Important Risk Warnings
Investors should note that investment involves risks. 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.
Investors should note that investing in different
Renminbi-denominated securities and products involves different
risks (including but are not limited to currency risk, exchange
rate risk, credit risk of issuer / counterparty, interest rate
risk, liquidity risk (where appropriate)). The key risks of
investing in securities via the Stock Connect Northbound Trading
include:
-
Once the respective quota is used up, trading will be affected
or will be suspended.
-
Stock Connect Northbound Trading will only operate on days
when both markets are open for trading. Investors should take
note of the days the Stock Connect Northbound Trading is open
for business and decide according to their own risk tolerance
whether or not to take on the risk of price fluctuations in
securities during the time when Stock Connect Northbound
Trading is not trading.
-
When a security is recalled from the scope of eligible
securities for trading via Stock Connect Northbound Trading,
that security can only be sold but NOT bought.
-
Investors will be exposed to currency risk if conversion of
the local currency into RMB is required.
Foreign securities carry additional risks not generally
associated with securities in the domestic market. The value or
income (if any) of foreign securities may be more volatile and
could be adversely affected by changes in many factors. 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.
Investors should note that ETF is different from a typical unit
trust and many factors will affect its performance. In general,
the market price per ETF unit may be significantly higher or
lower than its net asset value per unit due to market demand and
supply, liquidity, and scale of trading spread in the secondary
market and will fluctuate during the trading day. ETF is
different from stocks, investors should read the offering
documents of the relevant ETF and understand the features and
risks of ETF etc.
Investors should not only base on this material alone to make
any investment decision, but should read in detail the relevant
risk disclosure statements.
(Picture is for reference only)
