Taiping Securities (HK) Co Limited. Securities Cash Account Agreement Application Form (Companies)

Transcription

1 Taiping Securities (HK) Co Limited China Insurance Group Bldg., 141, Des Voeux Road Central, Hong Kong Tel: Fax: Licensed Corporation of SFC (CE No. AAE494) & Participant of The Stock Exchange of Hongkong Ltd. Securities Cash Account Agreement Application Form (Companies) This Application Form is to be read in conjunction with, and forms part of, the Taiping Securities (HK) Co Limited Securities Cash Account Agreement ( Securities Cash Account Agreement ). Words defined in the Securities Cash Account Agreement have the same meaning when used in this Application Form. Taiping Securities (HK) Co Limited ( Taiping ) is currently licensed to engage in Type 1 regulated activity under the Securities and Futures Ordinance (Cap 571) ( SFO ). You should complete this form if the customer is a corporation. If the customer is an individual, trust or partnership, a different Application Form will need to be completed. Please speak to your Taiping representative. What do you need to do? 1. Complete this Application Form by typing, or handwriting in blue or black pen ink. Do not use correction fluid/tape or pencil. Please initial all corrections. Complete one form for each customer. 2. This Application Form and the ancillary documents (if any) to be signed (in a language of your choice) are intended to create legal relations between you and Taiping. You should therefore consult your own legal, tax and financial advisers prior to signing. 3. Each agent or power of attorney acting on behalf of a customer must identify themselves and provide supporting documentation. 4. Please provide certified copies of the original identity documents as specified on each form. A list of people who can certify documents is included in this form. Section 1 Customer details Corporate information Company name 1

2 Is the company acting in the capacity as a trustee? If yes, please speak to your Taiping representative, as additional forms may need to be completed. Yes No Registration Number/Certificate of incorporation number Place of registration/incorporation Date of registration/incorporation Registered office address in place of incorporation Principal business address (If different to registered address) (P.O. Box not accepted) Telephone number address Nature and details of business Mailing / Statement address (select one) Registered address Principal business address address Is any of your directors, beneficial owners, or authorised signatories, a politically exposed person ( PEP )? A PEP is a person who has been entrusted with a prominent public function such as a head of state, senior politician, judicial or military official. A spouse, partner, child, parent, or close associate of such an individual is also considered to be a PEP. Yes No 2

3 Internet Services Confirm to use (Pls provide address Confirm NOT to use in page.2) Real Time Quote Services YES Real Time Quote Services NO (subject to service charge) Investment purpose Hedging Capital gain Dividend income Speculation Others If other, please state: Source of Assets Business profits Investment Others (please specify): Origin of Source of Funds Hong Kong Mainland China Macau United States Canada Others (please specify): Expected daily transaction volume <HKD50,000 HKD50, ,000 HKD250, ,000 >HKD500,001 Financial information Paid-up share capital (if applicable): Latest liquid assets value: Latest net assets value: Latest annual profits after tax: Related account(s) Is any director, shareholder or ultimate beneficiary or authorised person of the customer a customer of Taiping Affiliate? Yes No If yes, please state the account no./name: 3

4 Is any director, shareholder or ultimate beneficiary or authorised person of the customer an employee of Taiping Affiliate? Does any director, shareholder or ultimate beneficiary or authorised person of the customer have any relationship with any director or employee of Taiping Affiliate? Is any director, shareholder or ultimate beneficiary or authorised person of the customer a director or an employee of any exchange participant of The Stock Exchange of Hong Kong Limited or any person licensed by the Securities and Futures Commission? Yes No If yes, please state his/her name and position: Yes No If yes, please state his/her name and relationship: Yes No If yes, please provide the name of the licensed corporation and consent letter from the corporation Director information Please provide the following details in respect of each director (please advise if further space is required). Director 1 Director 2 Name Are you a politically exposed person ( PEP )? A PEP is a person who has been entrusted with a prominent public function such as a head of state, senior politician, judicial or military official. A spouse, partner, child, parent, or close associate of such an individual is also considered to be a PEP. Yes No Yes No Director 3 Director 4 Name Are you a politically exposed person ( PEP )? A PEP is a person who has been entrusted with a prominent public function such as a head of state, senior politician, judicial or military official. A spouse, partner, child, parent, or close associate of such an individual is also considered to be a PEP. Yes No Yes No Proof of identity of directors All directors have attached a certified copy of Hong Kong identity card or passport 4

