Disclaimer
1. The rights in the financial market data, quotes, news, research or other information, including graphic images, provided in this website ("Information") are the properties of either Hantec Securities Company Limited, Hantec Futures Limited, Hantec Wealth Management Company Limited, Hantec Insurance Broker Company Limited and affiliated companies (collectively called "Hantec"), its information providers or its licensors and are protected by applicable copyright law. The Information may not be copied, transmitted, disseminated, sold, distributed, published, broadcasted, circulated, stored for subsequent use or commercially exploited in any manner without the prior written consent of Hantec.
2. While the Information have been obtained from sources believed to be reliable, Hantec, its information providers and its licensors do not represent, warrant or guarantee the accuracy, completeness, timeliness, reliability or suitability of the Information for any particular purpose. Hantec, its information providers and its licensors will have no tortious, contractual or any other liability to you and/or any third party arising in connection with the use of this website, or reliance on any information or services provided in this website. Hantec, its information providers and its licensors will under no circumstances be liable to you and/or any third party for any lost profits or lost opportunity, or any indirect, special, consequential, incidental or punitive damages whatsoever, even if Hantec, the information providers or the licensors have been advised of the possibility of such damages.
3. Hantec may discontinue or make changes in the information, products or services provided in this website at any time without prior notice to you.
4. This website contains no offer or solicitation of any security, product or service in any jurisdiction (including without limitation the US and the UK) where their offer or sale is not qualified or exempt from regulation or is prohibited by law. Also, not all securities, products or services provided in this website are available in all countries.
5. The information shown in this website is neither a recommendation, an offer, nor a solicitation for any investment product or service. Investment involves risk. You should carefully consider whether any investment product or service mentioned herein is appropriate for you in view of your personal circumstances including financial position, investment experience and objective. Past performance is no guide to future performance. Investors should refer to the individual product explanatory memorandum or offering document for further details and risks involved. The price of investment products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling investment products.
Terms and Conditions
Please read and understand (1) the General Terms and Conditions (2) the Personal Information Collection and Privacy Policy and (3) the Risk Disclosure Statement (collectively, the "Terms and Conditions") before using this website or any online services provided by this website.
By successfully accessing this website, you agree to comply with and be bound by the following terms and conditions. Hantec Securities Company Limited, Hantec Futures Limited, Hantec Wealth Management Company Limited, Hantec Insurance Broker Company Limited and affiliated companies (collectively called "Hantec") reserve the right to make changes from time to time without prior notice. When you use this website, you will be bound by the latest version of these terms and conditions. If you do not agree to these terms and conditions, please cease using this website immediately. In the event of any discrepancy between the English and Chinese versions of the following terms and conditions, the English version shall prevail.
(1) General Terms and Conditions
Information and Use
The information contained in this website should not be construed as an invitation, solicitation, invitation, advice or recommendation to buy, sell or otherwise deal in any investment vehicle or product. Such information is for general information only and should not be used as a basis for making any investment or business decisions. Hantec recommends that you seek independent professional advice where appropriate.
Use of the Website
The contents of this website are for the private reference of Hong Kong residents only. It may be illegal to download such information from other countries. Hantec accepts no liability if you violate any laws of your country of residence by downloading any information from this website.
If you leave this website through a link on this website and view content not provided by Hantec, you do so at your own risk. Hantec shall not be liable for any actual, alleged, consequential or punitive loss or damage arising from any delay, omission or omission in the provision of services, information or other content on these sites. Hantec makes no warranty or representation as to, and accepts no responsibility for, the accuracy, subject matter, quality or timeliness of any electronic content transmitted by any third party, including but not limited to the accuracy, subject matter, quality or timeliness of its electronic content.
No Guaranteed Commitment
The content of this website is not intended to provide users with advice on buying or selling any investment vehicle or product, or any financial, legal, accounting or tax advice, and therefore should not be relied upon. Any indicative quotation, disclosure or analysis is prepared based on assumptions and parameters made by the Company in good faith, but does not constitute a recommendation by the Company. While all information is provided by Hantec in good faith and believed to be from reliable sources, Hantec does not warrant the accuracy, completeness or reasonableness of any quotation, disclosure or analysis. Past performance is not a guarantee of future returns and Hantec makes no representation or guarantee of any future performance or returns. Hantec has not verified all information and does not warrant that it is accurate or complete for your intended purposes and should not be relied upon. Hantec undertakes no obligation to update the information or to correct any errors that subsequently appear. Opinions, estimates and other information contained on this website are subject to change or withdrawal without prior notice.
