A Study On Equity Linked Notes And Its Development In China

As a new kind of structured financial product, Equity Linked Notes combine afixed-income security with a stock option strategy in one single instrument.According to the principle of risk-return balance, this product exposes the investors tocertain extent of risks , while providing them with higher returns than deposit andbonds. Equity Linked Notes became many investor's favorites in most of thedeveloped countries , and had already shown its potential in Hong Kong market.Especially in the 1990's, ELN had made rapid progress with issue scale,varietyinnovation and deal method. However, there is no such kind of securities in mainlandChina at present, and academic research on it is quite limited. Due to theaforementioned reasons, this dissertation would do qualitative analysis on ELN fromthe aspects of return and pricing based on the introduction of ELN's basic theory.Furthermore, this dissertation makes a feasibility study about introducing ELN tosecurity market of mainland China and put forward some suggestions on how todevelop ELN market .