5 Section 2 Customer s agent (if applicable) Personal information Title Given name(s) Surname Proof of identity and authorization to act on behalf of the Customer Customer s agent,, CE No. hereby acknowledge and declare that I am the appointed customer s agent for the named customer in the dealing in securities and shall be responsible for monitoring and ensuring prompt settlement in respect of the customer s securities account. Customer, hereby appoint the above named person as our agent to deal with all the transactions in respect of our securities account with Taiping. If we need to change our agent in the future, we will inform Taiping in writing and make further arrangement. Customer agent s Signature Date / / Customer s Signature Date / / 5

6 Section 3 Beneficial ownership Please provide the following details in respect of each beneficial owner of the corporation (please advise if further space is required). Beneficial owner, in relation to a corporation means: an individual who o owns or controls, directly or indirectly, including through a trust or bearer share holding, not less than 10% of the issued share capital of the corporation; or o is, directly or indirectly, entitled to exercise or control the exercise of not less than 10% of the voting rights at general meetings of the corporation; or o exercises ultimate control over the management of the corporation; or if the corporation is acting on behalf of another person, means the other person. Beneficial owners Beneficial owner 1 Beneficial owner 2 Name HKID or Passport Number and issuing country Date of Birth / / / / Residential address Permanent address (if different to residential address) Are you a politically exposed person ( PEP )? A PEP is a person who has been entrusted with a prominent public function such as a head of state, senior politician, judicial or military official. A spouse, partner, child, parent, or close associate of such an individual is also considered to be a PEP. Yes No Yes No 6

7 Section 4 Data Privacy Taiping collects personal data in order to provide the customer with products and services in accordance with Taiping s Personal Information Collection Statement (provided to you with this Application Form) and Taiping s Privacy Policy Statement (available on request). Direct marketing The below options represent the customer s present choice of whether or not to receive direct marketing contact or information. This replaces any choice previously communicated to Taiping. Opt-in for use of personal data in direct marketing by Taiping Taiping intends to use the customer s personal data in direct marketing and cannot do so without its consent. If the customer wishes Taiping to use its personal data in direct marketing or wishes to receive direct marketing materials by certain channels, it should tick (" ) any of the following opt-in channel(s): ( address provided above) SMS (mobile phone number provided above) All channels (including , mail, SMS, phone) Opt-in for provision of our/my personal data to other persons for direct marketing Taiping may provide the customer s personal data to other persons for their use in direct marketing, whether or not such persons are members of Taiping s group. The customer should tick (" ) this box if it wishes Taiping to provide its personal data to any other persons for their use in direct marketing. Note: The above choice applies to the direct marketing of the classes of products, services and/or subjects, the kinds of data which may be used in direct marketing and the classes of persons to which data may be provided for them to use in direct marketing as set out in Taiping s Personal Information Collection Statement to customer in relation to Personal Data (Privacy) Ordinance (Cap 486) ( Personal Information Collection Statement ). Acknowledgement by the Customer The customer understands that it is not obligatory for the customer to allow the customer s information or personal data to be used or provided for direct marketing purposes and the customer may opt in or opt out for the use of its personal data by Taiping by ticking the relevant checkbox(es) below. The Customer has fully read, understood and confirmed the contents of and agreed to be bound by the terms and conditions of the Personal Information Collection Statement attached to this Application Form. The customer understands that the customer s above choice applies to the direct marketing of all the classes of products, services and/or subjects as set out in the Personal Information Collection Statement. Customer Signature (with company chop): Date : 7

