Common use of Trading of CBBC close to Call Price Clause in Contracts

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 may still be 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 MC E 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 Trades), 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 CBB C 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 autom atic suspension of the CBBC by AMS/3. For Category R CBBC, valuation of the residual value will be determined on the valuation da y according to the terms in the listing documents

Trading of CBBC close to Call Price. When the underlying asset is trading close to the Call Pricecall 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 may still be executed and confirmed by the investors Exchange participants after the MCE Mandatory Call Event (“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 recognised 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 Pricecall 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 MC E Trades to the relevant RISKS OF TRADING IN SYNTHETIC EXCHANGE TRADED FUNDS (“ETFs”) Unlike traditional Exchange Participants traded Funds (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 Trades“ETFs”), Synthetic ETFs do not buy the investors may check with assets in their brokersbenchmark. CBBC with overseas underlying Instead, they typically invest in financial derivative instruments to replicate the benchmark’s performance. Investment in Synthetic ETFs involves high risk and is not suitable for every investor. Investors should understand and consider the following risks before trading Synethetic ETFs. 1. Market Risk ETFs are typically designed to track the performance of certain indices, market sectors, or group of assets such as stocks, bonds, or commodities. Investors trading CBBC with overseas underlying assets are exposed to an exchange rate the political, economic, currency and other risks related to the ETF’s underlying index/assets it is tracking. Investment must be prepared to bear the risk as of loss and volatility associated with the price and cash settlement amount underlying index/asset. 2. Counterparty Risk Where a Synthetic ETF invests in derivatives to replicate the index performance, investors are exposed to the credit risk of the CBBC counterparties who issued the derivatives, in addition to the risks relating to the index, Further, potential contagion and concentration risks of the derivatives issuers should be taken into account (e.g. since derivative issuers are converted from predominantly international financial institutions, the failure of one derivative counterparty of Synthetic ETF may have a foreign currency into Hong Kong dollars“knock-on” effect on other derivative counterparties of the Synthetic ETFs). Exchange rates between currencies are determined by forces of supply and demand in Some Synthetic ETFs have collateral to reduce the foreign exchange markets which are affected by various factors. Besidescounterparty risk, CBBC issued on overseas underlying assets but there may be called outside a risk that the Exchange’s trading hours. In such case, the CBB C 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 market value of the MCE. There will be no autom atic suspension of collateral has fallen substantially when the CBBC by AMS/3. For Category R CBBC, valuation of Synthetic ETF seeks to realise the residual value will be determined on the valuation da y according to the terms in the listing documentscollateral.

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 may still be 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 MC E 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 Trades)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 CBB C 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 autom atic automatic suspension of the CBBC by AMS/3. For Category R CBBC, valuation of the residual value will be determined on the valuation da y day according to the terms in the listing documents.

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 may still be 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 MC E 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 Trades), 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 CBB C 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 autom atic automatic suspension of the CBBC by AMS/3. For Category R CBBC, valuation of the residual value will be determined on the valuation da y day according to the terms in the listing documents

Trading of CBBC close to Call Price. When the underlying asset is trading close to the Call Pricecall 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 may still be executed and confirmed by the investors Exchange participants after the MCE Mandatory Call Event (“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 recognised 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 Pricecall price. Issuers will announce For more information on warrants and CBBCs, please visit the exact call time within 1 hour after HKEx corporate website: Derivative Warrants, Products & Services Section (▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇/eng/prod/secprod/dwrc/dw.htm) Callable Bull/Bear Contracts, Products & Services Section (▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇/eng/prod/secprod/cbbc/Intro.htm) Unlike traditional Exchange traded Funds (“ETFs”), Synthetic ETFs do not buy the trigger assets in their benchmark. Instead, they typically invest in financial derivative instruments to replicate the benchmark’s performance. Investment in Synthetic ETFs involves high risk and is not suitable for every investor. Investors should understand and consider the following risks before trading Synethetic ETFs. ETFs are typically designed to track the performance of MCEcertain indices, market sectors, or group of assets such as stocks, bonds, or commodities. Investors are exposed to the political, economic, currency and other risks related to the ETF’s underlying index/assets it is tracking. Investment must be prepared to bear the risk of loss and volatility associated with the underlying index/asset. Where a Synthetic ETF invests in derivatives to replicate the index performance, investors are exposed to the credit risk of the counterparties who issued the derivatives, in addition to the risks relating to the index, Further, potential contagion and concentration risks of the derivatives issuers should be taken into account (e.g. since derivative issuers are predominantly international financial institutions, the failure of one derivative counterparty of Synthetic ETF may have a “knock-on” effect