Intellectual Property Rights
Hantec owns the trademarks, trade names and logos displayed on this website, and are protected by copyright and intellectual property Laws. The information on this website may not be reproduced, distributed or published in any medium for any purpose without prior express written consent from Hantec. If you download any information or software from this site, you agree that you will not copy, modify, remove, or obscure any copyright or other notices or legends contained in any parts of such information.
Limitation of liability
If any failure or interruption of this website, or the acts or omissions of any other person, causes you to be unable to connect to or use the website or these materials, you will suffer any direct, special, indirect, consequential or consequential damages (including any damages caused by any third parties. The losses caused by the actions or negligence of the three parties, etc.), even if Hantec or any member has been informed of the possibility of such losses in advance, Hantec will not bear any responsibility.
Indemnity for breach of contract
If Hantec incurs or suffers any losses, expenses, claims, liabilities, and expenses (including all legal fees) due to your violation of these terms and conditions or use of this website or services, you will indemnify and exempt Hantec and its affiliated directors, employees and agents from liability.
Applicable Law and Jurisdiction
This website is protected by the laws of Hong Kong. You are governed by the laws of Hong Kong without regard to principles of conflict of laws, and Hantec also reserves the right to initiate civil or criminal proceedings in any jurisdiction that controls you or your assets. Hantec may take action in any jurisdiction of its choice and you agree to submit to the exclusive jurisdiction of the Hong Kong courts.
(2) Collection of Personal Data and Privacy Policy
The information you provide to Hantec via the Internet is not absolutely safe and reliable. Hantec shall not be responsible for any loss incurred by you if you transmit information to Hantec via the Internet, or if we transmit information to you via the Internet at your request.
Hantec will keep customer personal information absolutely confidential. However, when you submit your personal data, you must agree to use the data for the following purposes:
Any member of Hantec shares, cross-checks and transfers such personal data;
For any purpose in connection with or in connection with compliance with any law, regulation, court order or order of a regulatory authority, including providing any information requested by any such regulatory authority (without Hantec's prior legal opinion as to the legality of such request);
For other purposes relating to the business/dealings of Hantec or any of its members. In addition to the information provided by you, Hantec will not collect any other personal information to identify any visitor to our website.
(3) Risk Disclosure Statement
Investing involves a variety of risks, including market, exchange rate, volatility, liquidity, credit/counterparty, degradation assessment, regulatory and political factors. The risk of loss in securities, leveraged foreign exchange, futures, options and other derivatives trading can be substantial and exceed the value of cash and any other collateral assets held. Therefore, before making an investment decision, you should understand the risks, characteristics and limitations of investment products, and make an assessment based on your personal financial status, investment goals and risk tolerance or consult an independent professional investment consultant. For details of the risk disclosure, please refer to the <Risk Disclosure Statement> in this website.
Privacy Policy
Hantec Securities Company Limited, Hantec Futures Limited, Hantec Wealth Management Company Limited, Hantec Insurance Broker Company Limited and affiliated companies (collectively called "the Group") strictly abides by the personal data privacy regulations and other laws and regulations regarding website visitors and customer information. Please read the following before you send us any Personal Data.
The following information is brought to your attention in accordance with the Personal Data (Privacy) Ordinance (Cap.486 of the Laws of Hong Kong) (the “Ordinance”). Unless the context otherwise requires, words and phrases in this circular shall have the meaning given to them by the Ordinance.
Collection of Personal Data
1. From time to time, it is necessary for clients to supply the Group with data in connection with
(i) the opening, operation and continuation of accounts;
(ii) the application, obtaining and continuation of credit facilities; and
(iii) the provision of securities brokerage, nominee, investment advisory and other financial services.
2. Data may also be collected from clients in the ordinary course of continuation of business relationship with the clients.
3. At the same time, data may be collected from clients pursuant to laws, regulations, rules or codes binding on the Group, the Group’s associated or related companies, any directors, officers, employees, authorized representatives or advisers of the Group or its associated or related companies, and any such person as specified in Clause 7 below (the “User”). The User may or may not reside in Hong Kong.
4. Failure of clients to supply such data may result in the Group or the User being unable to provide services to the clients, to maintain business relationship with the clients and to meet its respective legal or regulatory requirements.
5. The Group and/or the User will keep the data relating to and/or collected from the clients confidential and will comply with all applicable data privacy laws, including, where applicable, the Ordinance.
Purposes of Use
6. User may use data relating to and/or collected from clients for the following purposes:
(i) the daily operation of the services and credit facilities provided to clients;
(ii) conducting credit checks;
(iii) assisting other financial institutions to conduct credit checks;
(iv) ensuring ongoing credit worthiness of clients;
(v) designing financial services, advice or related products for clients’ use;
(vi) marketing financial services or related products;
(vii) determining the amount of indebtedness owed to or by clients;(viii)collection of amount outstanding from clients and those providing security for clients’ obligations;
(ix) meeting the requirements to make disclosure under the requirements of any laws, regulations, rules, codes binding on the User; and
(x) other purposes ancillary or relating thereto.