8 Section 5 Customer s bank account Bank name Bank account number Account holder s name Section 6 Risk disclosure Taiping may provide customers with a separate risk disclosures notice, customer s attention should be specifically drawn to the risk disclosure document. Declaration by Licensed Staff The undersigned licensed staff, identified below, declares that: the customer has been provided with the relevant risk disclosure statement in the language of its choice (either English or Chinese); and the customer was invited to read the risk disclosure statement, to ask questions and take independent advice as it wishes; and I have orally read and explained the relevant risk disclosure statements to the customer in a language of the customer s choice on (date) at (time). I have invited the customer to obtain a copy of and read the risk disclosure statements, ask questions and take independent advice if the customer so wishes. Name of Licensed Staff : CE No. : Signed by Licensed Staff : Date : Acknowledgement by the Customer The customer acknowledges and confirms that the customer has read the relevant risk disclosure statements which were provided in a language of the customer s choice. The customer also acknowledges and confirms that the customer was invited to read the risk disclosure statements, ask questions, and take independent advice if the customer wishes. Customer Signature (with company chop): Date : 8

9 Section 7 Declaration and Agreement The undersigned (whose particulars are set out Section 1 of this Application Form) (the Customer ), agrees to open securities account(s) (the Account(s) ) with Taiping upon and subject to all the provisions of this Application Form and the terms and conditions together with the Schedules thereto (the Terms and Conditions ) applicable to the Account(s) that the Client applies to open. By signing this Application Form, the Customer acknowledges and agrees as follows: (a) The Customer confirms that the information provided in this Application Form is correct and complete and undertakes to notify Taiping immediately of any changes and Taiping is entitled to rely fully on such representations and information for all purposes; (b) The Customer authorises Taiping to verify the information referred to in (a) above from any source it may deem fit and agrees to provide whatever information, documents and certifications Taiping requires in order for it to do so; (c) The Customer represents and warrants that all information provided to Taiping by it (under this Application Form and existing forms provided to Taiping) is true and complete; (d) The contents of this Application Form and the Terms and Conditions have been fully explained to the Customer in a language which the Customer understands. The Customer has fully read, understood and confirmed, and agrees and accepts to be bound by all the provisions of this Application Form and the Terms and Conditions (as amended from time to time and including the policy of Taiping in relation to information of the Customer as contained in the Terms and Conditions) applicable to the account(s) that the Customer applies to open with Taiping. The Customer acknowledges and agrees that Taiping has provided it with the opportunity to consult its legal and other professional advisors before signing this Application Form; (e) The Customer has read, understood and acknowledged the Risk Disclosure Statement as provided to it with this Application Form and has been invited by Taiping to read the Risk Disclosure Statement, ask questions and take independent advice, if the customer wishes; and the customer agrees that the Risk Disclosure Statement forms part of the Securities Cash Account Agreement; the customer acknowledges and agrees the Securities Services Charges of Taiping (provided together with the Securities Cash Account Agreement) and agrees that charges are subject to amendment by Taiping from time to time; (f) The Customer represents and warrants that it has the Authorised Person[s] (as relevant) consent to provide their details to Taiping and undertakes to provide each Authorised Person with a copy of the Securities Cash Account Agreement including Taiping s Personal Information Collection Statement; (g) the Customer agrees to abide by the rules and regulations of the Stock Exchange of Hong Kong Limited, Hong Kong Securities Clearing Company Limited and/or any other regulatory body(ies) as amended from time to time governing the purchase and sale of securities quoted on the aforementioned stock exchanges and clearing system or any other stock exchanges or clearing systems; (h) Taiping reserves its rights to amend the Terms and Conditions and service charges from time to time. Such amendments shall be incorporated into the Terms and Conditions unless objected to in writing by the Customer within 14 days from the notice of Taiping; and (i) In the event that there is any inconsistency between the English version and the Chinese version of the Application Form and the Terms and Conditions, the English version shall prevail. 9

