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RISK DISCLOSURE

Risks associated with Internet

 

The Internet is an inherently unreliable and insecure medium of data transmission. Accordingly, there are risks in trading on-line, conducting transactions or otherwise communicating through the Internet.

 

In particular, access to this website and the services provided through this website may at any time and from time to time be limited, delayed or unavailable, including during periods of peak demand, market volatility, systemic failures (including hardware or software failures), systems upgrades or maintenance or for other reasons. Without prejudice to the foregoing:

 

Transactions conducted through the Internet may be subject to interruption, transmission blackout, delayed transmission due to Internet traffic or incorrect data transmission due to the public nature of the Internet.

 

Counterfeit the website and server of Internet Trading of Fruit Tree Securities Limited using similar domain name (URL) or layout, so as to steal or cheat the personal information of investors. Using reliable client software and performing correct configuration, investors can prevent such fraud, or be warned if fraud is detected.

 

There may be delays, termination, interruption, congestion of data transmission on the Internet due to busy traffic or other causes.

 

Communications and personal data may be accessed by unauthorised third parties. Your instructions may be executed without being subject to human review. The information posted on the website may not be updated immediately and may not reflect transactions not conducted through the website.

 

If the digital certificate and password for authentication are stolen, a third party may imitate the identity of investor(s) to execute transactions over the Internet or to inquire into transactions.

 

Data transmitted through the Internet may be intercepted by anyone, though such unauthorized parties may not understand the authentication of the content. There may be delays in the quotation of price of Hong Kong Stock Exchange, resulting in differences to the real-time price quotation. All securities information published on the Internet, including but not limited to analysis, predictive data, may be erroneous or wilfully mislead. Losses or expenditure resulting from delay in communication, faults, inaccuracy, absence of confidentiality beyond reasonable realm of control of Fruit Tree Securities Limited, are not accounted for by Fruit Tree Securities Limited to any party or entities.

 

Fruit Tree Securities Limited accepts no responsibility to you or anyone else for any loss or expense that may result from delays, failures or inaccuracies in communications, or lack of security, beyond the reasonable control of Fruit Tree Securities Limited.

 

Risk of Securities Trading

 

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.

 

Risk of Trading Growth Enterprise Market Stocks

 

Growth Enterprise Market ("GEM") stocks involve a high investment risk. In particular, companies may list on GEM with neither a track record or profitability nor any obligation to forecast future profitability. GEM stocks may be very volatile and illiquid.

 

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.

 

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.

 

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

 

Risk of providing authority to lend or deposit securities with third parties

 

There is risk if you provide Fruit Tree Securities Limited with an authority that allows Fruit Tree Securities Limited to lend your securities to or deposit them with certain third parties under section 81, 81A or 121AB of the Securities Ordinance (Chapter 333 of the Laws of Hong Kong) and related rules. This is allowed only if you consent in writing. The consent must specify the period for which it is current, which cannot exceed 12 months.

 

You are not required by any law to sign these authorities. But an authority may be required in certain instances, including to facilitate margin lending to you or to allow your securities to be loaned to or deposited as collateral with third parties. Fruit Tree Securities Limited will explain to you the purposes for which one of these authorities is to be used.

 

If you sign one of these authorities and your securities are lent to or deposited with third parties, those third parties will have a lien or charge on your securities. Although your dealer or securities margin financier is responsible to you for your securities lent or deposited under the authority, a default by it could result in the loss of your securities.

 

A cash account not involving securities borrowing and lending is available from Fruit Tree Securities Limited. If you do not require margin facilities or do not wish your securities to be lent or pledged, do not sign the above authority and ask to open a cash account with Fruit Tree Securities Limited instead.

 

Counterparty risk

 

Fruit Tree Securities Limited is a participant of The Stock Exchange of Hong Kong Limited. If Fruit Tree Securities Limited fails to meet its obligations to you, you have the right to claim under the compensation fund established by The Stock Exchange of Hong Kong Limited subject to the terms and conditions applicable to the compensation fund

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