7. The Group may provide data relating to and/or collected from clients to the following persons within or outside Hong Kong to the extent permitted by law:
(i) any agent, contractor or third party service provider who provides sales, distribution, advisory, administrative, telecommunication, computer, payment or securities clearing, printing or other services to the Group in connection with the operation of its business; any other person under a duty of confidentiality to the Group;
(ii) any financial institution with which the client has or proposes to have dealings;
(iii) any actual or proposed assignee of the Group or participant or sub-participant or transferee of the Group’s rights in respect of the client;
(iv) any other person when the Group is compelled to make disclosure to such person under the requirements of any laws or regulations binding on the Group;
(v) any person with the client’s express or implied consent;
(vi) any person where in the Group’s interest requires disclosure; and
(vii) any person where in the public interest requires disclosure.
Use of Data in Direct Marketing
8. The Group intends to use personal data collected from clients for direct marketing carried out by the Group. The Group also intends to transfer such personal data to Users for their use in such direct marketing of financial services and products. The intended kinds of personal data to be used and the intended classes of marketing subjects are specified below.
However, the Group may not use the personal data collected from the clients unless permitted by the Ordinance or the Group has received the clients’ consent.
9. For the above direct marketing use, the Group intends to:
(i) use the client’s name, contact information and demographic information; and
(ii) market or promote the investment products or financial services of the Group or the User.
10. The client can always opt-out free-of-charge by contacting the Group’s Data Protection Officer if the client no longer wishes any of the client’s personal data to be used in any of the described direct marketing purposes.
11. In the course of performing its duties, the Group or the User may, as permitted by law, match, compare, transfer or exchange any personal data provided by the client, or hereafter obtained from the client, for these or any other purposes of the Group or the User, with data held by government bodies, other regulatory authorities, corporations, organisations or individuals in Hong Kong or overseas for the purpose of verifying those data.
12. The Group may receive remuneration and/or other benefits or compensation in return for transferring or making available personal data of the clients to the User. Such remuneration, compensation or benefits may be calculated based in whole or in part on the nature and extent of the services or facilities that the Group may provide to the clients from time to time or the size, nature or frequency of transactions that the clients may enter into, or such other factors as the Group may agree with such party.
Rights of Access and Correction
13. Under and in accordance with the terms of the Ordinance, any individual:
(i) has the right to check whether the Group holds data about him/her and the right of access to such data;
(ii) has the right to require the Group to correct any data relating to him/her which is inaccurate;
(iii) has the right to ascertain the Group’s policies and practices in relation to data and to be informed of the kind of personal data held by the Group;
(iv) has the right to request the Group to cease using the data for direct marketing purposes or transferring the data to other persons for such purposes and to notify any persons to whom the Group has transferred such data to cease any such use.
14. In accordance with the terms of the Ordinance, the Group has the right to charge a reasonable fee for the processing of any data access or correction request.
15. The person to whom requests for access to data or correction of data or for information regarding policies and practices and kinds of data held are to be sent is as follows:
The Group Data Protection Officer Hantec Securities Company Limited 12/F, South China Building
1-3 Wyndham Street, Central, HK
IMPORTANT
The content of this site may be updated from time to time by the Group. By accessing this site and any of its pages you agree to the terms and conditions set out above. If you do not agree with this Privacy Policy, you must not access or otherwise use this site or any of its contents. If there is any inconsistency between the English and Chinese versions of this Privacy Policy, the English version shall prevail.
Risk Disclosure
Before making an investment decision, investors should carefully consider whether the investment product/service is suitable for their financial situation, investment objectives and experience, risk tolerance, and other relevant circumstances. They should also understand the relevant risks involved in the investment product/service (see applicable offering documents).
(1) General risk
Risks of Securities Trading
Security prices can sometimes be very volatile. The price of securities can go up as well as down, and even become worthless. Buying and selling securities may not necessarily result in profits, but may incur losses.
Risks of buying and selling GEM shares
GEM shares involve high investment risks. In particular, such companies can list on GEM without having a profitable track record and without forecasting future profitability. GEM Shares can be very volatile and illiquid. You should make such investment decisions only after due and careful consideration. The riskier nature and other characteristics of the GEM market mean that it is a market more suitable for professional and other sophisticated investors. Currently information on GEM stocks can only be found on the Internet site operated by The Stock Exchange of Hong Kong Limited. Companies listed on GEM are generally not required to publish paid announcements in gazetted newspapers. If you are unclear about the content of this risk disclosure statement or the nature of the GEM market and the risks involved in trading shares on the GEM, you should seek independent professional advice.