10 Each of the persons signing below represents and warrants that he/she is authorised to act for and on behalf of the Customer in entering into this Securities Cash Account Agreement together with the Application Form (Companies). Customer Signature (with company chop): Authorized signatory: Authorized signatory: Title: Date: Title: Date: *The undersigned hereby certifies the signing of this Application Form by the Customer; and the sighting of the identity document(s) of the authorized signatory(ies) of the Customer (such as its director(s) or ultimate beneficial owner(s)): Approved and accepted by Taiping Securities (HK) Co., Ltd: 10

11 SUPPORTING DOCUMENTATION The following materials must be provided in support of the application. Customer documentation Certificate of incorporation Please provide original or certified copy of the certificate of incorporation. Business registration document Please provide original or certified copy of the business registration certificate. Memorandum and articles of association Please provide original or certified copy of the memorandum and articles of association. Ownership chart Please provide an ownership chart showing the name of each entity in the customer s corporate structure, including all intermediate layers and the ultimate beneficial owners, the place of incorporation of each such entity, and ownership percentages at each level. Declaration attached to ownership chart Please provide a declaration signed by a director or company secretary of the customer certifying the accuracy and completeness of the ownership chart and describing the rationale behind the chosen corporate structure. Company incorporated in Hong Kong Companies Registry Search Report / Annual Return Please provide an original or certified copy of a search report / annual return from the Companies Registry in respect of the customer. Company incorporated overseas Certificate of incumbency and good standing (issued within the last 6 months) Please provide an original or certified copy of a certificate of incumbency or equivalent document issued by the company s registered agent in the place of incorporation, and a certificate of good standing issued by the companies registry or equivalent body of the place of incorporation of the customer. The document should confirm the following details: the customer is currently registered the customer has not been dissolved, wound up, suspended or struck off the registered office address of the customer the names of the current directors and shareholders of the customer the customer is in good standing Board resolution Please provide an original or certified copy of a board resolution of the customer approving the application. Proof of principal business address (if different to registered address) Proof of principal business address which issued within the last 3 months. 11

12 Proof of identity of beneficial owners Hong Kong permanent residents I am a Hong Kong permanent resident and have attached a certified copy of my Hong Kong identity card which confirms my details above. Non-Hong Kong permanent residents I am a non-hong Kong permanent resident and have attached the documents set out in one of the following options: Option 1: a certified copy of my passport or other valid travel document Option 2: a certified copy of my Hong Kong identity card and a certified copy of: o my international passport or other travel document; or o my current national (government or state issued) identity card bearing my photograph; or o a government or state-issued document confirming my nationality. Beneficial owner 1 Beneficial owner 2 Proof of address of beneficial owners Proof of residential address I have attached a certified copy of one of the documents listed below, which is no more than three months old, confirming my residential address. Proof of permanent address (if different to residential address) I have attached a certified copy of one of the documents listed below, which is no more than three months old, confirming my permanent address. Beneficial owner 1 Beneficial owner 2 Documents confirming address recent utility bill recent correspondence from a government department or agency statement issued by an authorized institution, licensed corporation or authorized insurer Note: There may be other options to confirm your address if you cannot provide one of the documents listed above. Please speak to your Taiping representative for more information. Additional information and/or document(s) might be required for some type(s) / form(s) of incorporation. 12