on other derivative counterparties of the Synthetic ETFs). Some Synthetic ETFs have collateral to reduce the counterparty risk, but there may be a risk that the market value of the collateral has fallen substantially when the Synthetic ETF seeks to realise the collateral. There is no assurance that a liquid market exists for an ETF. A higher liquidity risk is involved if a Synthetic ETF involves derivatives which do not have an active secondary market. Wider bid-offer spreads in the price of derivatives may result in losses. Therefore, they can be more difficult costly to unwind early, when the instruments provide access to a restricted market where liquidity is limited. There may be disparity between the performance of the ETFs and the performance of the underlying index due to, for instance, failure of the tracking strategy, currency differences, fees and expenses. Where the index/ market that the ETF tracks is subject to restricted access, the efficiency in unit creation or redemption to keep the price of the ETFs in line with its net asset value (NAV) may be disrupted, causing the ETF to trade at a higher premium or discount to is NAV. Investors who buy an ETF at a premium may not be able to recover the premium in the event of termination. Investors trading ETFs with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate risk. Currency rate fluctuations can adversely affect the underlying asset value, also affecting the ETFs price. L&I Products are issued in the form of Exchange traded Funds (“ETFs”) as a type of collective investment schemes but they are in fact derivative products. Leveraged Products typically aim to deliver a daily return equivalent to a multiple of the underlying index return that they track. Inverse Products typically aim to deliver the opposite of the daily return of the underlying index that they track. In overseas markets, they are commonly known as Leveraged and/ or Inverse ETFs. To produce the specified leveraged or inverse return, L&I Products have to rebalance their portfolios, typically on a daily basis. As such, they do not share the buy-to-hold characteristics of conventional ETFs. Investors should understand how the performance of L&I Products is likely to be affected when they are held for more than one trading day and its compounding effect. They should be aware that any small variation in the underlying index return may have a large effect on the value of the product you hold. Investors should note the following salient features about L&I Products: - It is not advisable to hold L&I Products for longer than the rebalancing interval, typically one day; - L&I Products are designed as a trading tool for short-term market timing or hedging purposes, and HKEx are not intended for long term investment; - L&I Products are only suitable for sophisticated trading-oriented investors who constantly monitor the performance of their holdings on a daily basis; and - the performance of L&I Products, when held overnight, may deviate from the underlying indices. The risk of loss in trading in L&I Products is substantial. In particular, they are not suitable for investors who are unfamiliar with the features and risks of L&I Products, as they are designed for daily investment results, and/or investors who are looking for a long-term investment and cannot actively monitor their holdings. Therefore, L&I Products are normally not suitable for many members of the public who wish to invest in collective investment schemes or ETFs as a low risk exchange-listed product in order to diversify their investment risks. The regulatory authorities have, taking into account their special risk profile, prohibited and/ or discouraged the use of margin finance for investment in L&I Products. Investors must carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. Whilst they are listed, there is no assurance that a liquid market always exists for the L&I Products concerned. A higher liquidity risk is involved if the product involves derivatives which do not have an active secondary market. Wider bid-offer spreads in the price of the products may result in losses. Therefore, they can be more difficult and costly to unwind early, when the instruments provide access to a restricted market where liquidity is limited. There may be disparity between the performance of the L&I Product concerned and the performance of the underlying indices due to, for instance, failure of the tracking strategy, currency differences, fees and expenses. L&I Products may currently be traded, cleared and settled in Hong Kong dollars, Renminbi and/or US dollars. Investors trading with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate risk. Currency rate fluctuations can adversely affect the underlying asset value, also affecting the product price. Like ETFs, the risk of L&I Products can include counterparty risk, market risk, tracking errors, trading at discount or premium, and liquidity risk. The specific risks presented by L&I Products necessarily depend upon the terms of the issued product and your circumstances. In general, however, they all involve some combination of market risk, credit risk, funding risk and operational risk. 1. Market risk is the risk that the value of a transaction will also send be adversely affected by fluctuations in the list level or volatility of Post MC E Trades or correlation or relationship between one or more market prices, rates or indices or other market factors or by illiquidity in the market for the relevant transaction or in a related market. 2. Credit risk is the risk that a counterparty will fail to perform its payment or other obligations when due. 3. Funding risk is the risk that, as a result of mismatches or delays in the timing of cash flows due from or to the counterparties in the relevant transaction in question or related hedging, trading, collateral or other transactions, the parties or a party to the relevant Exchange Participants (brokers) who in turn transactions will inform their clients accordingly. For avoidance of doubt on whether their trades not have been cancelled (i.e. whether they are Post MCE Trades), the investors may check with their brokers. CBBC with overseas underlying assets Investors trading CBBC with overseas underlying assets are exposed adequate cash available 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 CBB C 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 autom atic suspension of the CBBC by AMS/3. For Category R CBBC, valuation of the residual value will be determined on the valuation da y according to the terms in the listing documentsfund current obligations.

