Enhanced Securities Limited

Enhanced Securities Limited (“ESL”), a wholly owned subsidiary of G-Resources Group Limited (HKEX: 1051), was established in 2011. ESL is an Exchange Participant of the Hong Kong Stock Exchange and an SFC approved Licensed Corporation (SFC ID: AWP684). We are licensed with the SFC to carry out Dealing in and Advising on Securities (Type 1 & 4), Dealing in Futures Contracts (Type 2), Advising on Corporate Finance (Type 6) and Asset Management (Type 9). With our experienced management team and the financial resources support from our holding company, we offer our clients quality, practical and reliable financial / securities trading services along with a comprehensive and secured online securities trading platform. ESL can also provide margin financing to our clients to meet their needs.

Account Opening

Individual / Joint Account


			Download
Agreement for Individual / Joint Account (Full Set)
Agreement for Individual / Joint Account (Agreement Only)
Account Opening Document Check List
Client Agreement Revision arising from a Change of Code of Conduct by the Securities and Futures Commission
CRS - Self-Certification Form (Individual)
FATCA Identity Declaration Form
W-8BEN Form
Securities Settlement Instruction ("SI") or Investor Settlement Instruction ("ISI") under CCASS
Notice and Acknowledgement of Personal Data (Privacy) Policy
SSE and SZSE Account Application Form
Supplementary terms and Conditions and Risk Disclosures of the Client Agreement – Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect
Personal Information Collection Statement concerning Northbound China Connect Orders
Securities Commission and Service Charges Schedule (Hong Kong Market)
Securities Commission and Service Charges Schedule (A-Share Market)



Document Required for Opening of Account by Individual / Joint

	Copy of Hong Kong Permanent ID / Passport of each individual / joint account holder;
	Address Proof (latest THREE months: utilities bill or bank statement, etc.);
	Financial Status Proof (for students or unemployed persons);
		[1]	Copy of Bank Statement or Bank Book (the front page and the latest updated page)
		[2]	Other Accepted Valid Document
	Name Card, if any;
	Employer Consent Letter (if applicable)

Corporate Account


			Download
Agreement for Corporate Account (Full Set)
Agreement for Corporate Account (Agreement Only)
Account Opening Document Check List
Client Agreement Revision arising from a Change of Code of Conduct by the Securities and Futures Commission
CRS - Self-Certification Form (Entity)
CRS - Self-Certification Form (Controlling Person)
FATCA Identity Declaration Form
W-8IMY Form
Securities Settlement Instruction ("SI") or Investor Settlement Instruction ("ISI") under CCASS
Notice and Acknowledgement of Personal Data (Privacy) Policy
SSE and SZSE Account Application Form
Supplementary terms and Conditions and Risk Disclosures of the Client Agreement – Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect
Personal Information Collection Statement concerning Northbound China Connect Orders
Securities Commission and Service Charges Schedule (Hong Kong Market)
Securities Commission and Service Charges Schedule (A-Share Market)



Document Required for Opening of Account by Corporate

	Copy of Hong Kong Permanent ID / Passport of principal shareholders / directors / authorized signatories / beneficial owners of the Company;
	Address Proof (latest THREE months: utilities bill or bank statement, etc.);
	Principal business address proof;
	The board minutes of the Company approving the opening of the account substantially in the form attached;
	Copy of Certificate of Incorporation of the Company;
	Copy of Business Registration Certificate of the Company;
	Articles of Association of the Company and amending resolutions (if any);
	Latest Annual Return;
	Latest Audited Financial Statements;
	Register of Directors (For Overseas Company);
	Register of Members (For Overseas Company);
	Guarantee by Shareholders or Beneficial Owners-specified form


Remarks:
The above documents should be certified true by a practicing solicitor, a practicing accountant or a HK licensed bank manager.

Client Services

Fund Deposit



[1]	Fund can be deposit to our below designated bank accounts by cash or cheque in the name of "Enhanced Securities Limited". After payment is made, please fax or email the payment slip with your name and account number to our Settlement Department at (852) 2893 1277 or sett@enhancedsec.com :

	Bank Name	Curr	Account Number	Account Name
	Bank of East Asia	HKD	(015)521-40-400882-8	Enhanced Securities Limited
	Bank of China	HKD	(012)586-0-008748-9	Enhanced Securities Limited - Clients' A/C
	HSBC	HKD	(004)400-781175-001	Enhanced Securities Limited

	Bank of East Asia	CNY	(015)521-40-405175-7	Enhanced Securities Limited

[2]	Carry-in the cheque in person to our office :
	37/F Times Tower, 393 Jaffe Road, Wanchai, Hong Kong.

[3]	Telegraphic Transfer ("TT") funds to our below designated bank accounts. After payment is made, please fax or email the receipt with your name and account number to our Settlement Department at (852) 2893 1277 or sett@enhancedsec.com :

	Bank Details	Curr	Swift Code	Account Details
	Bank of East Asia Shop Nos. A-C, G/F Easey Commercial Building 253-261 Hennessy Road, Hong Kong	HKD	BEASHKHH	(015)521-40-400882-8 Enhanced Securities Limited
	Bank of China No. 1 Garden Road Hong Kong	HKD	BKCHHKHHXXX	(012)586-0-008748-9 Enhanced Securities Limited - Clients' A/C
	HSBC No. 1 Queen's Road Central Hong Kong	HKD	HSBCHKHHHKH	(004)400-781175-001 Enhanced Securities Limited - Clients' A/C

Fund Withdrawal



			Download
Fund Withdrawal Application Form



Fund withdrawal can be proceeded on same day if Withdrawal Instruction can be received on or before 12:00pm. Otherwise, next business day will be the issue day.

[1]	Direct cheque deposit to client's designated bank account;

[2]	Collect cheque at our office in person;

[3]	Telegraphic Transfer ("TT") funds to client's designated bank account.

Hong Kong Market
Item	Curr	Rate / Charges	Minimum	Maximum
Commission Charges (Hong Kong Market)	HKD	0.25% on transaction amount	100	---

A-Share Market
Item	Curr	Rate / Charges	Minimum	Maximum
Commission Charges (A-Share Market)	CNY	0.25% on transaction amount	100	---

All charges and interests will be levied on client's accoount once the transaction is confirmed.
Enhanced Securities Limited reserves the right to revise the tariff and introduce new items in this Schedule. If you have any queries concerning the new fees and charges, please contact our Customer Services Hotline at (852) 2836 2188.
The tariff is effective in April 2018.