13 Who can certify identity documents for you? Only the following persons may certify a copy. Mandatory criteria Representative of a Hong Kongregulated entity A person licensed by or registered with the Securities and Futures Commission Lawyer Solicitor practising in Hong Kong who is a current member of The Law Society of Hong Kong Lawyer practising in an approved jurisdiction* Accountant Certified public accountant practising in Hong Kong who is a current member of the Hong Kong Institute of Certified Public Accountants Professional accountant practising in an approved jurisdiction* Chartered Secretary Chartered Secretary practising in Hong Kong who is a current member of the Hong Kong Institute of Chartered Secretaries Chartered Secretary practising in an approved jurisdiction* Notary public Notary public practising in an approved jurisdiction* Justice of the Peace Justice of the Peace appointed under section 3 of the Justices of the Peace Ordinance (Cap.510) * An approved jurisdiction means any one of the following members of the Financial Action Task Force: Argentina, Australia, Austria, Belgium, Brazil, Canada, People s Republic of China, Denmark, Finland, France, Germany, Greece, Iceland, India, Ireland, Italy, Japan, Republic of Korea, Luxembourg, Mexico, Kingdom of Netherlands, New Zealand, Norway, Portugal, Russian Federation, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States. The certifier must: (a) (b) (c) (d) sign and date the copy; print their name clearly in capitals underneath the signature; clearly indicate their position or capacity on the copy; and state that the copy is a true copy of the original (or words to similar effect). For example: I certify that this is a true copy of the original document that I have seen. Certifier s signature DD/MM/YYYY [FULL NAME OF CERTIFIER] [Certifier s position/capacity], [Jurisdiction], [Licence or registration #] 13

14 Document check list Company incorporated in Hong Kong Must provide certified true copy Certificate of incorporation Business registration document Memorandum and articles of association Declaration attached to ownership chart For official use only Company incorporated overseas Must provide certified true copy Certificate of incorporation Business registration document Memorandum and articles of association Declaration attached to ownership chart Companies Registry Search Report / latest Annual Return Board resolution Identity card / passport of all directors / authorized persons Address proof of all directors / authorized persons Identity card / passport of ultimate beneficiary Address proof of ultimate beneficiary W-8ben / W9 CRS Entity Self-Certification CRS Controlling Person Self-Certification (If necessary) Proof of principal business address (If applicable) Board resolution Identity card / passport of all directors / authorized persons Address proof of all directors / authorized persons Identity card / passport of ultimate beneficiary Address proof of ultimate beneficiary W-8ben / W9 Register of Directors Register of Members Certificate of incumbency (issued within 6 months) Certificate of good standing (issued within 6 months) CRS Entity Self-Certification CRS Controlling Person Self-Certification (If necessary) Proof of principal business address (If applicable) Document reviewed by Name of staff / Name of AE: Signature of staff / AE: Date: Customer information Customer number: Name of AE / AE code: Trading limit: Brokerage: Customer information approved by Name of staff: Signature of staff: Date: Account opening approved by Name of staff: Signature of staff: Date: Remarks: 14

15 Taiping Securities (HK) Co., Ltd China Insurance Group Bldg., 141, Des Voeux Road Central, Hong Kong Tel: Fax: Licensed Corporation of SFC (CE No. AAE494) & Participant of The Stock Exchange of Hongkong Ltd (the Stock Exchange ) Risk of securities trading Risk Disclosure Statement The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities. Risk of trading Growth Enterprise Market stocks Growth Enterprise Market (GEM) stocks involve a high investment risk. In particular, companies may list on GEM with neither a track record of profitability nor any obligation to forecast future profitability. GEM stocks may be very volatile and illiquid. You should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Current information on GEM stocks may only be found on the internet website operated by The Stock Exchange of Hong Kong Limited. GEM Companies are usually not required to issue paid announcements in gazetted newspapers. You should seek independent professional advice if you are uncertain of or have not understood any aspect of this risk disclosure statement or the nature and risks involved in trading of GEM stocks. Risks of client assets received or held outside Hong Kong Client assets received or held by the licensed or registered person outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Securities and Futures Ordinance (Cap.571) and the rules made thereunder. Consequently, such client assets may not enjoy the same protection as that conferred on client assets received or held in Hong Kong. Risk of providing an authority to repledge your securities collateral etc. There is risk if you provide the licensed or registered person with an authority that allows it to apply your securities or securities collateral pursuant to a securities borrowing and lending agreement, repledge your securities collateral for financial accommodation or deposit your securities collateral as collateral for the discharge and satisfaction of its settlement obligations and liabilities. If your securities or securities collateral are received or held by the licensed or registered person in Hong Kong, the above arrangement is allowed only if you consent in writing. Moreover, unless you are a professional investor, your authority must specify the period for which it is current and be limited to not more than 12 months. If you are a professional investor, these restrictions do not apply. Additionally, your authority may be deemed to be renewed (i.e. without your written consent) if the licensed or registered person issues you a reminder at least 14 days prior to the expiry of the authority, and you do not object to such deemed renewal before the expiry date of your then existing authority. You are not required by any law to sign these authorities. But an authority may be required by licensed or registered persons, for example, to facilitate margin lending to you or to allow your securities or securities collateral to be lent to or deposited as collateral with third parties. The licensed or registered person should explain to you the purposes for which one of these authorities is to be used. Version- May