Trading of CBBC close to Call Price. When the underlying asset is trading close to the Call Pricecall 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 may still be executed and confirmed by the investors Exchange participants after the MCE Mandatory Call Event (“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 recognised 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 Pricecall price. Issuers will announce For more information on Warrants and CBBCs, please visit the exact call time within 1 hour after HKEx corporate website: Derivative Warrants, Products & Services Section (▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇/eng/prod/secprod/dwrc/dw.htm) Callable Bull/Bear Contracts, Products & Services Section (▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇/eng/prod/secprod/cbbc/Intro.htm) Unlike traditional Exchange traded Funds (“ETFs”), Synthetic ETFs do not buy the trigger assets in their benchmark. Instead, they typically invest in financial derivative instruments to replicate the benchmark’s performance. Investment in Synthetic ETFs involves high risk and is not suitable for every investor. Investors should understand and consider the following risks before trading Synethetic ETFs. ETFs are typically designed to track the performance of MCEcertain indices, market sectors, or group of assets such as stocks, bonds, or commodities. Investors are exposed to the political, economic, currency and other risks related to the ETF’s underlying index/assets it is tracking. Investment must be prepared to bear the risk of loss and volatility associated with the underlying index/asset. Where a Synthetic ETF invests in derivatives to replicate the index performance, investors are exposed to the credit risk of the counterparties who issued the derivatives, in addition to the risks relating to the index, Further, potential contagion and concentration risks of the derivatives issuers should be taken into account (e.g. since derivative issuers are predominantly international financial institutions, the failure of one derivative counterparty of Synthetic ETF may have a “knock-on” effect on other derivative counterparties of the Synthetic ETFs). Some Synthetic ETFs have collateral to reduce the counterparty risk, but there may be a risk that the market value of the collateral has fallen substantially when the Synthetic ETF seeks to realise the collateral. There is no assurance that a liquid market exists for an ETF. A higher liquidity risk is involved if a Synthetic ETF involves derivatives which do not have an active secondary market. Wider bid-offer spreads in the price of derivatives may result in losses. Therefore, they can be more difficult costly to unwind early, when the instruments provide access to a restricted market where liquidity is limited. There may be disparity between the performance of the ETFs and the performance of the underlying index due to, for instance, failure of the tracking strategy, currency differences, fees and expenses. Where the index/ market that the ETF tracks is subject to restricted access, the efficiency in unit creation or redemption to keep the price of the ETFs in line with its net asset value (NAV) may be disrupted, causing the ETF to trade at a higher premium or discount to is NAV. Investors who buy an ETF at a premium may not be able to recover the premium in the event of termination. Investors trading ETFs with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate risk. Currency rate fluctuations can adversely affect the underlying asset value, also affecting the ETFs price. L&I Products are issued in the form of Exchange traded Funds (“ETFs”) as a type of collective investment schemes but they are in fact derivative products. Leveraged Products typically aim to deliver a daily return equivalent to a multiple of the underlying index return that they track. Inverse Products typically aim to deliver the opposite of the daily return of the underlying index that they track. In overseas markets, they are commonly known as Leveraged and/ or Inverse ETFs. To produce the specified leveraged or inverse return, L&I Products have to rebalance their portfolios, typically on a daily basis. As such, they do not share the buy-to-hold characteristics of conventional ETFs. Investors should understand how the performance of L&I Products is likely to be affected when they are held for more than one trading day and its compounding effect. They should be aware that any small variation in the underlying index return may have a large effect on the value of the product you hold. Investors should note the following salient features about L&I Products: - It is not advisable to hold L&I Products for longer than the rebalancing interval, typically one day; - L&I Products are designed as a trading tool for short-term market timing or hedging purposes, and HKEx are not intended for long term investment; - L&I Products are only suitable for sophisticated trading-oriented investors who constantly monitor the