Stock Trading

Hong Kong Market
Shenzhen-Hong Kong Connect
Shanghai-Hong Kong Connect

Hong Kong Market
Item	Curr	Rate / Charges	Minimum	Maximum
CCASS Fee	HKD	0.002% on transaction amount (rounded up to the nearest cent)	2	---
Contract Stamp	HKD	0.1% on transaction amount (rounded up to the nearest dollar)	---	---
Trading Fee	HKD	0.005% on transaction amount	---	---
Transaction Levy	HKD	0.0027% on transaction amount	---	---
OTC Transaction	HKD	0.5% on transaction amount	---	---
FRC Transaction Levy	HKD	0.00015% on transaction amount	---	---

Shenzhen-Hong Kong Connect
Item	Curr	Rate / Charges	Minimum	Maximum
Handling Fee (Charged by SZSE)	CNY	0.00487% on transaction amount	---	---
Securities Management Fee (Charged by CSRC)	CNY	0.002% on transaction amount	---	---
Transfer Fee (Charged by China Clear & HKSCC)	CNY	0.004% on transaction amount	---	---
Stamp Duty (Charged by SAT)	CNY	0.1% on transaction amount on the seller	---	---

Shanghai-Hong Kong Connect
Item	Curr	Rate / Charges	Minimum	Maximum
Handling Fee (Charged by SSE)	CNY	0.00487% on transaction amount	---	---
Securities Management Fee (Charged by CSRC)	CNY	0.002% on transaction amount	---	---
Transfer Fee (Charged by China Clear & HKSCC)	CNY	0.004% on transaction amount	---	---
Stamp Duty (Charged by SAT)	CNY	0.1% on transaction amount on the seller	---	---

All charges and interests will be levied on client's accoount once the transaction is confirmed.
Enhanced Securities Limited reserves the right to revise the tariff and introduce new items in this Schedule. If you have any queries concerning the new fees and charges, please contact our Customer Services Hotline at (852) 2836 2188.
The tariff is effective in April 2018.

Settlement Charges

Hong Kong Market
A-Share Market

Hong Kong Market
Item	Curr	Rate / Charges	Minimum	Maximum
Physical Share Deposit	HKD	Free of charge	---	---
Transfer Deed Stamp Duty	HKD	5.00 per each share certificate	---	---
Physical Stock Withdrawal Charges	HKD	5.00 per board / Odd lot	25	---
Stock Custody Fee	HKD	Free of charge	---	---
Compulsory Share Buy-Back Fee	HKD	Amounts specified by HKSCC plus 200 handling charges	---	---
Registration of shares	HKD	2.50 per each share certificate plus 500 handling charges	---	---
EIPO	HKD	50 per instruction	---	---
Settlement Instruction ("SI")
Stock Deposit	HKD	Free of charge	---	---
Stock Withdrawal	HKD	5.00 per board / odd lot	20	200
Investor Settlement Instruction ("ISI")
Stock Deposit	HKD	Free of charge	---	---
Stock Withdrawal	HKD	Free of charge	---	---
Bonus Collection Fee	HKD	20 per stock	---	---
Rights Collection Fee	HKD	20 per stock	---	---
Subscription of New Issue	HKD	0.80 per lot plus 100 handling charges	---	---
Excess Rights Subscription of New Issue	HKD	100 per stock	---	---
Voting Service Charges	HKD	Free of charge	---	---
Dividend Collection Fee	HKD	0.5% of Dividend Amount	20	---
Scrip Fee	HKD	1.50 per lot	---	---
Deemed Book Close Script Fee (no dividend)	HKD	Free of charge	---	---

A-Share Market
Item	Curr	Rate / Charges	Minimum	Maximum
Stock Custody Fee	HKD	0.008% on daily stock portfolio value (charged in HKD)	---	---
Compulsory Share Buy Back Fees	CNY	Amounts specified by HKSCC plus 200 handling charges	---	---
EIPO	CNY	50 per instruction	---	---
Settlement Instruction ("SI")
Stock Deposit	CNY	Free of charge	---	---
Stock Withdrawal	CNY	5.00 per board / odd lot	20	200
Bonus Collection Fee	CNY	20 per stock	---	---
Rights Collection Fee	CNY	20 per stock	---	---
Subscription of New Issue	CNY	100 per stock	---	---
Excess Rights Subscription of New Issue	CNY	100 per stock	---	---
Voting Service Charges	CNY	Free of charge	---	---
Dividend Collection Fee	CNY	0.5% of Dividend Amount	20	---
Deemed Book Close Script Fee (no dividend)	CNY	Free of charge	---	---
Other Corporate Actions	CNY	100 per stock	---	---

All charges and interests will be levied on client's accoount once the transaction is confirmed.
Enhanced Securities Limited reserves the right to revise the tariff and introduce new items in this Schedule. If you have any queries concerning the new fees and charges, please contact our Customer Services Hotline at (852) 2836 2188.
The tariff is effective in April 2018.

Bank Charges

Hong Kong Market
A-Share Market

Hong Kong Market
Item	Curr	Rate / Charges	Minimum	Maximum
CHATS Payment to Local Bank	HKD	200	---	---
Telegraphic Transfer (TT)	HKD	300 or subject to paying bank	---	---
Return Cheque Charges	HKD	200 handling charge plus interest	---	---
Stop Payment	HKD	200	---	---
Lost Cheque	HKD	200	---	---

A-Share Market
Item	Curr	Rate / Charges	Minimum	Maximum
CHATS Payment to Local Bank	CNY	200	---	---
Telegraphic Transfer (TT)	CNY	300 or subject to paying bank	---	---
Return Cheque Charges	CNY	200 handling charge plus interest	---	---
Stop Payment	CNY	200	---	---
Lost Cheque	CNY	200	---	---

All charges and interests will be levied on client's accoount once the transaction is confirmed.
Enhanced Securities Limited reserves the right to revise the tariff and introduce new items in this Schedule. If you have any queries concerning the new fees and charges, please contact our Customer Services Hotline at (852) 2836 2188.
The tariff is effective in April 2018.

Loan Charges

Hong Kong Market
A-Share Market

Hong Kong Market
Item	Curr	Rate / Charges	Minimum	Maximum
Cash Account Late Interest	HKD	13.5% per annum	---	---
Margin Account Loan Interest	HKD	8.5% per annum	---	---
Margin Account Over Loan Limit Interest	HKD	12% per annum	---	---

A-Share Market
Item	Curr	Rate / Charges	Minimum	Maximum
Cash Account Late Interest	CNY	13.5% per annum	---	---
Margin Account Loan Interest	CNY	8.5% per annum	---	---
Margin Account Over Loan Limit Interest	CNY	12% per annum	---	---

All charges and interests will be levied on client's accoount once the transaction is confirmed.
Enhanced Securities Limited reserves the right to revise the tariff and introduce new items in this Schedule. If you have any queries concerning the new fees and charges, please contact our Customer Services Hotline at (852) 2836 2188.
The tariff is effective in April 2018.