Risk of Client Assets Received or Held Outside Hong Kong
Client assets received or held by a licensed or registered person outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction. These laws and regulations may differ from the Securities and Futures Ordinance (Cap. 571) and the rules made thereunder. Accordingly, such client assets will likely not enjoy the same protections as are accorded to client assets received or held in Hong Kong.
The risk of providing a power of attorney to re-pledge your securities collateral, etc.
Provide a licensed or registered person with an authorization to use your securities or securities collateral under a securities lending agreement, to re-pledge your securities collateral for financial accommodation, or to deposit your securities collateral There are certain risks as the collateral used to perform and pay off its delivery obligations and debts. If your securities or securities collateral are received or held in Hong Kong by a licensed or registered person, the above arrangement is only valid if you have given your written consent to it. Also, unless you are a professional investor, your power of attorney must specify an expiry date which cannot exceed 12 months. If you are a professional investor, the restrictions do not apply. In addition, if your licensed or registered person gives you a reminder that the relevant authorization will be deemed to have been renewed at least 14 days before the expiry of the relevant authorization, and you are not satisfied with the relevant authorization in this way before the expiry of the relevant authorization Authorization Renewal No objection, your authorization will be deemed renewed without your written consent. There is currently no legal requirement for you to sign these powers of attorney. However, a licensed or registered person may require a power of attorney in order, for example, to provide you with a margin loan or to be permitted to lend or deposit your securities or securities collateral to or as collateral with a third party. The licensed or registered person should explain to you for what purpose the power of attorney will be used.
Risks of Margin Trading
The risk of loss in financing a transaction by depositing collateral can be substantial. You may suffer losses in excess of your cash and any other assets deposited as security with the relevant licensed or registered person. Market conditions may make it impossible to execute alternate orders, such as "stop loss" or "limit price" orders. You may be required to deposit additional margin amounts or pay interest at short notice. If you fail to pay the required margin amount or interest within the specified time, your collateral may be sold without your consent. In addition, you will be responsible for any resulting shortfalls in your account and interest charges. You should therefore carefully consider whether this financing arrangement is suitable for you in light of your own financial situation and investment objectives.
If you sign an authorization 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 such licensed or registered person is liable to you for securities or securities collateral lent or deposited under your authority, a default by such licensed or registered person may result in you losing your Securities or Securities Collateral. Most licensed or registered persons offer cash accounts that do not involve securities borrowing and lending. If you do not need to use margin loans, or do not want your own securities or securities collateral to be lent or pledged, please do not sign the above authorization form and open such cash accounts upon request.
Markets in other jurisdictions
Trading in other jurisdictions, including markets that are formally linked to the local market, may involve additional risks. Depending on the regulations in these markets, the level of protection enjoyed by investors may vary, or may even be reduced. Before entering into a transaction, you should find out all the rules governing the transaction you are about to enter into. The regulator in your own jurisdiction will not be able to force the regulator or market in the jurisdiction where you have executed the transaction to implement the relevant rules. For this reason, you should check with the relevant firm what remedies are available in your own and other jurisdictions and details thereof before entering into a transaction.
Currency Risk
The profit or loss incurred by the sale and purchase of contracts denominated in foreign currencies (whether the transaction is conducted in your own jurisdiction or elsewhere) will be affected by the exchange rate when it is necessary to convert the unit currency of the contract into another currency The impact of fluctuations.
Trading Facility
Electronic trading facilities are computerized systems for order transfer, execution, matching, registration or transaction settlement. However, all facilities and systems are subject to temporary interruption or failure, and your compensation for this may be subject to the liability imposed by the system provider, market, clearing company and/or participant firm limit. As these limitations of liability may vary, you should check with the firm with whom you deal for details in this regard.
Electronic Transaction
Trading through one electronic trading system may be different from trading through other electronic trading systems. If you trade through an electronic trading system, you bear the risks posed by the system, including the risk that the system's hardware or software may fail. System failure may result in your transaction instructions not being executed according to the instructions, or even not being executed at all.
(2) Risks related to derivatives
Risks of futures and options trading
Futures trading is very risky. Since the amount of the futures opening margin is relatively lower than the value of the futures contract itself, it can play a "leverage" role in futures trading. Small fluctuations in the market can also have a large proportion of the money you put in or will need to put in. So, for you, this kind of leverage can be a mixed blessing. As a result, you may lose all initial deposits and additional amounts deposited with the relevant firm to maintain your position. If the purchased options expire worthless, you will lose all of your investment, including all premiums and transaction costs. If you are contemplating purchasing extreme out-of-the-money options, be aware that the chances of you being able to profit from such options are remote. Selling ("sell" or "sell") options generally carries much higher risk than buying options. Although the seller can get a fixed amount of option premium, he may also suffer a loss that is much higher than the option premium. If the market reverses, option sellers will have to put in additional margin to cover their positions.
