New Issue: HSBC prices $2.32 million knock-out buffer notes linked to five Asian indexes via JPMorgan

By Angela McDaniels

Tacoma, Wash., Jan. 26 - HSBC USA Inc. priced $2.32 million of 0% knock-out buffer notes due July 28, 2011 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the Hang Seng China Enterprises index with a 33% weight, the Korea Stock Price Index 200 with a 24% weight, the MSCI Taiwan index with a 21% weight, the Hang Seng index with a 14% weight and the MSCI Singapore index with an 8% weight.

If the basket falls below 73.7% of its initial level during the life of the notes, the payout at maturity will be par plus the basket return. Otherwise, the payout will be plus the basket return, with a floor of par.

J.P. Morgan Securities Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying indexes:	Hang Seng China Enterprises (33% weight), Korea Stock Price 200 (24% weight), MSCI Taiwan (21% weight), Hang Seng (14% weight) and MSCI Singapore (8% weight)
Amount:	$2,315,000
Maturity:	July 28, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	If basket falls below 73.7% of initial level during life of notes, par plus basket return; otherwise, par plus basket return, with floor of par
Initial index levels:	11,975.65 for Hang Seng China Enterprises; 220.68 for Kospi; 284.85 for MSCI Taiwan; 20,726.18 for Hang Seng; 337.74 for MSCI Singapore
Pricing date:	Jan. 22
Settlement date:	Jan. 27
Agent:	J.P. Morgan Securities Inc.
Fees:	1.25%
Cusip:	4042K0M51

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