Others

Hong Kong Market
A-Share Market

Hong Kong Market
Item	Curr	Rate / Charges	Minimum	Maximum
Entitlement Claim (Bonus & Dividend)	HKD	300 plus CCASS cost	300	---
CCASS Sub-Account Fee	HKD	100 per month per account	100	---
Audit Confirmation	HKD	Free of charge	---	---
Inactive Account	HKD	Free of charge	---	---
Reprint Daily Statement	HKD	Within 1 month - Free of charge	---	---
	HKD	Over 1 month - 50 per copy	---	---
	HKD	Over 12 months - 100 per copy	---	---
Reprint Monthly Statement	HKD	Within 3 months - Free of Charge	---	---
	HKD	Over 3 months - 50 per copy	---	---
	HKD	Over 12 months - 100 per copy	---	---

A-Share Market
Item	Curr	Rate / Charges	Minimum	Maximum
Entitlement Claim (Bonus & Dividend)	CNY	300 plus CCASS cost	300	---
CCASS Sub-Account Fee	CNY	100 per month per account	100	---
Audit Confirmation	CNY	Free of charge	---	---
Inactive Account	CNY	Free of charge	---	---
Reprint Daily Statement	CNY	Within 1 month - Free of charge	---	---
	CNY	Over 1 month - 50 per copy	---	---
	CNY	Over 12 months - 100 per copy	---	---
Reprint Monthly Statement	CNY	Within 3 months - Free of Charge	---	---
	CNY	Over 3 months - 50 per copy	---	---
	CNY	Over 12 months - 100 per copy	---	---

All charges and interests will be levied on client's accoount once the transaction is confirmed.
Enhanced Securities Limited reserves the right to revise the tariff and introduce new items in this Schedule. If you have any queries concerning the new fees and charges, please contact our Customer Services Hotline at (852) 2836 2188.
The tariff is effective in April 2018.

Download

Forms Download


		Download
Account Particulars Amendment Form
Authorization of Discretionary Account(s)
Fund Withdrawal Application Form
Notice of Account or Service Termination
Online Real Time Quotation Subscription Form
Physical Share Withdrawal Form
Securities Settlement Instruction ("SI") or Investor Settlement Instruction ("ISI") under CCASS


1.	From time to time, it is necessary for clients to supply Enhanced Securities Limited (“ESL”) with data which are personal data (“Data”) for the purposes of the Personal Data (Privacy) Ordinance (Cap. 486 of the laws of Hong Kong). The purposes for which Data (and other information) relating to clients may be used as follows:
	a)	the daily operation of the services and facilities provided to clients;
	b)	conducting credit checks and ensuring client’s ongoing credit worthiness;
	c)	assisting other institutions to conduct credit checks;
	d)	designing and marketing financial services or related products to clients;
	e)	meeting the requirements to make disclosure under the requirements of any law or regulations; and
	f)	any other purpose relating to or in connection with ESL’s business or dealing or the business or dealings of ESL’s group companies.
2.	Failure to supply such data may result in ESL being unable to open or continue accounts or establish or continue credit facilities or provide the services and products mentioned in clause 1 above to you.
3.	It is also the case that data may be collected from Clients in the ordinary course of the continuation of the business relationship.
4.	ESL will not collect any personal data that identifies a user to this website from cookies (which are small pieces of information stored on a person’s computer containing information that can be retrieved by this website) or other sources, unless specified otherwise.
5.	Data (and other information) held by ESL relating to clients will be kept confidential but ESL may disclose all Data (and other information) to:
	a)	any officer, employee, agent, contractor or third party who provides administrative, credit information, debt collection, telecommunications, computer, payment or other services to ESL in connection with the operation of ESL’s business;
	b)	any financial institution with which the client has or proposes to have dealings;
	c)	regulatory or judicial authorities and other relevant government or statutory bodies;
	d)	any other person under a duty of confidentiality to ESL including ESL’s group companies which has undertaken to keep such information confidential;
	e)	ESL shares information regarding clients among ESL and its group companies only in accordance with strict internal security standards and confidentiality policies and with applicable law;
	f)	ESL holds its employees fully accountable for adhering to those standards, policies and laws;
	g)	ESL does not share information about its clients with other companies except in order to conduct its business, comply with applicable law, protect against fraud or make available special offers of products and services that ESL feels may be of interest to its clients. ESL may also provide information to regulatory authorities and law enforcement officials in accordance with applicable law; and
	h)	ESL has established high standards for protecting information regarding its clients from unauthorized alteration or destruction.
6.	ESL intends to use the client’s personal data in direct marketing and ESL requires the client’s consent (which includes an indication of no objection) for that purpose. The specific requirement regarding your consent (which includes an indication of no objection) is introduced in Part VIA of the Personal Data (Privacy) Amendment Ordinance 2012. In this connection, please note that:
	a)	the client’s name, contact details, products and services portfolio information, transaction pattern and behaviour, financial background and demographic data held by ESL from time to time may be used by ESL in direct marketing;
	b)	the following classes of services, products and subjects may be marketed:
		i.	financial, insurance, securities, commodities, investment and related services and products and facilities; and
		ii.	reward, loyalty or privileges programmes or any programme incidental to them in relation to the class of marketing subjects as referred to in clause 6b(i) above.
7.	Under and in accordance with the terms of the Personal Data (Privacy) Ordinance each client has a right to:
	a)	check whether ESL hold Data about the client and the right of access to such Data;
	b)	require ESL to correct any Data relating to the client which is inaccurate; and
	c)	ascertain ESL’s policies and practices in relation to Data and be informed of the kind of the client’s personal data held by ESL.
8.	Request for access and/or correct any data that client has submitted shall be sent to the following address:
		Enhanced Securities Limited
		37/F Times Tower, 393 Jaffe Road, Wanchai, Hong Kong.
		Tel : (852) 2836 2188
9.	In accordance with the terms of the Personal Data (Privacy) Ordinance, ESL has the right to charge a reasonable fee for the processing of any Data access request. If you do not wish ESL to use or provide to other persons your data for use in direct marketing as described in clause 6 above, the client may exercise the opt-out right by notifying ESL in writing to the address: 37/F Times Tower, 393 Jaffe Road, Wanchai, Hong Kong.

Risk Disclosure Statements

Securities
Connect Securities
Futures and Options

Risk Disclosure Statements relating to trading in Securities



General risk disclosure statement applicable to all Securities
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 disclosure statement on the Growth Enterprise Market (“GEM”)
	(a)	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.
	(b)	You should make the decision to invest only after due and careful consideration. The greater risk profit and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.
	(c)	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 gazette newspapers.
	(d)	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.

Risk disclosure statement on 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 us. 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 disclosure statement on transactions over Internet
We shall take all reasonably practicable steps to secure the transmission of information and communication between you and us via the Internet. However, you acknowledge that complete security cannot be guaranteed and any Transaction over the Internet may be subject to interruption, transmission blackout, delayed transmission due to Internet traffic or incorrect data transmission given the open nature of the Internet and such mode of transmission and communication is used at your own risk. You further acknowledge that there may be a time lag in transmission of information, instruction and communication via the Internet.

