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Accumulator

Citic Pacific Ltd.. On 21 Oct 2008, Tues., shares of Citic Pacific Ltd. (00267), a component of Hong Kong's benchmark Hang Seng Index, closed at HK$6.52, (14% of 52 wk high 47.85).On the day, it plunged 55% as the company scrambled to minimize the fallout from its admission that leveraged currency

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Accumulator

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    1. Accumulator ---- Barrier options

    2. Citic Pacific Ltd. On 21 Oct 2008, Tues., shares of Citic Pacific Ltd. (00267), a component of Hong Kong's benchmark Hang Seng Index, closed at HK$6.52, (14% of 52 wk high 47.85). On the day, it plunged 55% as the company scrambled to minimize the fallout from its admission that leveraged currency positions could lead to nearly HK$15.5 billion of losses.

    3. Citic Pacific Ltd. On Tuesday, Citic Pacific, a Hong Kong-listed company with Chinese financial backing, said it had demoted or disciplined an unspecified number of employees from its finance department, including the daughter of Chairman Larry Yung. The company said it was in talks to sell all or part of its 56.67% stake in Dah Chong Hong Holdings Ltd., a listed automobile dealer and distributor of home products. Citic Pacific didn't offer a reason, but any deal would help it raise cash.

    4. Currency accumulator According to the company, it ran afoul of currency positions placed through structured products dubbed "accumulators." One such product is a contract in which an investor agrees to buy a specified amount of a security or currency at a fixed price over a particular time period, subject to certain conditions. The price often represents a discount to the spot market.

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