16 If you sign one of these authorities and your securities or securities collateral are lent to or deposited with third parties, those third parties will have a lien or charge on your securities or securities collateral. Although the licensed or registered person is responsible to you for securities or securities collateral lent or deposited under your authority, a default by it could result in the loss of your securities or securities collateral. A cash account not involving securities borrowing and lending is available from most licensed or registered persons. If you do not require margin facilities or do not wish your securities or securities collateral to be lent or pledged, do not sign the above authorities and ask to open this type of cash account. Risk of providing an authority to hold mail or to direct mail to third parties If you provide the licensed or registered person with an authority to hold mail or to direct mail to third parties, it is important for you to promptly collect in person all contract notes and statements of your account and review them in detail to ensure that any anomalies or mistakes can be detected in a timely fashion. Risk of margin trading The risk of loss in financing a transaction by deposit of collateral is significant. You may sustain losses in excess of your cash and any other assets deposited as collateral with the licensed or registered person. Market conditions may make it impossible to execute contingent orders, such as "stop-loss" or "stop-limit" orders. You may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposits or interest payments are not made within the prescribed time, your collateral may be liquidated without your consent. Moreover, you will remain liable for any resulting deficit in your account and interest charged on your account. You should therefore carefully consider whether such a financing arrangement is suitable in light of your own financial position and investment objectives. Risk of trading Nasdaq-Amex securities at The Stock Exchange of Hong Kong Limited The securities under the Nasdaq-Amex Pilot Program ( PP ) are aimed at sophisticated investors. You should consult the licensed or registered person and become familiarised with the PP before trading in the PP securities. You should be aware that the PP securities are not regulated as a primary or secondary listing on the Main Board or the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited. Commission and other charges Before you begin to trade, you should obtain a clear explanation of all commission, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss. Risk of transactions in other jurisdictions Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk. Such markets may be subject to regulation which may offer different or diminished investor protection. Before you trade you should enquire about any rules relevant to your particular transactions. Your local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected. You should ask the firm with which you deal for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before you start to trade. Currency risks The profit or loss in transactions in foreign currency denominated contracts (whether they are traded in your own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency. Version- May