Risk disclosure statement on the safekeeping, pledge, deposit or loan of Securities
	(a)	There is risk if you provide us with an authority that allows us 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 of the discharge and satisfaction of our settlement obligations and liabilities.
	(b)	If your securities or securities collateral are received or held by us 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.
	(C)	Additionally, your authority may be deemed to be renewed (i.e. without your written consent) if we issue 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.
	(d)	You are not required by any law to sign these authorities. But an authority may be required by us, 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.
	(e)	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 we are responsible to you for securities or securities collateral lent or deposited under your authority, a default by us could result in the loss of your securities or securities collateral.
	(f)	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 Trading NASDAQ-AMEX Securities at the HKEx
The securities under the Nasdaq-Amex Pilot Program (PP) are aimed at sophisticated investors. You should consult us and become familiarized 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.

Risk of Trading of Foreign Securities, including B Shares listed in the People’s Republic of China
You should only undertake trading of foreign securities if you understand the nature of foreign securities trading and the extent of your exposure to risks. In particular, foreign securities trading is not regulated by the HKEx and will not be covered by the Compensation Fund despite the fact that Enhanced Securities Limited is an exchange participant of the HKEx. You should carefully consider whether such trading is appropriate for you in light of your experience, risk profile and other relevant circumstances and seek independent professional advice if you are in doubt.

Risk of Trading on Over-The-Counter Market
You should only undertake trading on the over-the-counter ("OTC") trading facilities if you understand the nature of such trading and such trading facilities and the extent of your exposure to risks. By trading on OTC market, you are exposed to the credit, settlement and other risks of the counterparty to the relevant OTC transactions, including (but not limited to) transactions of Securities before their listing on the Exchange. Settlement of the relevant transactions is not guaranteed and you will be responsible for any losses or expenses resulting from your and/or your counterparty's settlement failures.

Trades executed on OTC market may be cancelled and void if that particular Securities subsequently fails to list on the Exchange. Furthermore, your order may only be partially executed, or not at all, as a result of the lower liquidity in trading on OTC market as compared to regular market hours of the Exchange. There may also be greater volatility in trading on OTC market than in regular market hours of the Exchange. The lower liquidity and higher volatility in trading on OTC market may then result in wider than normal spreads for a particular type of Securities.

The prices of Securities traded on OTC market may differ significantly from their opening or traded prices transacted during the regular market hours upon the listing of the Securities on the Exchange. The prices displayed on OTC market may not reflect the prices in other concurrently operating automated trading systems dealing in the same Securities. News announcements made by the issuers may affect the price of their Securities after regular market hours. Similarly, important financial information is often announced outside regular market hours. In trading on OTC market, these announcements may occur during trading and may cause an exaggerated and unsustainable effect on the price of a particular type of Securities.

In particular, OTC market is not regulated by the HKEx and will not be covered by the Compensation Fund until the relevant transaction is properly recorded on the trading system of the HKEx upon the listing of the Securities on the HKEx. You should therefore carefully consider whether such trading is appropriate for you in the light of your experience, risk profile and other relevant circumstances and seek independent professional advice if you are in doubt.

Risks of listed and over the counter Derivative Products (including but not limited to Equity Linked Notes/Instruments and warrants, collectively “Derivative Products”)
You understand and agree that:
	(a)	Derivative Products often involve a high degree of gearing, so that a relatively small movement in the price of the underlying securities results in a disproportionately large movement in the price. The values of Derivative Products are not fixed, but fluctuate with the market, which may be influenced by many factors, including changes in the economic and/or political environment, The prices of Derivative Products can therefore be volatile;
	(b)	you should not buy a Derivative Product unless you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges;
	(c)	while Derivative Products are unexercised and if their underlying securities are suspended from trading on the HKEx or any other relevant stock exchange, they may be suspended from trading for a similar period of time as their underlying Securities;
	(d)	it is not possible to predict the liquidity of Derivative Products. The fact that the Derivative Products may be so listed does not necessarily lead to greater liquidity than if they were not so listed;
	(e)	you are obligated to accept the underlying securities if the conversion price is triggered;
	(f)	the market value of Derivative Products may change as the result of changes in the actual or perceived credit standing of the issuer;
	(g)	if there is a stock split, issue of bonus shares or other unexpected event that changes the number of issued shares of the underlying stock, your counterparty may adjust the contract terms, at its sole discretion, to reflect the new market conditions. This may include unwinding the contract. You will be advised in the event of such adjustments;
	(h)	Derivative Products have limited liquidity. It may be impossible to liquidate an existing position or to do so at a satisfactory price because the market finds it difficult to assess the value, to determine a fair price or assess the exposure to risk;
	(i)	Derivative Products are imbedded with options. Transactions in options carry a high degree of risk. The risk of loss in trading options can be substantial. Prospective investor should have prior knowledge of, or experience in option markets. You should carefully consider whether such trading is suitable in the light of your own financial position and investment objectives;
	(j)	pre-termination prior to maturity is possible subject to prevailing market terms and conditions;
	(k)	the value of the Derivative Products may be reduced due to any downgrades by rating agencies such as Moody's Investors Inc. or Standard & Poor's Rating Services; and
	(l)	the issuers may enter into discount, commission or fee arrangements with brokers and/or any of its affiliates with respect to the primary or secondary market in the Derivative Products.

Risks Disclosure Statement for Trading Callable Bull/ Bear Contracts
Mandatory Call
Callable Bull/bear contracts (“CBBCs”) are not suitable for all types of investors and investors should consider their risk appetite prior to trading. In any case, one should not trade in CBBC unless he/she understands the nature of the product and is prepared to lose the total amount invested since a CBBC will be called by the issuer when the price of the underlying asset hits the Call Price and trading in that CBBC will expire early. Payoff for Category NCBBC will be zero when they expire early. When category R CBBC expire early the holder may receive a small amount of Residual Value payment, but there may be no Residual Value payment in adverse situations. Brokers may charge their clients a service fee for the collection of the Residual Value payment from the respective issuers.

In general, the larger the buffer between the Call Price and the Spot Price of the underlying asset, the lower the probability of the CBBC being called since the underlying asset of that CBBC would have to experience a larger movement in the price before the CBBC will be called. However at the same time, the larger the buffer, the lower the leverage effect will be.

Once the CBBC is called, even though the underlying asset may bounce back in the right .direction, the CBBC which has been called will not be revived and investors will not be able to profit from the bounce-back. Besides, the Mandatory Call Event (“MCE”) of a CBBC with overseas assets as underlying may be triggered outside the Hong Kong stock Exchange’ s (“the Exchange”) trading hours.