Risks of Trading Structured Products
Prices of structured products can rise and fall rapidly and investors should be prepared for the possibility of serious or total loss of their investment. In the case of listed structured products, the issuer of the structured product may at times be the only party offering buy and sell quotes on the relevant stock exchange. Investors should ensure that they understand the nature and risks of structured products.
Risks of Trading Callable Bull/Bear Contracts ("CBBCs")
CBBCs have a fixed maturity date and closely track the performance of underlying assets such as stocks, indices, commodities and currencies. CBBCs are divided into bull contracts and bear contracts. Customers can choose to buy bull contracts or bear contracts if they are optimistic or bearish about the relevant assets. When the underlying asset price reaches the early redemption price, the issuer will call back the relevant CBBC. After the CBBC is called, the CBBC cannot be resumed again. Even if the price of the underlying asset rebounds to a favorable level, investors will not profit from it. Any transactions executed after this mandatory early redemption event will not be recognized and will be cancelled. Clients should note that CBBCs are complex and leveraged investments and may not be suitable for all investors. The leverage of CBBCs can amplify potential returns as well as potential losses. In the worst case, the client may lose the entire principal amount invested. When the trading of CBBC is close to the call price, clients should pay more attention. Even if the CBBC has a liquidity provider, investors are not guaranteed to be able to buy or sell the CBBC at their target price at any time according to their wishes.
Risks of Exchange Traded Funds (“ETFs”)
ETFs are passively managed, open-end funds. All ETFs listed on the Hong Kong Stock Exchange are collective investment schemes authorized by the SFC. ETFs are mainly used to track the performance of certain indexes, market sectors or asset groups (such as stocks, bonds or commodities). Exchange-traded fund managers can use different strategies to achieve their goals, but they usually cannot explore defensive strategies as appropriate in a falling market . ETFs may have tracking error (i.e. the performance of the ETF is out of line with the performance of the underlying index/asset) which may be due to factors such as simulation strategy failures, exchange rates, fees and expenses. Investors must be prepared to suffer losses due to fluctuations in the underlying index/asset.
If the ETF replicates the performance of the relevant index/asset by buying derivatives (i.e. synthetic ETF) or using total return swaps (Total return swaps), in addition to bearing the risk of the relevant index/asset, investors must also bear the risk of issuing relevant derivatives The instrument's own credit risk to the counterparty. Such synthetic ETFs may suffer losses up to the full value of the derivatives due to the default or failure of the counterparty to meet its contractual commitments. In addition, investors should also consider the potential knock-on effects and concentration risks related to derivative issuers (for example, since derivative issuers are mainly international financial institutions, if one of the synthetic ETF's derivative counterparties fails, the could have a "knock-on" effect on the synthetic ETF's other derivative counterparties). Some synthetic ETFs have collateral to reduce counterparty risk, but there is still a risk that when the collateral of the synthetic ETF is realized, the market value of the collateral may have dropped significantly. If there is no active secondary market for the derivative instruments involved in the synthetic ETF, the liquidity risk will be higher; and the wide spread between the bid and offer of the derivative instruments will also lead to losses. Investors are subject to political, economic, currency and other risks associated with the underlying index/assets of the ETF. If the index/asset tracked by the ETF imposes restrictions on investor participation, the effectiveness of the mechanism for creating or redeeming units to align the price of the ETF with its asset value may be compromised, causing the price of the ETF to fluctuate relative to its NAV At a premium or discount, an ETF may trade above or below its net asset value. Investors may suffer losses if they buy the ETF at a premium, or if they sell the ETF when the market price is at a discount to its net asset value. Trading ETFs is subject to liquidity risk. Although an ETF may have one or more market makers, this does not ensure active trading. Investors may not be able to buy or sell ETFs if a market maker defaults or ceases to perform its duties.
You should note that there is no guarantee that an ETF will fully mirror its underlying index/asset and that an ETF may also hold non-asset investments. ETF fund managers' strategies and the execution of such strategies may not be able to generate expected returns due to certain limitations. The Manager also has absolute discretion as to whether or not to exercise the rights of unitholders of the securities comprising the ETF.
