The following information is very important and you should read it carefully before using the Hong Kong Stocks Express Service.
If any of the information contained within this document is unclear or you would like further explanation, please contact your local branch for assistance.
Customers of the Hong Kong Stocks Express Service have the opportunity to trade in four separate and distinct investment types, including shares, warrants, bonds and exchange traded funds.
Buying, selling and investing in shares, warrants, bonds or exchange traded funds is never risk free. The value of shares, warrants, bonds or exchange traded funds listed on the Hong Kong Stock Exchange and the income from them can go down as well as up and you may get back less than the original amount you invested.
What the Hong Kong Stocks Express Service means to you
Under Financial Conduct Authority (FCA) rules you are classed as a Retail Customer under the Hong Kong Stocks Express Service. This means you receive the greatest degree of protection under the present regulatory system in the UK.
Amongst a variety of differences in treatment, Retail Customers are entitled to receive a greater amount of information from Financial Institutions to enable them to make informed choices. Also the Bank of China (UK) Limited has a duty towards Retail Customers to establish whether the Hong Kong Stocks Express Service is appropriate in terms of the Retail Customer’s knowledge and experience. In addition, Retail Customers are entitled to receive compensation through the Financial Services Compensation Scheme in the event of a Financial Institution going out of business (although you should note that services provided by BOCI Securities Limited, a Hong Kong affiliate of Bank of China (UK) Limited which will hold investments which you purchase using the Hong Kong Stocks Express Service, are not covered by any compensation scheme).
General Risk Warnings
• The market information relating to the past performance of an investment is not necessarily a guide to its performance in the future.
• The value of investments or income from them is not necessarily a guide to its performance in the future.
• As stocks and shares are valued from second to second, the price fluctuates continuously.
• The value of shares can go down as well as up and the income derived from share ownership can go down as well as up.
• The value of shares can rise or fall due to the volatility of world markets, interest rates, capital values and changes in the rate of exchange in the currency in which the investments are denominated (for example, Hong Kong dollars).
• Investing in a single country market could increase your exposure to potential volatility.
• You may not necessarily get back any of the amount you have invested.
• All content provided through the Hong Kong Stocks Express Service is only for your personal information and use, and is not intended to address your particular requirements or to be relied upon in making (or refraining from making) any specific investment or other decision. Such content shall not constitute any form of advice or recommendation by us.
• Nothing included in the Hong Kong Stocks Express website constitutes an offer or solicitation to sell investments to anyone in any jurisdiction outside the United Kingdom, in which such an offer or solicitation would actually be unlawful.
Risks associated with investing in Warrants
A warrant is a time limited right to subscribe for shares, debentures, loan stock or government securities and is exercisable against the original issuer of the underlying securities. When a relatively small movement in the price of the underlying securities occurs it can result in a disproportionately large movement up or down in the price of the warrant. So prices of warrants can therefore be very volatile.
• It is essential for anyone who is considering purchasing warrants to understand that the right to subscribe which the warrant confers is invariably limited in time. The consequence being that if the investor fails to exercise this right within the predetermined time scale then the investment becomes worthless.
• You should consider carefully whether warrants are suitable for you in the light of your own circumstances and financial position.
• You should not buy a warrant unless you are prepared to sustain a total loss of the money you have invested plus any commission or other charges.