17 Risk of trading facilities Electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. Your ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearing house and/or participant firms. Such limits may vary: you should ask the firm with which you deal for details in this respect. Risk of electronic trading Trading on an electronic trading system may differ from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, you will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that your order is either not executed according to your instructions or is not executed at all. Risk of off-exchange transactions In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect offexchange transactions. The firm with which you deal may be acting as your counterparty to the transaction. It may be difficult or impossible to liquidate an existing position, to assess the value, to determine a fair price or to assess the exposure to risk. For these reasons, these transactions may involve increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory regime. Before you undertake such transactions, you should familiarize yourself with applicable rules and attendant risks. Risk associated with structured products Issuer default risk : In the event that a structured product issuer becomes insolvent and defaults on their listed securities, investors will be considered as unsecured creditors and will have no preferential claims to any assets held by the issuer. Investors should therefore pay close attention to the financial strength and credit worthiness of structured product issuers. Uncollateralised product risk: Uncollateralised structured products are not asset backed. In the event of issuer bankruptcy, investors can lose their entire investment. Investors should read the listing documents to determine if a product is uncollateralized Gearing risk: Structured products such as derivative warrants and callable bull/bear contracts (CBBCs) are leveraged and can change in value rapidly according to the gearing ratio relative to the underlying assets. Investors should be aware that the value of a structured product may fall to zero resulting in a total loss of the initial investment. Expiry considerations: Structured products have an expiry date after which the issue may become worthless. Investors should be aware of the expiry time horizon and choose a product with an appropriate lifespan for their trading strategy. Extraordinary price movements: The price of a structured product may not match its theoretical price due to outside influences such as market supply and demand factors. As a result, actual traded prices can be higher or lower than the theoretical price. Foreign exchange risk: Investors trading structured products with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate risk. Currency rate fluctuations can adversely affect the underlying asset value, also affecting the structured product price. Liquidity risk: The Exchange requires all structured product issuers to appoint a liquidity provider for each individual issue. The role of liquidity providers is to provide two way quotes to facilitate trading of their products. In the event that a liquidity provider defaults or ceases to fulfil its role, investors may not be able to buy or sell the product until a new liquidity provider has been assigned Version- May

18 Time decay risk: All things being equal, the value of a derivative warrant will decay over time as it approaches its expiry date. Derivative warrants should therefore not be viewed as long term investments. Volatility risk: Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility. Mandatory call risk: Investors trading CBBCs should be aware of their intraday knockout or mandatory call feature. A CBBC will cease trading when the underlying asset value equals the mandatory call price/level as stated in the listing documents. Investors will only be entitled to the residual value of the terminated CBBC as calculated by the product issuer in accordance with the listing documents. Investors should also note that the residual value can be zero. Funding costs: The issue price of a CBBC includes funding costs. Funding costs are gradually reduced over time as the CBBC moves towards expiry. The longer the duration of the CBBC, the higher the total funding costs. In the event that a CBBC is called, investors will lose the funding costs for the entire lifespan of the CBBC. The formula for calculating the funding costs are stated in the listing documents. Renminbi Trading Service and Related Risk Currency risk a non-mainland (including Hong Kong) investor who holds a local currency other than renminbi will be exposed to currency risk if he/she invests in a renminbi product. This is because renminbi is a restricted currency and subject to exchange controls, you may have to convert the local currency into renminbi when you invest in a renminbi product. When you redeem / sell your investment, you may also need to convert the renminbi received upon redemption / sale of your investment product into the local currency (even if redemptions / sale proceeds are paid in renminbi). During these processes, you will incur currency conversion costs and you will also be exposed to currency risk. In other words, even if the price of the renminbi product remains the same when you purchase it and when you redeem / sell it, you will still incur a loss when you convert the redemption / sale proceeds into local currency if renminbi has depreciated. Like any currency, the exchange rate of renminbi may rise or fall. Further, renminbi is subject to conversion restrictions and foreign exchange control mechanism Exchange rate risk and Daily Exchange Limit: Renminbi is currently not freely convertible and is subject to exchange controls and restrictions, the exchange rate of renminbi may rise or fall. When investing in listed renminbi-denominated securities, you should ensure that you have sufficient RMB to settle your trades. There may be restriction of trading Renminbi outside Mainland China. In case you do not have sufficient Renminbi funding to subscribe RMB products, we may assist you to convert other currencies to Renminbi, subject to availability of RMB funds in Hong Kong SAR. We may also apply additional charges on such services Interest rate risks: Central government has gradually liberalized the regulation of interest rates in recent years. Further liberalization may increase interest rate volatility. For Renminbi products which are, or may invest in, Renminbi debt instruments, such instruments are susceptible to interest rate fluctuations, which may adversely affect the return and performance of the Renminbi products. Liquidity risk: Renminbi products are also subject to liquidity risk as Renminbi products are a new type of product and there may not be regular trading or an active secondary market. Therefore you may not be able to sell your investment in the product on a timely basis, or you may have to sell the product at a deep discount to its value. Issuer / counterparty risk: Renminbi products are subject to the credit and insolvency risks of their issuers. You should consider carefully the creditworthiness of the issuers before investing. Furthermore, as a Renminbi product may invest in derivative instruments, counterparty risk may also arise as the default by the derivative issuers may adversely affect the performance of the Renminbi products and result in substantial losses. Investment / market risk: Like any investments, Renminbi products are subject to investment risk and may not be principal protected i.e. the assets that the products invest in or referenced to may fall as well as rise, resulting in gains or losses to the product. This means that you may suffer a loss even if Renminbi appreciates. Version- May

