even when the related future price is lower than the call level of bull contracts or higher than the call level of bear contracts.

During US stock trading sessions, for CBBCs that are already listed, if the US Index spot level touches or goes beyond the call level of the US Index CBBCs, Mandatory Call Events will be triggered for those CBBCs. For CBBCs to be listed on the next HK trading day, if the US Index closing level touches or goes beyond the call level of the US Index CBBCs, Mandatory Call Events will be triggered for those CBBCs as well. The Mandatory Call Events will be reflected before the opening of the next HK stock trading day.

As US Index CBBCs are traded across two different time zones, if the next trading day falls on a HK holiday, the Mandatory Call Event will be postponed and only reflected on the next HK trading day.

How to calculate the residual value of US Index CBBCs after Mandatory Call Events?
If the investor holds a US Index CBBC until expiry, how is settlement value calculated?

US Index Warrants FAQs

Given the different trading hours between the United States and Hong Kong, will the price of U.S. index warrants move during Hong Kong trading hours?
The price of underlying warrants will move during Hong Kong trading hours since the issuers use underlying futures as hedging tools. In the case of the Nasdaq, issuers use NASDAQ 100 E-mini Futures, whereas the Dow Jones E-mini Futures is used as hedging tool for the Dow Jones index warrants. These futures have a very short maintenance period and are traded on the Chicago Mercantile Exchange's electronic trading platform for nearly 24 hours, which means that when events occur in the APAC region or Europe while the U.S. stock market is closed, it will still reflect on the U.S. stock futures immediately. Hong Kong investors can adjust their strategy before the U.S. stock market opens.
Are the price movement and settlement of U.S. index warrants different from those of Hong Kong index warrants?
What other risks associated with U.S. index warrants that investors should be aware of?

Need-to-know for U.S. Index Warrants & CBBCs

Different Time Zone
Exchange Rate Risk
Always Refer to Issuer's Website
Observation period of US stock market trading hours
Due to time zone differences, investors should refer to the price of underlying futures quoted at 4PM (Hong Kong Time) on the previous trading day when calculating the product performance