HSBC Alibaba/JD.com Autocallable Notes Investor Lawsuits
The White Law Group is investigating potential securities lawsuits involving HSBC Alibaba/JD.com Autocallable Notes.
Investors who purchased a structured product from HSBC linked to Alibaba and JD.com may face significant downside risk depending on stock performance.
The structured note in question—HSBC’s Autocallable Return Notes linked to Alibaba Group Holding Limited and JD.com, Inc. (CUSIP: 40438CD73)—was issued in November 2020 with a face value of $20,000,000. The note’s performance is based on the least performing stock, and poor performance could reduce or eliminate the payout.
Details of the Investment- HSBC Alibaba/JD.com
- Issue Date: November 23, 2020
- Linked Securities: Alibaba Group (NYSE: BABA) and JD.com (NASDAQ: JD)
- Product Type: Autocallable Return Note
- Face Value: $20,000,000
- Final Payout: Depends on lowest performing stock on November 22, 2024
- If lowest performer ? 60% of initial: $1,000 + call premium ($682.80 final)
- If < 60%: $1,000 × (final ÷ initial price) — substantial loss
- Total Loss Potential: Up to 100% of principal if both stocks underperform
Why Could the Investment Lose Value?
Autocallable products based on multiple stocks increase risk. In this case:
- Called if both stocks ? initial price on observation dates.
- If not called and lowest is < 60% of initial, investors take proportional loss.
- No upside beyond fixed call premium.
Understanding the Risks of Autocallable Notes
Though marketed with high yield potential, investors face:
- High volatility exposure (BABA, JD)
- Credit risk of HSBC
- Principal at risk if one stock underperforms
- No dividend income
Did Your Financial Advisor Recommend This Investment (HSBC Alibaba/JD.com) ?
If unsuitable based on your profile, you may be eligible for FINRA arbitration.
FINRA Arbitration vs. Class Action
- Arbitration often better for large claims
- Class actions are less personal and typically capped
https://whitesecuritieslaw.com/finra-arbitration-attorney/
Free Consultation
To discuss HSBC Alibaba/JD.com Autocallable Notes, call (888) 637-5510.
Visit www.whitesecuritieslaw.com for more info.
Last modified: May 28, 2025