Creation and redemption of ETF units can generally only be done through Participating Dealers. Participating Securities Firms are unable to create or redeem during, among other things, restrictions or suspensions of trading on the relevant exchange, disruptions to the settlement or delivery of securities in the settlement system, or non-compilation or publication of the underlying index/asset Back to ETF fund units. In addition, since the number of participating securities dealers is limited at any time, investors must bear the risk that they may not be able to freely create or redeem fund units at any time.
During the suspension of trading of fund units, investors cannot buy or sell fund units on relevant exchanges. Trading in Units may be suspended by the Exchange at any time it decides to protect investors in the interest of a fair and orderly market. If trading in Units is suspended, subscription and redemption of Units will also be suspended. The underlying index/asset price of the ETF may fluctuate. The composition and weighting of the underlying index/asset may change and the price of the ETF may rise or fall as a result of such changes. Investing in an ETF will generally reflect changes in the composition of its underlying index/asset from time to time and may not maintain the composition at the time you invest in the ETF, but there is no guarantee that a particular ETF will accurately reflect the underlying index/asset at any time ingredients. The Index Provider is under no obligation to consider the needs of the ETF or investors in determining, compiling or calculating the relevant Underlying Index. The index provider may change or revise the calculation and compilation method and basis of each underlying index, as well as any formulas, constituent companies and coefficient programs at any time without prior notice. Therefore, there is no guarantee that the actions of the index provider will not harm the interests of the relevant ETF, the manager or investors. ETF fund managers are generally required to obtain a license from each index provider to create ETFs based on the relevant underlying index. The relevant ETF may also be terminated if the relevant license agreement is terminated, or if the relevant underlying index is no longer compiled or published. In addition, the Regulator reserves the right to revoke the authorization granted to the ETF or to impose conditions it deems appropriate, such revocation of authorization would make it illegal, impracticable or imprudent to continue operating the ETF. You should be aware of the exchange rate risk that the underlying assets of the ETF may be denominated in a currency other than the ETF itself. Changes in exchange rates can adversely affect the price of the underlying asset or ETF.
Risks of Exchange Traded Notes (“ETNs”)
ETNs are unsecured, unsubordinated debt securities issued by underwriting banks designed to provide investors with returns across market benchmarks. Returns on ETNs are typically linked to the performance of a market benchmark or strategy, net of applicable fees. Like other debt securities, ETNs have a maturity date and are backed only by the credit of the issuer. Investors can trade ETNs through an exchange or receive a cash payment at a predetermined maturity date, or have the opportunity to early redeem ETNs directly with the issuer (less applicable fees) depending on the performance of the benchmark index. However, investors may be subject to the early redemption conditions of the ETN when redemption, such as the minimum redemption amount.
There is no guarantee that investors will get back their principal investment or any return on their investment on the maturity date or upon early repurchase by the issuer. For ETNs, positive months may not be able to offset some of the most negative monthly performances. The ETN issuer has the right to redeem the ETN at the repurchase value at any time. If at any time the buyback value of ETN is zero, the investor's investment becomes worthless. ETN may have insufficient liquidity, and investors are not guaranteed to be able to buy and sell at the target price at any time according to their wishes.
Although both ETFs and ETNs have the characteristics of tracking benchmark indexes, ETNs are debt securities and do not actually own any assets they track. What they have is the promise of the issuer to distribute to investors the return reflected in the theoretical benchmark index . ETNs offer limited portfolio diversification and investors are subject to concentration risk in specific indices and index components. Given that ETNs are unsecured debt instruments, if the ETN issuer defaults or goes bankrupt, the maximum potential loss could be 100% of the investment and no profit. A downgrade in the issuer's credit rating can cause the value of an ETN to decline even if there is no change in the underlying index being tracked. Investors buying and selling ETNs are therefore directly exposed to the credit risk of the issuer and have only an unsecured bankruptcy claim if the issuer declares bankruptcy. The principal amount is net of periodic investor fees or any applicable charges which could adversely affect returns. You should be aware of the exchange rate risk that the underlying assets of the ETN may be denominated in a currency other than the ETN itself. Changes in exchange rates can adversely affect your investment. Individual ETNs may be leveraged, and the value of an ETN can change rapidly depending on its leverage ratio to the underlying asset. You should be aware that the value of ETNs may drop to zero and you may lose all of your principal investment.
Risks of Collective Investment Schemes
Collective investment schemes may invest broadly (up to 100%) in financial derivatives, fixed income securities and/or structured products (including but not limited to credit default swaps, sub-investment grade debt, mortgage-backed securities and other asset-backed securities) , and involves different risks (including but not limited to counterparty risk, liquidity risk, credit risk and market risk). Some of the reasons why collective investment schemes may use derivative trading strategies that may incur losses include, but are not limited to: volatile market conditions, imperfect correlations between derivatives and the movements of the securities on which their prices depend, illiquidity in the market, and Risk of Default.
