The following risk disclosure statements do not disclose or discuss all the risks or other important factors. Given the risks involved, you should enter into transactions only after you have understood the nature of the transactions, the contractual relationships you are going to enter into as well as the nature and extent of the risks you shall take. You should also consider whether the transactions are suitable to you in light of your investment experience, objectives, financial resources and other relevant factors or conditions. Notwithstanding the general risk warnings made by Victory Securities (Global) Limited (“VSGL”), VSGL does not and may not be deemed as your financial adviser. You should consult your independent legal, tax and financial advisers before entering into any transactions.

Risk of Securities Transactions

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 to incur losses as to gain profits when buying and selling securities. You should understand the risks of investment in stock market before making any investment decisions. You shall also assess your abilities and willingness in taking such risks. You are also advised to seek the independent financial advice if they wish.

Risk of Trading Nasdaq - Amex Securities at the Stock Exchange of Hong Kong Limited

The securities under the Nasdaq-Amex Pilot Program (PP) are aimed at sophisticated investors. You should consult VSGL 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 Growth Enterprise Market Stocks

(1)  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.

(2)  You should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.

(3)  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 gazetted newspapers. Accordingly, you acknowledge that you need to have access to up-to-date information on GEM companies as published on the GEM website.

(4)  You should seek independent professional advice if you are uncertain of or have not understood any aspect of this risk disclosure statements or the nature and risks involved in the trading of GEM stocks.

RISK OF TRADING US EXCHANGE-LISTED OR OVER-THE-COUNTER(OTC) SECURITIES OR DERIVATIVES

You should understand the US rules applicable to trades in security or security-like instrument in markets governed by US law before undertaking any such trading. US law could apply to trading in US markets irrespective of the law applicable in your home jurisdiction.

Many (but by no means all) stocks, bonds and options are listed and traded on US stock exchanges. NASDAQ, which used to be an OTC market among dealers, has now also become a US exchange. For exchange-listed stocks, bonds and options, each exchange promulgates rules that supplement the rules of the US Securities & Exchange Commission (“SEC”) for the protection of individuals and institutions trading in the securities listed on the exchange.

OTC trading among dealers can continue in exchange-listed instruments and in instruments that are not exchange-listed at all. For securities that are not listed on any exchange, trading can continue through the OTC bulletin board or through the inter-dealer “pink sheets” that carry representative (not actual) dealer quotes. These facilities are outside of NASDAQ.

Options on securities are subject to SEC rules and the rules of any securities exchange on which the options are listed. Options on futures contracts on commodities like wheat or gold are governed by rules of the US Commodity Futures Trading Commission (“CFTC”). There are also commercial options, like options on real estate, that are governed neither by SEC nor CFTC rules.