performance of their holdings on a daily basis; and - the performance of L&I Products, when held overnight, may deviate from the underlying indices. The risk of loss in trading in L&I Products is substantial. In particular, they are not suitable for investors who are unfamiliar with the features and risks of L&I Products, as they are designed for daily investment results, and/or investors who are looking for a long-term investment and cannot actively monitor their holdings. Therefore, L&I Products are normally not suitable for many members of the public who wish to invest in collective investment schemes or ETFs as a low risk exchange-listed product in order to diversify their investment risks. The regulatory authorities have, taking into account their special risk profile, prohibited and/ or discouraged the use of margin finance for investment in L&I Products. Investors must carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. Whilst they are listed, there is no assurance that a liquid market always exists for the L&I Products concerned. A higher liquidity risk is involved if the product involves derivatives which do not have an active secondary market. Wider bid-offer spreads in the price of the products may result in losses. Therefore, they can be more difficult and costly to unwind early, when the instruments provide access to a restricted market where liquidity is limited. There may be disparity between the performance of the L&I Product concerned and the performance of the underlying indices due to, for instance, failure of the tracking strategy, currency differences, fees and expenses. L&I Products may currently be traded, cleared and settled in Hong Kong dollars, Renminbi and/or US dollars. Investors trading with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate risk. Currency rate fluctuations can adversely affect the underlying asset value, also affecting the product price. Like ETFs, the risk of L&I Products can include counterparty risk, market risk, tracking errors, trading at discount or premium, and liquidity risk. The specific risks presented by L&I Products necessarily depend upon the terms of the issued product and your circumstances. In general, however, they all involve some combination of market risk, credit risk, funding risk and operational risk. 1. Market risk is the risk that the value of a transaction will also send be adversely affected by fluctuations in the list level or volatility of Post MC E Trades or correlation or relationship between one or more market prices, rates or indices or other market factors or by illiquidity in the market for the relevant transaction or in a related market. 2. Credit risk is the risk that a counterparty will fail to perform its payment or other obligations when due. 3. Funding risk is the risk that, as a result of mismatches or delays in the timing of cash flows due from or to the counterparties in the relevant transaction in question or related hedging, trading, collateral or other transactions, the parties or a party to the relevant Exchange Participants (brokers) who in turn transactions will inform their clients accordingly. For avoidance of doubt on whether their trades not have been cancelled (i.e. whether they are Post MCE Trades), the investors may check with their brokers. CBBC with overseas underlying assets Investors trading CBBC with overseas underlying assets are exposed adequate cash available 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 CBB C 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 autom atic suspension of the CBBC by AMS/3. For Category R CBBC, valuation of the residual value will be determined on the valuation da y according to the terms in the listing documentsfund current obligations.

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 may still be 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 MC E 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 Trades), 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 CBB C 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 autom atic suspension of the CBBC by AMS/3. For Category R CBBC, valuation of the residual value will be determined on the valuation da y according to the terms in the listing documents

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 may still be 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 SEHK will also send the list of Post MC E MCE Trades to the relevant Exchange Participants 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 Trades), 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 ExchangeSEHK’s trading hours. In such case, the CBB C CBBC will be terminated from trading on the Exchange SEHK in the next trading session or soon after the issuer has notified the Exchange SEHK about the occurrence of the MCE. There will be no autom atic automatic suspension of the CBBC by AMS/3. For Category R CBBC, valuation of the residual value will be determined on the valuation da y day according to the terms in the listing documents.

