New Issue: HSBC prices $499,000 9.5% autocallable yield notes linked to iShares China, Brazil funds

By Jennifer Chiou

New York, June 27 - HSBC USA Inc. priced $499,000 of 9.5% autocallable yield notes due June 21, 2012 linked to the iShares FTSE/Xinhua China 25 index fund and the iShares MSCI Brazil index fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The notes will be called at par if each underlying fund closes at or above its initial level on Sept. 16, Dec. 16, 2011, March 16, 2012 or June 18, 2012.

The payout at maturity will be par unless any fund closes below 75% of its initial level during the life of the notes. In that case, the payout will be par plus the return of the worst-performing fund, subject to a maximum payout of par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable yield notes
Underlying funds:	iShares FTSE/Xinhua China 25 index fund and iShares MSCI Brazil index fund
Amount:	$499,000
Maturity:	June 21, 2012
Coupon:	9.5%, payable quarterly
Price:	Par
Payout at maturity:	If any fund closes below 75% of initial level during life of notes, par plus return of worst-performing fund, up to maximum payout of par; otherwise, par
Call:	Automatically at par if each underlying fund closes at or above its initial level on Sept. 16, Dec. 16, 2011, March 16, 2012 or June 18, 2012
Initial levels:	$41.27 for FTSE/Xinhua China; $69.82 for Brazil
Pricing date:	June 23
Settlement date:	June 28
Agent:	HSBC Securities (USA) Inc.
Fees:	2.1%
Cusip:	4042K1JS3

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