Gearing Effects
Since a CBBC is a leveraged product, the percentage change in the price of a CBBC is greater compared with that of the underlying asset. Investors may suffer higher losses in percentage terms if they expect the price of the underlying asset to move one way but it moves in the opposite direction.

Limited Life
A CCBC has a limited life, as denoted by the fixed expiry date, with a lifespan of 3 months to 5 years. The life of a CBBC may be shorter if called before the fixed expiry date. The price of a CBBC fluctuates with the changes in the price of the underlying asset from time to time and may become worthless after expiry and in certain cases, even before the normal expiry if the CBBC has been called early.

Movement with Underlying Asset
Although the price of a CBBC tends to follow closely the price of its underlying asset, but in some situations it may not (i.e. delta’ may not always be close to one). Prices of CBBC are affected by a number of factors, including its own demand and supply, funding costs and time to expiry. Moreover, the delta for a particular CBBC may not always be close to one, in particular when the price of the underlying asset is close to the Call Price.

Liquidity
Although CBBC have liquidity providers, there is no guarantee that investors will be able to buy/sell CBBC at their target prices any time they wish.

Funding Costs
The issue price of a CBBC includes funding costs and issuers will specify the formula for calculating the funding costs of their CBBC at launch in the listing documents. Since the funding costs for each CBBC issue may be different as it includes the issuer’s financing /stock borrowing costs after adjustment for expected ordinary dividend of the stock (if the underlying is a Hong Kong stock since the CBBC will not be adjusted for ordinary dividend) plus the issuer’s profit margin, investors are advised to compare the funding costs of different issuers for CBBC with similar underlying assets and terms. The funding costs will gradually be reduced over time along with the CBBC in the secondary market as CBBC moves towards expiry.

In general, the longer the duration of the CBBC, the higher the total funding costs will be since it is similar to investors borrowing for a longer tenure to trade in the underlying asset. When a CBBC is called, the CBBC holders (investors) will lose the funding cost for the full period since the funding cost is built into the CBBC price upfront at launch even though with the MCE, the actual period of funding for CBBC turns out to be shorter. In any case, investors should note that the funding costs of a CBBC after launch may vary during its life and the Liquidity Provider is not obliged to provide for the CBBC based on the theoretical calculation of the funding costs for that CBBC at launch.

Trading of CBBC Close to Call Price
When the underlying asset is trading close to the Call Price, the price of a CBBC may be more volatile with wider spreads and uncertain liquidity. CBBC may be called at any time and trading will terminate as a result.

However, the trade inputted by the investor executed and confirmed by the investors after the MCE since there may be some time lapse between the MCE time and suspension of the CBBC trading. Any trades executed after the MCE (i.e. Post MCE Trades) will not be recognized and will be cancelled. Therefore, investors should be aware of the risk and ought to apply special caution when the CBBC is trading close to the Call Price.

Issuers will announce the exact call time within 1 hour after the trigger of MCE, and HKEx will also send the list of Post MCE Trades to the relevant Exchange Participants (brokers) who in turn will inform their clients accordingly. For avoidance of doubt on whether their trades have been cancelled (i.e. whether they are Post MCE Trades0, the investors may check with their brokers.

CBBC with Overseas Underlying Assets
Investors trading CBBC with overseas underlying assets are exposed to an exchange rate risk as the price and cash settlement amount of the CBBC are converted from a foreign currency into Hong Kong dollars. Exchange rates between currencies are determined by forces of supply and demand in the foreign exchange markets which are affected by various factors.

Besides, CBBC issued on overseas underlying assets may be called outside the Exchange’s trading hours. In such case, the CBBC will be terminated from trading on the Exchange in the next trading session or soon after the issuer has notified the Exchange about the occurrence of the MCE. There will be no automatic suspension of the CBBC by AMS/3. For Category R CBBC, valuation of the residual value will be determined on the valuation day according to the terms in the listing documents.

Risks Disclosure Statement for Trading Derivative Warrants
Derivative warrant trading involves high risks and is not suitable for every investor. Investors should understand and consider the following risks before trading in derivative warrants:

Issuer Risk
Derivative warrant holders are unsecured creditors of the issuer and they have no preferential claim to any assets an issuer may hold.

Gearing Risk
Although derivative warrants often cost less than the price of the underlying assets, a derivative warrant may change in value to a much greater extent than the underlying assets. Although potential return on derivative warrants may be higher than that on the underlying assets, it should be noted that in the worst case the value of derivative warrants may fall to zero and holders may lose their entire investment amount.

Limited Life
Unlike stocks, derivative warrants have an expiry date and limited life. Unless the derivative warrants are in-the-money, they become worthless at expiration.

Time Decay
So long as other factors remain unchanged, the value of derivative warrants will decrease over time. Therefore, derivative warrants should never be viewed as products that are bought and held as long term investments.

Volatility
Other factors being equal an increase in the volatility of the underlying asset should lead to a higher warrant price and a decrease in volatility lead to a lower derivative warrant price.

Market Forces
In addition to the basic factors that determine the theoretical price of a derivative warrant, derivative warrant price are also affected by the demand for and supply of the derivative warrant. This is particularly the case when a derivative warrant issue is almost sold out and when there are further issues of an existing derivative warrant.

Turnover
High turnover should not be regarded as an indication that a derivative warrant’s price will go up. The price of a derivative warrant is affected by a number of factors in addition to market forces, such as the price of the underlying assets and its volatility, the time remaining to expiry, interest rates and the expected dividend on the underlying assets.

Risks Disclosure Statement for Trading Exchange Traded Funds
Market Risk
Exchange Traded Funds (“ETFs”) are typically designed to track the performance of certain indices, market sectors, or groups of assets such as stocks, bonds, or commodities. ETF managers may use different strategies to achieve this goal, but in general they do not have the discretion to take defensive positions in declining markets. Investors must be prepared to bear the risk of loss and volatility associated with the underlying index/assets.

Tracking errors
Tracking errors refer to the disparity in performance between an ETF and its underlying index/assets. Tracking errors can arise due to factors such as the impact of transaction fees and expenses incurred to the ETF, changes in composition of the underlying index/assets, and the ETF manager’s replication strategy. (The common replication strategies include full replication/representative sampling and synthetic replication which are discussed in more detail below.)

Trading at Discount or Premium
An ETF may be traded at a discount or premium to its Net Asset Value. This price Discrepancy is caused by supply and demand factors, and may be particularly likely to emerge during periods of high market volatility and uncertainty. This phenomenon may also be observed for ETFs tracking specific markets or sectors that are subject to direct investment restrictions.

Foreign Exchange Risk
Investors trading ETFs with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate. Currency rate fluctuations can adversely affect the underlying assets value, also affecting the ETF price.

Liquidity Risk
Securities Market Makers (“SMMs”) are Exchange Participants that provide liquidity to facilitate trading in ETFs. Although most ETFs are supported by one or more SMMs, there is no assurance that active trading will be maintained. In the event that the SMMs default or cease to ulfil their role, investors may not be able to buy or sell product.