Risks of Warrant Trading
The price of warrants may go down as well as up and the holders of the warrants may lose all their investment. Warrants are likely to decrease in value over time. Therefore, warrants should not be regarded as long-term investment products. The issuer may have the right to adjust the terms and conditions of the warrants following the occurrence of certain events (including but not limited to rights issues, bonus issues or cash distributions, share subdivisions or mergers of related companies and restructuring of related companies). Any adjustment, or any decision not to adjust, could adversely affect the value of the Warrants.
Although the price of a warrant represents a fraction of the price of the underlying shares, the value of the warrant is not necessarily fully linked to changes in the level of the underlying index and may be affected by the time remaining until the warrant expires. Unlike stocks, warrants have a limited investment period and will expire on the expiry date. In the worst case, the warrants may expire worthless. If trading in the underlying shares is suspended on the exchange, trading in the warrants will also be suspended for the same period. The warrants will be terminated early in the event of the liquidation of the underlying company. Therefore, warrants are only suitable for experienced investors who are willing to bear the risk of losing all their investments. If you purchase warrants, you are relying on the reputation of the issuer and the warrants do not confer rights over the companies comprising any underlying index. You should note that rating agencies generally charge a fee to the rated company. In assessing an issuer's creditworthiness, you should not rely solely on the issuer's or company's credit ratings because: (i) credit ratings are not recommendations to buy, sell or hold warrants; (ii) corporate ratings may involve market competition, and new Factors that are difficult to quantify such as product and market success and management capabilities; (iii) High credit rating does not necessarily mean low risk. The impact of various risk factors on the value of warrants cannot be estimated.
Liquidity providers may be the only market participants for warrants. Warrants may not have a secondary market or the secondary market may be limited, making it difficult for you to realize the value of the warrants before their expiry.
Risks of Equity Linked Notes
Equity-linked notes are a combination of notes/deposits and options whose returns are based on the price performance of the underlying asset. Its maximum return is usually limited to a pre-determined amount. If the price of the underlying asset moves materially contrary to the Client's expectations, you may lose all of your principal investment. Most ELIs are not low-risk products. You are exposed to the issuer's credit risk, the return of which depends largely on the future movement of the underlying asset price. Equity Linked Notes are structured products that involve derivatives. Its maximum returns are capped, but its potential losses can be significant. It is extremely important that you read all relevant offering documents to understand the features and risks of ELIs before deciding to invest.
Risks of Renminbi-denominated Securities
RMB securities are subject to exchange rate fluctuations which may create opportunities or risks. If you convert RMB into Hong Kong dollars or other foreign currencies, you may suffer losses due to fluctuations in the RMB exchange rate. RMB is currently not fully convertible and conversion of RMB through banks is subject to daily quotas and other restrictions that may apply from time to time. You are reminded of the restrictions and changes in the relevant redemption applicable from time to time. If the amount you need to convert into RMB exceeds the daily limit, you must reserve time for the conversion. Any conversion of Renminbi in relation to Renminbi securities transactions shown on the statement and contract note is based on the prevailing exchange rate for that currency as quoted by the Exchange at 11:00 am on the relevant trading day or at such other time as the Exchange may specify from time to time. However, the RMB exchange actually performed on the settlement or other exchange day will be carried out by the company as the principal at the exchange rate determined by the prevailing exchange rate in the market at that time.
RMB securities will be traded and settled in RMB. If the money you provide for settlement is in a currency other than RMB, the company will, as the principal, convert the settlement amount into RMB at the prevailing exchange rate in the market at the time determined by the company. If you wish to receive RMB funds (such as sales proceeds and dividends) through the bank, you should open a RMB bank account for settlement. All transaction-related fees (including stamp duty, SFC transaction levy and exchange transaction fee) will be paid by the company on your behalf in Hong Kong dollars to the Inland Revenue Department, SFC and the exchange (as the case may be). In the RMB settlement amount, the company will convert the amount equivalent to transaction-related fees into Hong Kong dollars for settlement. Any gains or losses arising from foreign currency conversion in connection with transaction fees shall be the responsibility of the Company (and not the Client). You are not entitled to any claim for any gain arising from such currency conversion.
Risks of Rights Interests
Investors should pay attention to the relevant deadlines and other timetables if they wish to exercise and trade rights issues. Unexercised rights rights will have no value at maturity. However, if the investor decides not to exercise the rights issue, no action is required unless the investor intends to transfer this right in the market. If you want to resell the rights issue rights, you should note that there is a designated trading period during the subscription period, after which the rights issues rights rights will become worthless. If the investor decides to give up the right to issue rights, his shareholding ratio will be diluted due to the company's issuance of new shares.
