HSBC HK Easy Invest

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Risk Disclosure

Stocks

• Investment involves risk. You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial resources and relevant circumstances. The price of stocks may move up or down. Losses may be incurred as well as profits made as a result of buying and selling stocks.
• The Bank does not provide investment advice. Investment involves risk. The price of stocks may move up or down. Losses may be incurred as well as profit made as a result of buying and selling stocks.

China A Shares

• Investment in China A Shares through Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect involves risks. You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial resources and relevant circumstances. The price of securities may move up or down. Losses may be incurred and profits may be made as a result of buying and selling securities.

Pre-Trade Checking

• You must ensure that there are sufficient available shares in your account to cover any proposed sell order under Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect. Otherwise, your sell order may be rejected.

Settlement

• Northbound trades will follow the A share settlement cycle of the relevant Mainland market, where settlement of shares will occur on T day free of payment, and settlement of funds will be effected on T+1 day.
• Although the transfer of shares precedes the transfer of cash under Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, title to the shares will not be released until receipt of confirmation of payment (normally on T+1 day). Where the purchase is pre-funded (by way of a debit of cash in your account and a corresponding cash prepayment by the Bank to HKSCC), shares may be released on T day.

Quota Restrictions

• As at May 2018, the Daily Quota (which limits the net value of Northbound buy trades on each trading day) is set at RMB 52 billion for each China A Share market. The Aggregate Quota and/or the Daily Quota may be revised by the PRC authorities from time to time without prior notice.
• As a result of the quota restrictions, there is no assurance that a buy order can be successfully placed through Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect.

Restriction on Day Trading

• If you buy shares on T day, you may be able to sell only on or after settlement of the buy trade has been completed (normally on T+1 day).

Disclosure of Interests

• If you hold or control 5% or more* of the issued shares of a PRC listed company, you must disclose such interest.
• If there is any change in your shareholding of 5% or more*, or if a change results in your shareholding falling below 5%, you also have disclosure obligations.

Short Swing Profit Rule

• If you own 5% or more* of the issued shares of a PRC listed company, you must return to the company any profit made from a sale of shares within six months of the purchase thereof (or vice versa).

Foreign Ownership Limits

• A single foreign investor's shareholding in a PRC listed company must not exceed 10%. The aggregate of all foreign investors' shareholding in a PRC listed company must not exceed 30%. The foreign ownership limits may have an adverse effect on the liquidity and performance of an investment in China A Shares. As a result, you may suffer losses through your trading or investment in China A Shares.
• *Calculated on an aggregate basis, i.e., across both domestically and overseas issued shares of the PRC listed company, whether the relevant holdings are through Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, QFII/RQFII regime or other investment channels.

Renminbi related products Risk Disclosure

• There may be exchange rate risks if you choose to convert payments made on securities/bonds/CDs to your home currency.
• RMB products may suffer significant losses in liquidating the underlying investments if such investments do not have an active secondary market and their prices have large bid/offer spreads.
• In general, RMB equity products are exposed to the usual kind of default risks that might be associated with equity products denominated in other currencies.

This document does not set out all the key risks to Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect. For further information, you should refer to the risk disclosures and other terms set out in (i) China A Shares Service Factsheet - Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect Product Fact Sheet and (ii) the China Connect / Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect Terms and Conditions.
The information contained in this material has not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.
The information in this material does not constitute a solicitation for making any deposit or an offer for the purchase or sale or investment in any products.