Counterparty Risk Involved in ETFs with Different Replication Strategies
	(a)	Full replication and representative sampling strategies
		An ETF using a full replication strategy generally aims to invest in all constituent stocks/assets in the same weightings as its benchmark. ETFs adopting a representative sampling strategy will invest in some, but not all of the relevant constituent stocks/assets. For ETFs that invest directly in the underlying assets rather than through synthetic instruments issued by third parties, counterparty risk tends to be less of concern.
	(b)	Synthetic replication strategies
		ETFs utilizing a synthetic replication strategies use swaps or other derivative instruments to gain exposure to a benchmark. Currently, synthetic replication ETFs can be further categorized into two forms:
		i.	Swap-Based ETFs
		-	Total return swaps allow ETF managers to replicate the benchmark performance of ETFs without purchasing the underlying assets.
		-	Swap-based ETFs are exposed to counterparty risk of the swap dealers and may suffer losses if such dealers default or fail to honor their contractual commitments.
		ii.	Derivative Embedded ETFs
		-	ETF managers may also use other derivative instruments to synthetically replicate the economic benefit of the relevant benchmark. The derivative instruments may be issued by one or multiple issuers.
		-	Derivative embedded ETFs are subject to counterparty risk of the derivative instruments’ issuers and may suffer losses if such issuers default or fail to honors their contractual commitments.

Even where collateral is obtained by an ETF, it is subject to the collateral provider fulfilling its obligations. There is a further risk that when the right against the collateral is exercised, the market value of the collateral could be substantially less than the amount secured resulting in significant loss to the ETF. It is important that investors understand and critically assess the implications arising due to different ETF structures and characteristics.

Risks Disclosure Statement for Trading Equity Linked Instruments

Exposure to Equity Market
Investors are exposed to price movements in the underlying security and the stock market, the impact of dividends and corporate actions and counterparty risks. Investors must also be prepared to accept the rick of receiving the underlying shares or a payment less than their original investment.

Possibilities of Losing Investment
Investors may lose part or all of their investment if the price of the underlying security moves against their investment view.

Price Adjustment
Investors should note that any dividend payment on the underlying security may affect its price and the payback of the ELI at expiry due to ex-dividend pricing. Investors should also note that issuers may make adjustments to the ELI due to corporate actions on the underlying security.

Interest Rates
While most ELI offer a yield that is potentially higher than the interest on fixed deposits and traditional bonds, the return on investment is limited to the potential yield of the ELI.

Potential Yield
Investors should consult their brokers on fees and charges related to the purchase and sale of ELI and payment/delivery at expiry. The potential yields disseminated by. Hong Kong Exchanges and Clearing Limited have not taken fees and charges into consideration.

You further understand and agree that:
	(a)	you are acting on your own account and you make an independent decision prior to trading in the Derivative Products or any other products in light of your own circumstances; and
	(b)	any information supplied by us and/or explanation relating to the terms and conditions of the Derivative Products or any other products given by us or our staff shall not amount to investment advice or recommendation to purchase the Derivative Products or any other products.

Risk of Providing an Authority to Hold Mail or to Direct Mail to Third Parties
If you provide us 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 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 Disclosure Statements relating to trading in Connect Securities



Mainland-Related Risks
The Mainland is an emerging market and investing in the Mainland involves special considerations and risks, including but without limitation, greater price volatility, less developed regulatory and legal framework, economic, and social and political instability.

Market Risk
The market value of Connect Securities and the income from them may go down as well as up. There can be no assurance that the Clients will achieve profits or avoid losses from trading Connect Securities, significant or otherwise. The return that the Client receives from Connect Securities (if any) will fluctuate in response to changes in capital appreciation and/or income relating to such Connect Securities. Furthermore, Connect Securities may experience volatility and decline. Through trading Connect Securities, the Client is exposed to various forms of risk, including (for example) interest rate risks (such as risks of falling Connect Securities values in a rising interest rate market), income risks (such as risks of falling incomes from Connect Securities in a falling interest rate market) and credit risk (risk of a default by an issuer of Connect Securities).

Possible Business Failure Risk
In the current economic environment, global markets are experiencing very high levels of volatility and an increased risk of corporate failures. The insolvency or other corporate failure of any issuer of Connect Securities may have an adverse effect on the Client's investment. Clients may lose money by investing in Connect Securities.

Equity Risk
Investing in Connect Securities may offer a higher rate of return than other financial products or bank deposits. However, the risks associated with investments in Connect Securities may also be higher, because the investment performance of Connect Securities depends upon factors which are difficult to predict. Such factors include the possibility of sudden or prolonged market declines and risks associated with individual companies.

Dividend Risk
Whether an issuer of Connect Securities will pay dividends is subject to such issuer's dividend policy. Dividend payment rates in respect of Connect Securities may depend on factors including general economic conditions and the financial positions of the relevant issuers. There can be no assurance that any dividends or distributions in respect of Connect Securities will be declared or paid.

Liquidity Risks
Although Connect Securities are listed for trading on SSE or SZSE and available for trading through SEHK by Shanghai and Shenzhen Connect, there can be no assurance that an active trading market for Connect Securities will develop or be maintained. If the Client needs to sell Connect Securities at a time when no active market for them exists, the price the Client receives for his or her Connect Securities — assuming he or she is able to sell them — is likely to be lower than the price received if an active market did exist.

General Legal and Regulatory Risk
There are numerous legal and regulatory requirements in Hong Kong and in the Mainland regarding Connect Securities. Any change in any such legal and regulatory requirements may have an impact on the market sentiment or may affect the performance of Connect Securities. Such change may occur immediately, without prior notice. It is impossible to predict whether such an impact caused by any such change will be positive or negative for Connect Securities. In the worst case scenario, Clients may lose all of his investments in Connect Securities.

Currency Risk
The value of RMB against HKD or other foreign currencies may be affected by a wide range of factors. There is no guarantee that RMB will not depreciate. A depreciation of RMB may result in a decrease in the market value of RMB securities and the realisation price of RMB securities. Non-RMB based investors who are trading in RMB securities may also sustain loss in the event that they subsequently convert any RMB proceeds back to HKD or other base currencies. There are also significant restrictions on the remittance of RMB into and out of the Mainland. If the issuer of RMB securities is not able to remit RMB to Hong Kong or make distributions in RMB due to exchange controls or other restrictions, the issuer may make distributions (including dividends and other payments) in other currencies. Clients may therefore be exposed to additional foreign exchange risk and liquidity exposures. The liquidity and trading price of Connect Securities may be adversely affected by the limited availability of RMB outside the Mainland and restrictions on the conversion of RMB. These factors may affect the liquidity of RMB for investors and accordingly adversely affect the market demand for Connect Securities.