Trading of CBBC close to Call Price. When the underlying asset is trading close to the Call Pricecall 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 may still be executed and confirmed by the investors Exchange participants after the MCE Mandatory Call Event (“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 MC E Trades to the relevant Exchange Participants (brokers) who in turn will inform their clients accordinglyprice. For avoidance of doubt more information on whether their trades have been cancelled Warrants and CBBCs, please visit the HKEx corporate website: Derivative Warrants, Products & Services Section (i.e. whether they are Post MCE Trades▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇/eng/prod/secprod/dwrc/dw.htm) Callable Bull/Bear Contracts, Products & Services Section (▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇/eng/prod/secprod/cbbc/Intro.htm) Unlike traditional Exchange traded Funds (“ETFs”), Synthetic ETFs do not buy the investors may check with assets in their brokersbenchmark. CBBC with overseas underlying Instead, they typically invest in financial derivative instruments to replicate the benchmark’s performance. Investment in Synthetic ETFs involves high risk and is not suitable for every investor. Investors should understand and consider the following risks before trading Synthetic ETFs. ETFs are typically designed to track the performance of certain indices, market sectors, or group of assets such as stocks, bonds, or commodities. Investors trading CBBC with overseas underlying assets are exposed to the political, economic, currency and other risks related to the ETF’s underlying index/assets it is tracking. Investment must be prepared to bear the risk of loss and volatility associated with the underlying index/asset. Where a Synthetic ETF invests in derivatives to replicate the index performance, investors are exposed to the credit risk of the counterparties who issued the derivatives, in addition to the risks relating to the index, Further, potential contagion and concentration risks of the derivatives issuers should be taken into account (e.g. since derivative issuers are predominantly international financial institutions, the failure of one derivative counterparty of Synthetic ETF may have a “knock-on” effect on other derivative counterparties of the Synthetic ETFs). Some Synthetic ETFs have collateral to reduce the counterparty risk, but there may be a risk that the market value of the collateral has fallen substantially when the Synthetic ETF seeks to realize the collateral. There is no assurance that a liquid market exists for an ETF. A higher liquidity risk is involved if a Synthetic ETF involves derivatives which do not have an active secondary market. Wider bid-offer spreads in the price of derivatives may result in losses. Therefore, they can be more difficult costly to unwind early, when the instruments provide access to a restricted market where liquidity is limited. There may be disparity between the performance of the ETFs and the performance of the underlying index due to, for instance, failure of the tracking strategy, currency differences, fees and expenses. Where the index/ market that the ETF tracks is subject to restricted access, the efficiency in unit creation or redemption to keep the price of the ETFs in line with its net asset value (NAV) may be disrupted, causing the ETF to trade at a higher premium or discount to is NAV. Investors who buy an ETF at a premium may not be able to recover the premium in the event of termination. Investors trading ETFs with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate risk. Currency rate fluctuations can adversely affect the underlying asset value, also affecting the ETFs price. The risk of loss in trading in options is substantial. In some circumstances, you may sustain losses in excess of your initial margin funds. Placing contingent orders, such as the price and cash settlement amount of the CBBC are converted from a foreign currency into Hong Kong dollars“stop-loss” or“stop-limit” orders, will not necessarily avoid loss. Exchange rates between currencies are determined by forces of supply and demand in the foreign exchange markets which are affected by various factorsMarket conditions may make it impossible to execute such orders. Besides, CBBC issued on overseas underlying assets You may be called outside upon at short notice to deposit additional margin funds. If the Exchange’s required funds are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore study and understand options before you trade and carefully consider whether such trading hoursis suitable in the light of your own financial position and investment objectives. If you trade options you should inform yourself of exercise and expiration procedures and your rights and obligations upon exercise or expiry. This brief statement does not disclose all of the risks and other significant aspects of trading in options. In such case, the CBB C 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 light of the MCE. There will be no autom atic suspension risks, you should undertake such transactions only if you understand the nature of the CBBC by AMS/3contracts (and contractual relationships) into which you are entering and the extent of your exposure to risk. For Category R CBBC, valuation Trading in options is not suitable for many members of the residual value will be determined on the valuation da y according to the terms public. You should carefully consider whether trading is appropriate for you in the listing documentslight of your experience, objectives, financial resources and other relevant circumstances. 1. Variable degree of risk 2. Terms and conditions of contracts

