1. I/We acknowledge that the price of securities traded on the Growth Enterprise Market (“GEM”) of The Stock Exchange of Hong Kong Limited (the “Exchange”) can and does fluctuate, and any individual security may experience upwards or downwards movements, and may even become valueless. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling securities traded on GEM.  I/We also acknowledge that there may be risks in leaving securities in your safekeeping.  For example, if you are holding my/our securities and you become insolvent, I/we may experience significant delay in recovering the securities.  These are risks that I/we am/are prepared to accept.

2. I/We understand that GEM has been established as a market designed to accommodate companies to which a high investment risk may be attached. In particular, I/we understand that companies may list on GEM with neither a track record of profitability nor any obligation to forecast future profitability.  I/We appreciate that there may be risks arising out of the emerging nature of companies listed on GEM and the business sectors or countries in which the companies operate.

3. I/We am/are aware of the potential risks of investing in such companies and understand that I/we should make the decision to invest only after due and careful consideration. I/We understand the greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.

4. Given the emerging nature of companies listed on GEM, I/we understand there is a risk that securities traded on GEM may be susceptible to higher market volatility compared to securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM.

5. I/We further understand that the principal means of information dissemination on GEM is publication on the internet web site operated by the Exchange. Companies listed on GEM are not generally required to issue paid announcements in gazetted newspapers.  Accordingly, I/we acknowledge that I/we need to have access to up-to-date information on GEM-listed companies as published on the GEM web site.

6. I/We acknowledge that this risk disclosure statement does not purport to disclose all the risks and other significant aspects of GEM. I/We understand that I/we should undertake my/our own research and study on the trading of securities on GEM before commencing any trading activities.

7. I/We understand that I/we should seek independent professional advice if I/we am/are uncertain of or have not understood any aspect of this risk disclosure statement of the nature and risks involved in trading of securities on GEM.

8. I/We understand that the signing of this risk disclosure statement is a mandatory requirement of the Exchange Rules. I/We understand that you will not be able to effect my/our instructions to deal in securities on GEM if I/We have not been able to sign and confirm this statement.


Transaction conducted through the securities account may involve the following risks:

Risk of Investment
Investment involves risk, and the offering document should be read for further details.  (Where past performance is quoted) the past performance figures shown are not indicative of future performance.

Risk of Securities Trading
Transactions conducted through the securities account may involve high-risk investment instruments, Clients should prudently consider before making any investment decision.  The price of securities fluctuates, sometimes dramatically.  The price of securities 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 Warrants and Callable Bull/Bear Contracts (CBBCs) Trading
The price of the warrants and CBBCs may fall in value as rapidly as it may rise and investors may sustain a total loss of their investment.  Past performance of the underlying asset is not an indication of future performance.  Clients should ensure that they understand the nature of the warrants and CBBCs and carefully study the risk factors set out in the relevant listing documents of the warrants and CBBCs and, where necessary, seek independent professional advice.  Warrants that are not exercised will have no value upon expiry.  CBBCs have a mandatory call feature and, when the price of the underlying asset reaches the call price, will be early terminated immediately, in which case: (i) Category N CBBCs investors will not receive any cash payment; and (ii) Category R CBBCs investors may receive a cash payment called the Residual Value, which may be zero.

Risk of Exchange-Traded Fund (ETF) Trading
An ETF is meant to trace the performance of a specific market or sector.  Some ETFs may invest in over-the-counter derivatives issued by counterparties.  Thus when Clients invest in these ETFs, Clients will bear both the risks in the securities that make up the index and the credit risk of the issuers of derivative instruments that replicate the performance of those securities.  If the derivative counterparty defaults, these ETFs may suffer losses potentially equal to the full value of the derivatives issued by the counterparty.  Clients have to understand the investment and index replication strategy of the ETF.  Important information is provided in the offering documents.