ChiNext Risks
Listed companies on ChiNext are usually of emerging nature with smaller operating scale. Therefore, they are subject to higher fluctuation in stock prices and liquidity and have higher risks and turnover ratios than companies listed on the main board. Stocks listed on ChiNext may be overvalued and such exceptionally high valuation may not be sustainable. Stock prices may be more susceptible to volatility or manipulation due to fewer circulating shares. The rules and regulations regarding companies listed on ChiNext are less stringent in terms of profitability and share capital than those in the main board and SME board of the SZSE. It may be more common and faster for companies listed on ChiNext to delist. This may have an adverse impact on the Client if the companies that he invests in are delisted. Investments in ChiNext shares may result in significant losses for Clients.

Additional Important Information, Risk Disclosure Statements and Terms and Conditions Applicable to Margin Trading of Securities under Shanghai and Shenzhen Connect
Client’s attention is drawn to the Rules of the Exchange governing the China Connect Service, “Shanghai Connect Shenzhen Connect Information Book for Investors” published from time to time on HKEx’s website which will provide information on the rules and regulations in relation to Margin Trading for SSE Securities/SZSE Securities.

Currently, investors can only conduct margin trading in certain SSE Securities/SZSE Securities that the Relevant Mainland Stock Exchange has determined are eligible for margin trading. A List of Eligible SSE Securities for Margin Trading or a List of Eligible SZSE Securities for Margin Trading, the scope of which will be determined by the Relevant Mainland Stock Exchange from time to time, as the case may be, will be posted on the HKEx website for reference by the investing public. Only certain SSE Securities/SZSE Securities which are eligible for both buy orders and sell orders through the Relevant Stock Connect will be included in the relevant list (“Eligible Securities for Margin Trading”). Enhanced shall determine the margin ratio of the Eligible Securities for Margin Trading from time to time and may change the margin ratio of these Eligible Securities for Margin Trading at Enhanced’s sole discretion. Any collateral value deriving from the holding of the Eligible Securities for Margin Trading shall only be used to facilitate the purchase Eligible Securities for Margin Trading as permitted via the Relevant Stock Connect.

According to the relevant rules of the Relevant Mainland Stock Exchange, Relevant Mainland Stock Exchange may suspend margin trading activities in specific SSE Securities/SZSE Securities when the volume of margin trading activities in such SSE Securities/SZSE Securities exceeds the threshold determined by the Relevant Mainland Stock Exchange and resume margin trading activities when the volume drops below a prescribed threshold. When SEHK is notified by the Relevant Mainland Stock Exchange that such suspension and resumption involves an SSE Security/SZSE Security on the List of Eligible SSE Securities for Margin Trading or List of Eligible SZSE Securities for Margin Trading, investors will be informed through the HKEx website. Margin trading in the relevant SSE Security/SZSE Security should be suspended or resumed in Hong Kong accordingly.

Based on current SSE/SZSE requirements on margin trading, the Relevant Mainland Stock Exchange will suspend further margin trading in a stock eligible for margin trading after the “margin trading indicator” for the stock (单只股票的融资监控指标) reaches 25%, or such other percentage as the Relevant Mainland Stock Exchange stipulates from time to time.

When the "margin trading indicator” drops below 20% (or such other percentage as the Relevant Mainland Stock Exchange stipulates from time to time), the Relevant Mainland Stock Exchange will allow margin trading to resume. For information, SSE and SZSE publish a list of Eligible Securities for Margin Trading which has reached the 25% margin trading indicator on their websites at http://www.sse.com.cn and http://www.szse.cn respectively.

The suspension and resumption of margin trading in Eligible Securities for Margin Trading through the Relevant Stock Connect will follow the suspension and resumption of margin trading activities in SSE after SSE has duly notified SEHK. Client must be aware of Enhanced margin call policy and ensure there are sufficient funds in the account.

Purchase of SSE Securities/SZSE Securities that are not eligible for Margin Trading
Clients wishing to purchase SSE Securities/SZSE Securities that are not eligible for margin trading may do so under a cash transaction and clients must settle the transaction within the same day as required under the Relevant Stock Connect. If clients do not settle their transactions as required, Enhanced will apply other available collateral possessed by Enhanced to settle the amount owed and/or to dispose of the securities at its sole and absolute discretion. In accordance with the relevant rules or regulations published by HKEx from time to time under the Relevant Stock Connect, Enhanced will not provide any margin trading facility to purchase SSE Securities/SZSE Securities that are not eligible for margin trading.

Risk Disclosure Statement Relating to Margin Trading, etc.
Clients must be aware of the general restrictions applicable to the market operated by the Relevant Mainland Stock Exchange and under mainland laws, and the specific restrictions applicable to the trading of SSE Securities or SZSE Securities through the Relevant Stock Connect. Clients must consider and acknowledge that all risks relating to SSE Securities/SZSE Securities would be increased correspondingly with respect to the margin trading of SSE Securities/SZSE Securities due to, among others, the effect of leverage and the additional restrictions applicable to margin trading of SSE securities/SZSE Securities. You are reminded of the risk of margin trading, etc. listed in the Client Agreement.

An investor may be exposed to risks occasioned by suspension and resumption of margin trading (including but not limited to potential price volatility and inability to sell in a falling market).

Client is fully aware of and acknowledges and agrees that with the authorities or powers given by or referred to in the First Schedule of the Client Agreement, Enhanced shall be at liberty to deal with the Client’s SSE Securities/SZSE Securities and/or any other collateral (including but not limited to forced liquidation or sale thereof) in accordance with such authorities or powers, or in any manner permitted by any applicable law or rules.

The risk of loss in financing a transaction by deposit of collateral is significant. Client may sustain losses in excess of his/her/its cash and any other assets deposited as collateral with Enhanced Market conditions may make it impossible to execute contingent orders, such as "stop-loss" or "stop limit" orders. Client 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, Client’s collateral may be liquidated without Client’s consent. Moreover, Client will remain liable for any resulting deficit in Client’s account and interest charged on Client’s account. Client should therefore carefully consider whether such a financing arrangement is suitable in light of Client’s own financial position and investment objectives.

The Facility provided by Enhanced for the margin trading of SSE Securities/SZSE Securities is provided only for that purpose (unless Enhanced agrees otherwise), and is subject to the terms and conditions stated in the Facility Letter.

Without prejudice to any other rights of Enhanced, Enhanced reserves the right to exercise margin call in respect of any SSE Securities/SZSE Securities involved in or otherwise affected by any suspension/resumption of margin trading at any time.

Mainland Stock Exchange may from time to time change its rules and regulations relating to Shanghai and Shenzhen Connect and Client undertakes to keep abreast of such changes.

Unless otherwise expressly agreed by Enhanced, and subject to compliance with laws and regulations, the Client shall not be allowed to withdraw RMB cash obtained or derived from margin trading in Connect Securities under any margin facility granted by Enhanced.