Trading of CBBC close to Call Price. When the underlying asset is trading close to the Call Pricecall 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 may still be executed and confirmed by the investors Exchange participants after the MCE Mandatory Call Event (“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 MC E Trades to the relevant Exchange Participants (brokers) who in turn will inform their clients accordinglyprice. For avoidance of doubt more information on whether their trades have been cancelled Warrants and CBBCs, please visit the HKEx corporate website: Derivative Warrants, Products & Services Section (i.e. whether they are Post MCE Trades▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇/eng/prod/secprod/dwrc/dw.htm) Callable Bull/Bear Contracts, Products & Services Section (▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇/eng/prod/secprod/cbbc/Intro.htm) Unlike traditional Exchange traded Funds (“ETFs”), Synthetic ETFs do not buy the investors may check with assets in their brokersbenchmark. CBBC with overseas underlying Instead, they typically invest in financial derivative instruments to replicate the benchmark’s performance. Investment in Synthetic ETFs involves high risk and is not suitable for every investor. Investors should understand and consider the following risks before trading Synthetic ETFs. ETFs are typically designed to track the performance of certain indices, market sectors, or group of assets such as stocks, bonds, or commodities. Investors trading CBBC with overseas underlying assets are exposed to the political, economic, currency and other risks related to the ETF’s underlying index/assets it is tracking. Investment must be prepared to bear the risk of loss and volatility associated with the underlying index/asset. Where a Synthetic ETF invests in derivatives to replicate the index performance, investors are exposed to the credit risk of the counterparties who issued the derivatives, in addition to the risks relating to the index, Further, potential contagion and concentration risks of the derivatives issuers should be taken into account (e.g. since derivative issuers are predominantly international financial institutions, the failure of one derivative counterparty of Synthetic ETF may have a “knock-on” effect on other derivative counterparties of the Synthetic ETFs). Some Synthetic ETFs have collateral to reduce the counterparty risk, but there may be a risk that the market value of the collateral has fallen substantially when the Synthetic ETF seeks to realize the collateral. There is no assurance that a liquid market exists for an ETF. A higher liquidity risk is involved if a Synthetic ETF involves derivatives which do not have an active secondary market. Wider bid-offer spreads in the price of derivatives may result in losses. Therefore, they can be more difficult costly to unwind early, when the instruments provide access to a restricted market where liquidity is limited. There may be disparity between the performance of the ETFs and the performance of the underlying index due to, for instance, failure of the tracking strategy, currency differences, fees and expenses. Where the index/ market that the ETF tracks is subject to restricted access, the efficiency in unit creation or redemption to keep the price of the ETFs in line with its net asset value (NAV) may be disrupted, causing the ETF to trade at a higher premium or discount to its NAV. Investors who buy an ETF at a premium may not be able to recover the premium in the event of termination. Investors trading ETFs with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate risk risk. Currency rate fluctuations can adversely affect the underlying asset value, also affecting the ETFs price. Any communication or transaction via or information (including any document) transmitted via the internet or other electronic medium involves risks and you understand and accept the following risks: 1. The internet or other electronic media (including without limitation electronic devices, services of third party telecom service providers such as mobile phones or other handheld trading devices or interactive voice response systems) are an inherently unreliable form of communication, and that such unreliability is beyond Broker’s control. 2. Information (including any document) transmitted or communication or transactions over the internet or through other electronic media (including without limitation electronic devices, services of third party telecom service providers such as mobile phones or other handheld trading devices or interactive voice response systems) may be subject to interruption, transmission blackout, delayed transmission due to data volume or incorrect data transmission (including without limitation incorrect price and cash settlement amount quotation) or stoppage of price data feed due to the public nature of the CBBC are converted from internet or other electronic media. 3. As a foreign currency into Hong Kong dollars. Exchange rates between currencies are determined by forces result of supply and demand such unreliability, there may be time-lags or delays or failures or loss of data or loss of confidentiality in the foreign exchange markets which are affected by various factors. Besides, CBBC issued on overseas underlying assets transmission of data and receipt of instructions may be called outside executed at prices different from those prevailing at the Exchange’s trading hourstime the instructions were given. In such caseThere are substantial risks in allowing an Authorized Third Party to trade or operate your account, the CBB C will and it is possible that instructions could be terminated from trading on the Exchange in the next trading session or soon after the issuer has notified the Exchange about the occurrence given by persons not properly authorized. You accept all of the MCE. There will be no autom atic suspension risks of the CBBC such an operation and irrevocably releases Broker from all liabilities arising out of or in connection with such instructions, whether taken by AMS/3. For Category R CBBC, valuation of the residual value will be determined on the valuation da y according to the terms in the listing documentsBroker or otherwise.