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10 Sector Allocations 1.93% 15.69% 11.70% 14.70% 4.73% 14.36% 3.53% 5.63% 1.78% 1.15% 5.05%
9.58% 8.89% 14.02% 16.28% 15.61% 5.42% 4.98% 3.99% 3.89% 0 5 10 15 Transportation Technology
Services Health Technology Finance Energy Minerals Electronic Technology Consumer Services
Consumer Non-Durables Consumer Durables Communications Portfolio Solactive US Large &
Mid Cap Index Contributions to Return -0.15% -1.11% -0.18% -0.84% -0.2% -1.33% -0.27% -0.01%
-0.57% -0.04% -0.05% -0.18% -0.18% -0.26% -0.29% 0.01% -0.47% -0.02% -0.03% -0.0% −1.5
−1 −0.5 0 Transportation Technology Services Health Technology Finance Energy
Minerals Electronic Technology Consumer Services Consumer Non-Durables Consumer Durables
Communications Portfolio Solactive US Large & Mid Cap Index Daily Risk Control Allocation
- Historical & Simulated* As of 12/30/2022 3Y Average 5Y Average 10Y Average Equity Portfolio
22.05% 28.28% 34.09% 42.14% Cash 77.95% 71.72% 65.91% 57.86% * Source: Solactive, EquBot,
HSBC, Bloomberg, from 04/30/2004 to 12/30/2022. The graph and tables above set forth the
hypothetical back-tested performance of the Index from April 30, 2004 through November 19,
2019 and actual index performance thereafter. See the risk factors and “Use of Simulated
Returns” herein. Risks Relating to the Index HSBC USA Inc. and HSBC Bank USA, N.A.
(together, “HSBC”), are members of the HSBC Group. Any member of the HSBC Group
may from time to time underwrite, make a market or otherwise buy and sell, as principal,
structured investments, or together with their directors, officers and employers may have
either long or short positions in the structured investments, or stocks, commodities or currencies
to which the structured investments are linked, or may perform or seek to perform investment
banking services for those linked assets mentioned herein. These activities maybe in conflict
with the interests of investors of debt obligations or certificates of deposit issued by
members of the HSBC Group. The Index may be partially uninvested. The strategy tracks the
excess return of a notional dynamic basket of equities and cash over a change in the ICE
LIBOR USD 3 Month interest rate. The weight of a Cash Investment (if any) for a Monthly Reference
Portfolio at any given time represents the portion of the Monthly Reference Portfolio that
is uninvested in the applicable equity basket at that time. As such, any allocation to a
Cash Investment within the Index, which also accrues at the ICE LIBOR USD 3 Month interest
rate, will not affect the level of the Index. The Index will reflect no return for any uninvested
portion (i.e., any portion represented by a Cash Investment). Accordingly, to the extent
that the Index is allocated to the Cash Investment, it may not reflect the full increase
of any relevant equity component. Under certain circumstances, the Index may be 100% allocated
to the Cash Investment. Important Disclaimer Information This document is for informational
purposes only and intended to provide a general overview of the AI Powered US Equity Index
and does not provide the terms of any specific issuance of structured investments. The material
presented does not constitute and should not be construed as a recommendation to enter into
a securities or derivatives transaction. Prior to any decision to invest in a specific structured
investment, investors should carefully review the disclosure documents for such issuance
which contains a detailed explanation of the terms of the issuance as well as the risks,
tax treatment and other relevant information. Investing in financial instruments linked to
the AI Powered US Equity Index is not equivalent to a direct investment in any part of the
AI Powered US Equity Index. Investments linked to the AI Powered US Equity Index require
investors to assess several characteristics and risk factors that may not be present in other
types of transactions. In reaching a determination as to the appropriateness of any proposed
transaction, clients should undertake a thorough independent review of the legal, regulatory,
credit, tax, accounting and economic consequences of such transaction in relation to their
particular circumstances. This brochure contains market data from various sources other than
us and our affiliates, and, accordingly, we make no representation or warranty as to the
market data’s accuracy or completeness and we are not obligated to update any market
data presented in this document. All information is subject to change without notice. We
or our affiliated companies may make a market or deal as principal in the investments mentioned
in this document or in options, futures or other derivatives based thereon. Solactive AG
Solactive AG is the administrator and calculation agent of the AI Powered US Equity Index.
The financial instruments that are based on the AI Powered US Equity Index are not sponsored,
endorsed, promoted or sold by Solactive AG in any way and Solactive AG makes no express or
implied representation, guarantee or assurance with regard to: (a) the advisability in investing
in the financial instruments; (b) the quality, accuracy and/or completeness of the Index;
and/or (c) the results obtained or to be obtained by any person or entity from the use of
the Index. Solactive AG does not guarantee the accuracy and/or the completeness of the AI
Powered US Equity Index and shall not have any liability for any errors or omissions with
respect thereto. Solactive AG reserves the right to change the methods of calculation or
publication and Solactive AG shall not be liable for any miscalculation of or any incorrect,
delayed or interrupted publication with respect to the AI Powered US Equity Index. Solactive
AG shall not be liable for any damages, including, without limitation, any loss of profits
or business, or any special, incidental, punitive, indirect or consequential damages suffered
or incurred as a result of the use (or inability to use) of the AI Powered US Equity Index.
Use of Simulated Returns Any historical performance information included in this document
prior to November 19, 2019 represents only hypothetical historical results. No representation
is being made that the AI Powered US Equity Index will achieve a performance record similar
to that shown. In fact, there may often be sharp differences between hypothetical performance
and actual performance. Back-testing and other statistical analysis material provided to
you in connection with the explanations of the potential returns associated with an investment
in a debt obligation or certificate of deposit linked to the AI Powered US Equity Index use
simulated analysis and hypothetical assumptions in order to illustrate the manner in which
the AI Powered US Equity Index may have performed in periods prior to the actual existence
of the AI Powered US Equity Index. Alternative modelling techniques or assumptions may produce
different hypothetical information that might prove to be more appropriate and that might
differ significantly from the hypothetical information set forth above. The back-tested data
was produced by applying the AI Powered US Equity Index methodology to historical data, including
information and sources available at each specific point of time in history. New information
and sources were incorporated one timestep at a time and only information with validated
time stamps was considered. The results obtained from “back-testing” information
should not be considered indicative of actual results that might be obtained from an investment
or participation in a financial instrument or transaction referencing the AI Powered US Equity
Index. You should not place undue reliance on the “back-testing” information,
which is provided for illustrative purposes only. HSBC provides no assurance or guarantee
that the AI Powered US Equity Index will operate or would have operated in the past in a
manner consistent with the results presented in these materials. HSBC USA Inc. has filed
a registration statement (including a prospectus and prospectus supplement) with the Securities
and Exchange Commission for any offering to which this free writing prospectus may relate.
Before you invest, you should read the prospectus and prospectus supplement in that registration
statement and other documents HSBC USA Inc. has filed with the SEC for more complete information
about HSBC USA Inc. and any related offering. You may get these documents for free by visiting
EDGAR on the SEC’s offering will arrange to send you the prospectus and prospectus
supplement if you request them by calling toll-free 1-866-811-8049. Hypothetical back-tested
results are neither an indicator nor a guarantee of future returns. Actual results will vary,
perhaps materially, from the analysis implied in the hypothetical information. You should
review and consider the hypothetical information only with the full AI Powered US Equity
Index methodology. HSBC operates in various jurisdictions through its affiliates, including,
but not limited to, HSBC Securities (USA) Inc., member of NYSE, FINRA, and SIPC. ©2023
HSBC USA Inc. All rights reserved. Monthly Performance Report - December 2022 |
