[Rewards] FCN: Earning Rental Income in a Volatile Market – Share Your Insights and Win 66 Points!

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🎁Why do affluent/high-net-worth investors favor purchasing FCNs? How does it differ from managing their own stock investments?

[Prize Alert] There's a promotional activity at the end of this article, with a chance to win double points—don't miss out!~~

In highly volatile markets, high-net-worth individuals have long discovered a secret path to earning monthly income and purchasing quality stocks at a discount. Come take a look!

Against the backdrop of the Fed's interest rate cuts, global trade and political uncertainties are driving continued volatility in Hong Kong and U.S. stock markets. Is your mood also on a rollercoaster ride? You want to buy Tesla, NVIDIA, Tencent, Alibaba... but fear catching the falling knife; you consider long-term holding, yet dread sudden short-term account losses.

While you're still anxious about daily market fluctuations, many high-net-worth investors silently keep buying FCNs, achieving"Monthly income in volatility, discounted stock purchases during downturns, ultimately leading to long-term gains."！

While others lament 'turning off the lights to eat instant noodles' in volatile markets, many wealthy individuals are using FCNs to 'collect rent every month'!

1. It’s not just about "stable cash flow," but rather the "peaceful experience of receiving a salary amidst market volatility."

We all know that high-quality U.S. equities generally follow an "upward trend with fluctuations." —Tesla, NVIDIA, Apple, Google, S&P 500—all show upward trajectories when viewed on longer-term charts.

However, knowing and holding are two different things. Especially during periods of prolonged volatility, prices may oscillate back and forth like a loom. For instance, if the stock price was 410 six months ago and rose to 460 six months later, one would expect significant gains. However, during this period, many investors were shaken out by one or two sharp fluctuations. Constantly trading in and out might even result in losses.

However, FCN investors have a much better experience!

As long as there is no early redemption within the next six months,they can receive guaranteed monthly coupon payments(typically ranging from 10% to 30% annualized). This allows them to ignore intraperiod volatility and simply focus on the final share price at maturity, effectively earning steady income throughout the volatile period and securing consistent returns.

*The image is for illustrative purposes only to facilitate understanding and does not represent any investment return forecasts or recommendations.

2. Not Just "Picking Up Bargains," But Rather "Bottom Fishing with Protection"

For example, we might try to bottom-fish NVIDIA shares at $182, only to watch helplessly as they fall to $150, leaving us filled with regret.

FCN investors, however, can use FCNs to set a 25%-discounted buy order(e.g., at $132.75).：

If the FCN expires and the stock price falls to this level, they can acquire their desired stocks at a discounted price while collecting coupon payments. If the stock price does not fall to this level by expiration, they would have already earned returns through continuous coupon collection during the volatility period, mitigating the anxiety of daily market monitoring and reducing potential errors from frequent trading.Investments with coupon protection allow them to truly achieve 'a strategic approach to both offense and defense.'

*The image is for illustrative purposes only to facilitate understanding and does not represent any investment return forecasts or recommendations.

FCN: A New Wealth Management Plan with 'Regular Interest Payouts'

So, what exactly is an FCN? We can think of purchasing an FCN as entering into a 'conditional wealth management agreement' with a brokerage firm:

1. Select the underlying assets: Choose a basket of assets you are optimistic about in the long term and are willing to accumulate at a discount (e.g., Tesla, Taiwan Semiconductor, and Tencent).

2. Set the rules: Agree with the brokerage firm on the following:

a. Coupon payment rule: Fixed monthly coupon payments during the holding period (e.g., 10% annualized).

b. Early termination rule: After one month, observe daily; if the stock price reaches a certain increase, the product will terminate early.

c. Delivery rules: If the stock price falls more than the threshold at the end of the period compared to the beginning, these assets will be purchased at the pre-agreed price (e.g., 75% of the original price).

3. Automatic operation: Once signed, the system will automatically monitor, and you only need to periodically check your account to collect interest.

Here is a real-life example of an FCN issued in 2025:

This FCN operates as follows:

1. Early redemption with an annualized return of 16.92%: One month later, daily observations are conducted. If on any given day all stock closing prices increase by >100% compared to the initial price, early redemption is triggered, allowing investors to receive 100% of their principal plus fixed monthly payouts during the holding period.

2. Maturity with an annualized return of 16.92%: If early redemption does not occur and the final closing prices of all stocks fall ≤25% compared to the initial prices, investors will receive 100% of their principal plus six months of monthly payouts.