19 Possibility of not receiving Renminbi upon redemption: Even the product aims to deliver Renminbi, it may not be able to pay you in Renminbi if the product has to sell non-renminbi-denominated investments to meet your redemption / sale request, and encounters conversion restriction when converting the proceeds in non-renminbi currencies into Renminbi. On the other hand, even if the investments are denominated in Renminbi, there may not be sufficient Renminbi to satisfy the redemption / sale requests due to the repatriation or other controls on Renminbi. As a result, you may not receive Renminbi when you redeem / sell your investments. Underlying investments of a renminbi products may not be renminbi denominated: For renminbi products that do not have access to an investment quota to invest directly in mainland China, their available choice of renminbi denominated investments outside mainland China is limited. The return of the renminbi products may therefore be adversely affected. Also, a renminbi products may have to invest in non-renminbi assets. In this case, the products will be subject to the renminbi exchange rate fluctuations and bid/offer spreads in selling its non-renminbi assets to meet redemption requests and other capital requirements (e.g. settling operating expenses). Projected returns which are not guaranteed: For some Renminbi investment products, their return may not be guaranteed or may only be partly guaranteed. You should read carefully the statement of illustrative return attached to such products and in particular, the assumptions on which the illustrations are based, including, for example, any future bonus or dividend declaration. Long term commitment to investment products: For Renminbi products which involve a long period of investment, if you redeem your investment before the maturity date or during the lock-up period (if applicable), you may incur a significant loss of principal where the proceeds may be substantially lower than your invested amount. You may also suffer from early surrender / withdrawal fees and charges as well as the loss of returns (where applicable) as a result of redemption before the maturity date or during lock-up period. Risk of Exchange Traded Fund (ETF) ETF is a fund authorised by the Securities and Futures Commission (SFC) that is traded on an exchange. Its principal objective is to track, replicate or correspond to the performance of an underlying index. Market risks: An ETF is exposed to the economic, political, currency, legal and other risks of a specific sector or market related to the index and the market that it is tracking. Credit/Counterparty risk: Synthetic ETFs typically invest in over-the-counter derivatives issued by counterparties. Such a synthetic ETF may suffer losses potentially equal to the full value of the derivatives issued by the counterparty upon its default Tracking error: These include failure of the ETF's tracking strategy, the impact of fees and expenses, foreign exchange differences between the base currency or trading currency of an ETF and the currencies of the underlying investments, or corporate actions of the ETF's underlying securities. Trading at a discount or premium to NAV: Since the trading price of an ETF is typically determined by the supply and demand of the market, the ETF may trade at a price higher or lower than its NAV. Also, the reference index or market that an ETF tracks has restricted access, units in the ETF may not be created or redeemed freely and efficiently. Liquidity risk: Listing or trading on the Stock Exchange does not in and of itself guarantee that a liquid market exists for an ETF. Tax and other risks: Like all investments, an ETF may be subject to tax imposed by the local authorities in the market related to the index that it tracks, emerging market risks and risks in relation to the change of policy of the reference market. Acknowledgment [I/we have been provided with the relevant risk disclosure statement in the language of my/our choice (either English or Chinese)] Version- May

20 I/we have been invited to read the risk disclosure statement, to ask questions and take independent advice as I/we wish. Signed by customer: Date: Version- May