Risks of investing in U.S. exchange-listed or over-the-counter securities or U.S. derivatives
Before you invest in any securities or securities-like instruments that are regulated by the laws of the United States, you should first understand the US regulations applicable to such transactions. U.S. law generally applies to U.S. market transactions, regardless of whether the laws of the client's country also apply. Many (but not all) stocks, bonds and options are listed and traded on American stock exchanges. Nasdaq, which used to be an over-the-counter market between dealers, has also become a US exchange. For stocks, bonds and options listed on an exchange, each exchange issues regulations that supplement the SEC's regulations to protect individuals and institutions that trade securities on that exchange. Traders can continue to trade off-exchange-listed or non-exchange-listed instruments. Securities that are not listed on an exchange may be traded through off-exchange electronic trading boards or through inter-dealer pink price lists that contain quotes from proxy (not bona fide) dealers. These trading facilities are set up outside Nasdaq. Security options are governed by the regulations of the U.S. Securities and Exchange Commission and the stock exchange on which the options are listed. Futures contracts or options on commodities such as wheat or gold are governed by the regulations of the U.S. Commodity Futures Trading Commission. Commercial options such as real estate options are not subject to SEC or CFTC rules. Whether you intend to invest in securities listed on a U.S. exchange, over-the-counter securities or derivatives (such as options or futures), clients should be aware of the relevant regulations governing the market in which they intend to trade. Investing in derivatives that do not require listing on an exchange tends to increase risk and the nature of the derivatives market tends to further increase risk.
Market makers on off-exchange electronic trading boards cannot use electronic media to communicate with other dealers to execute trades. They must communicate with the market manually, using standard telephone lines to communicate with other traders to execute trades, which can cause delays in communicating with the market. If the trading volume increases at the same time, it may lead to an increase in the volatility of securities prices on the off-exchange electronic trading board and a delay in execution time. Customers should be more cautious when placing orders in the market, and fully understand the risks of trading on foreign electronic trading boards. Market data such as quotes, volume and market size may or may not be as current as expected by NASDAQ or listed securities. Because the number of market makers participating in the over-the-counter securities market may be small, the liquidity of the securities may be significantly lower than that of securities listed on the market. As a result, your instructions may only be partially executed, or even not executed at all. In addition, the price received for a market order may differ significantly from the price quoted when the order was entered. When the number of shares in a security is less traded, this can lead to an increase in the ask/bid gap and cause price volatility. In some cases, it may not be possible to close out a position for OTC securities within a reasonable time. Issuers of OTC securities have no obligation to provide information to investors, maintain registration with the Securities and Exchange Commission or provide periodic reports to investors.
Default risk and counterparty risk
All products carry default risk and/or counterparty risk. Default risk is the issuer's failure to make payments in accordance with the agreement. In the event of an economic downturn, issuers may not be able to borrow successfully to continue operations or repay old debts. Credit ratings are the most commonly used tool for assessing the default risk of structured products. Credit ratings represent the opinion of credit rating agencies over a defined period of time, and credit ratings are often adjusted in response to changes in an issuer's financial position or market conditions.
Counterparty risk refers to the inability of counterparties to meet their financial contractual obligations. Although the ratings of credit ratings have a certain degree of reliability, investors should not only refer to the issuer's credit ratings, but also carefully pay attention to whether the structure of the product itself involves derivatives, so as to avoid losses.
General key risks associated with exchange traded derivative products (including but not limited to those listed below)
Issuer Default Risk
In the event that an issuer of an exchange-traded derivative product becomes insolvent and fails to meet its obligations with respect to the products issued, investors are treated only as unsecured creditors and have no priority claim on any of the issuer's assets. Therefore, investors should pay special attention to the financial strength and creditworthiness of issuers of exchange-traded derivative products. Since exchange-traded derivatives are not backed by assets, investors may lose their entire investment if the issuer goes bankrupt.
Leverage risk
Exchange-traded derivative products such as derivative warrants and callable bull/bear contracts are leveraged products whose value can change rapidly according to their leverage ratio relative to the underlying assets. Investors should be aware that the value of exchange-traded derivative products can drop to zero, resulting in the loss of the original investment funds.
Validity period
Most exchange-traded derivative products have an expiry date, after which the product becomes worthless. Investors should pay attention to the expiration time of the product and ensure that the remaining validity period of the selected product can match their trading strategy.
Abnormal price movement
The price of an exchange-traded derivative product may differ from its theoretical price due to external factors (such as market supply and demand). Therefore, the actual transaction price may be higher or lower than its theoretical price.