3. Maturity with automatic stock purchase: If early redemption does not occur and on the maturity date the final closing price of at least one stock falls >25% compared to the initial price, investors will receive six months of full coupon payments, and their principal will automatically be used to purchase the stock with the largest decline at 75% of the initial stock price, effectively acquiring the desired stock at a lower discount.

The closing prices of the linked assets for this period are as follows: Tesla 443.46, Alphabet C 255.04, NVIDIA 181.16, thenInvestors holding this FCN only need to focus on two key prices:

Best-case scenario:As long as the stock price does not trigger a knock-out → continue to receive dividends.

Early termination scenario:One month later, on any observation date, if the closing prices of all three stocks reach the knock-out price → the product will terminate early, and investors will receive their principal and the current coupon payment.

Worst-case scenario: i.e., purchasing at a discount. If the stock price falls below the strike price at maturity → the principal will be used to purchase the worst-performing stock among the three at 75% of the agreed price + coupon. After placing an order, the system will automatically track key prices, relieving the pressure of monitoring the market while providing a guaranteed base yield, making investment more worry-free.

Thus, it is not difficult to conclude that[Key Differences Between FCN and Direct Stock Trading]：

FCN is not just a privilege for high-net-worth individuals.

At Futu, ordinary investors can also easily use FCN, which is highly suitable for individuals like you:

Value investors with a "short-to-medium-term bullish outlook":

Based on certain investment analyses, they are optimistic about specific sectors/representative stocks in the short-to-medium term but lack the time for in-depth research and cannot pinpoint exact buying or selling timing. They can only predict general trends. Through coupon-protected FCNs, they achieve more stable investment operations.

Sufferers of "bottom-fishing phobia":

When the companies they favor drop in value, they want to buy at the bottom, knowing that it’s unlikely to purchase at the lowest price, but also hoping not to overpay.

Anxious participants in volatile markets:

In volatile markets, they tend to chase rallies and sell in panic, disliking sharp fluctuations in account value. They seek to secure steady cash flows.

Common concerns addressed:

– Will my principal be entirely lost?No. The worst-case scenario is that you purchase the stocks you originally favored at a discounted price you approve of. This means your cost of building a position is lower compared to directly establishing a position at the beginning of the contract.

– “Is the threshold very high?”Now on Futu, you can participate with as little as 100,000 HKD / 15,000 USD, allowing you to experience strategies used by top investors with minimal capital.

Get started in three easy steps and experience the 'rent collection in volatile markets' model.

Now, on the Futu platform, ordinary investors can easily allocate FCNs. The entire process is clear and transparent, with a minimum investment of 100,000 HKD / 15,000 USD.

Your next steps guide:

1. Click here to learn more about Futu FCNs>>

2. Spend 3 minutes reviewing the list of popular FCN products to see which stock targets are familiar to you.

3. Start your first 'Volatility Market Income'!

Pro tip: Not sure where to start? Trying out FCN products related to a stock you're most familiar with and confident about (such as Tencent, NVIDIA, or Tesla) is an excellent starting point.

[Prize Event]

After reading this article, you should now have a solid understanding of FCN.Quickly summarize the key highlights/advantages of FCN! Which highlight appeals to you the most?Leave a comment in the comments section,with no fewer than 30 words, and you can earn 66 points!Xiang Xiang will also randomly selectthree best comment awards, giving away 666 points!Act quickly!

Event Duration:From November 4 to November 21, 23:59.

[Important Notes]

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The final list of award recipients for this event will be announced within 30 business days after the conclusion of the activity. For any inquiries, please contact @象象.

Disclaimer: This content does not constitute an offer, solicitation, recommendation, opinion, or any guarantee regarding any securities, financial products, or instruments. This content is issued by Futu Securities International (Hong Kong) Limited or its group companies, compiled and published by Futu Securities, and has not been reviewed by the Hong Kong Securities and Futures Commission. Investing in structured investment products is not equivalent to investing in their underlying assets. Investors are exposed to the credit risk and insolvency risk of the issuer, guarantor, and/or other identified counterparties (as applicable). Investors should also note that the issuer may terminate the investment prematurely. Investment involves risks, and investors should proceed with caution and understand that they may lose the entire investment amount. Before making any investment decisions, investors should carefully read and fully understand the sales documents and terms and conditions of the relevant investment product (including the risk disclosures contained therein), and should not rely solely on this content when deciding to invest in structured investment products. Where necessary, appropriate professional advice should be sought.

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