Other than the first fixed charge created in favour of Enhanced under Enhanced’ Client Agreement and Schedules, Client is not permitted to pledge or create any encumbrance over any Connect Securities acquired via Shanghai and Shenzhen Connect using any margin facility provided by Enhanced.

Risk Disclosure Statements relating to trading in Futures and Options



Risk of Trading Futures and Options
The risk of loss in trading Futures Contracts or Options is substantial. In some circumstances, the Client may sustain losses in excess of the Client’s initial margin funds. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily avoid loss. Market conditions may make it impossible to execute such orders. The Client may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, the Client’s position may be liquidated. The Client will remain liable for any resulting deficit in the Client’s Account. The Client should therefore study and understand Futures Contracts and Options before trade and carefully consider whether such trading is suitable in the light of the Client’s own financial position and investment objectives. If the Client trade Options the Client should inform himself of exercise and expiration procedures and the Client’s rights and obligations upon exercise or expiry.

Risk of Margin Trading
The risk of loss in financing a transaction by deposit of collateral is significant. The Client may sustain losses in excess of the Client’s cash and any other assets deposited as collateral with ESL. Market conditions may make it impossible to execute contingent orders, such as “stop-loss” or “stop-limit” orders. The Client 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, the Client’s collateral may be liquidated without the Client’s consent. Moreover, the Client will remain liable for any resulting deficit in the Client’s Account and interest charged on the Client’s Account. The Client should therefore carefully consider whether such a financing arrangement is suitable in light of the Client’s own financial position and investment objectives.

Risk of Client Assets Received or Held Outside Hong Kong
Client’s assets received or held by ESL outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the SFO and the rules made thereunder. Consequently, such Client’s assets may not enjoy the same protection as that conferred on Client’s assets received or held in Hong Kong.

Additional Risks Disclosure to Futures and Options
This brief statement does not disclose all of the risks and other significant aspects of trading in Futures and Options. In light of the risks, the Client should undertake such Transactions only if the Client understands the nature of the contracts (and contractual relationships) into which the Client is entering and the extent of the Client's exposure to risk. Trading in Futures and Options is not suitable for many members of the public. The Client should carefully consider whether trading is appropriate for the Client in light of the Client's experience, objectives, financial resources and other relevant circumstances.

Futures
Effect of ‘Leverage’ or ‘Gearing’
Transactions in Futures carry a high degree of risk. The amount of initial margin is small relative to the value of the Futures Contract so that Transactions are ‘leveraged’ or ‘geared’. A relatively small market movement will have a proportionately larger impact on the funds the Client have deposited or will have to deposit: this may work against the Client as well as for the Client. The Client may sustain a total loss of initial margin funds and any additional funds deposited with ESL to maintain the Client's position. If the market moves against the Client's position or margin levels are increased, the Client may be called upon to pay substantial additional funds on short notice to maintain the Client's position. If the Client fails to comply with a request for additional funds within the time prescribed, the Client's position may be liquidated at a loss and the Client will be liable for any resulting deficit.

Risk-Reducing Orders or Strategies
The placing of certain orders (e.g. “stop-loss” orders, or “stop-limit” orders), which are intended to limit losses to certain amounts, may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as ‘spread’ and ‘straddle’ positions may be as risky as taking simple ‘long’ or ‘short’ positions.

Options
Variable Degrees of Risk
Transactions in Options carry a high degree of risk. Purchasers and sellers of Options should familiarize themselves with the type of Options (i.e. put or call) which they contemplate trading and the associated risks. The Client should calculate the extent to which the value of the options must increase for the Client's position to become profitable, taking into account the premium and all transaction costs.

The purchaser of Options may offset or exercise the Options or allow the Options to expire. The exercise of an Options results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the Options is on a Futures Contract, the purchaser will acquire a Futures position with associated liabilities for margin (see the section on Futures above). If the purchased Options expire worthless, the Client will suffer a total loss of the Client's investment which will consist of the Options premium plus transaction costs. If the Client is contemplating purchasing deep-out-of-the-money Options, the Client should be aware that the chance of such Options becoming profitable ordinarily is remote.

Selling (‘writing’ or ‘granting’) Options generally entails considerably greater risk than purchasing Options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavorably against him. The seller will also be exposed to the risk of the purchaser exercising the Options and the seller will be obligated to either settle the Options in cash or to acquire or deliver the underlying interest. If the Options is on a Futures Contract, the seller will acquire a position in a Futures Contract with associated liabilities for margin (see the section on Futures above). If the Options is ‘covered’ by the seller holding a corresponding position in the underlying interest or a Futures Contract or another Options, the risk may be reduced. If the Options is not covered, the risk of loss can be unlimited.

Certain exchanges in some jurisdictions permit deferred payment of the Options premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the Options is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

Risks Common to Futures and Options
Terms and Conditions of Contracts
The Client should ask ESL about the terms and conditions of the specific Futures or Options which the Client is trading and associated obligations (e.g. the circumstances under which the Client may become obliged to make or take delivery of the underlying interest of a Futures Contract and, in respect of Options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an Options) may be modified by the exchange or Clearing House to reflect changes in the underlying interest.

Suspension or Restriction of Trading and Pricing Relationships
Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or ‘circuit breakers’) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If the Client has sold Options, this may increase the risk of loss.

Further, normal pricing relationships between the underlying interest and the Futures, and the underlying interest and the Options may not exist. This can occur when, for example, the Futures Contract underlying the Options is subject to price limits while the Options is not. The absence of an underlying reference price may make it difficult to judge ‘fair’ value.

Deposited Cash and Property
The Client should familiarize himself with the protections given to money or other property the Client deposits for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which the Client may recover the Client’s money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as the Client’s own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.

Commission and Other Charges
Before the Client begins to trade, the Client should obtain a clear explanation of all commission, fees and other charges for which the Client will be liable. These charges will affect the Client’s net profit (if any) or increase the Client’s loss.

Transactions in Other Jurisdictions
Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose the Client to additional risk. Such markets may be subject to regulation which may offer different or diminished investor protection. Before trade, the Client should enquire about any rules relevant to the Client’s particular transactions. The Client’s local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where the Client’s transactions have been effected. The Client should ask ESL for details about the types of redress available in both the Client’s home jurisdiction and other relevant jurisdictions before the Client starts to trade.

Currency Risk
The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in the Client’s 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.

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. The Client’s ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the exchange, the clearing house and/or participant firms. Such limits may vary: the Client should ask ESL for details in this respect.

Electronic Trading
Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If the Client undertakes transactions on an electronic trading system, the Client 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 the Client’s order is either not executed according to the Client’s instructions or is not executed at all.

Off-Exchange Transactions
In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off-exchange transactions. ESL may be acting as the Client’s 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 the Client undertakes such transactions, the Client should familiarize himself with applicable rules and attendant risks.