Alibaba/JD.com Autocallable Notes Investor Lawsuits
HSBC Alibaba/JD.com Autocallable Notes Results in Potential Significant Investor Risk
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 (HSBC Alibaba/JD.com ) ?
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
Responsibilities of Your Financial Advisor
Brokerage firms and financial advisors must comply with FINRA rules that require:
- Proper due diligence on any recommended investment
- Personalized recommendations based on an investor’s profile
- Full and fair disclosure of all material risks
When these duties are neglected and result in investor harm, firms may be held liable through FINRA arbitration.
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
Free Consultation
The White Law Group is a national law firm focused on representing investors in FINRA arbitration claims. With offices in Seattle, WA and Chicago, IL, we have recovered millions of dollars for clients across the country.
To discuss HSBC Alibaba/JD.com Autocallable Notes, call (888) 637-5510 or Visit White Law Group for more info.
Last modified: June 17, 2025
