China Stock Connect

1. What are the risks associated with the trading of China Connect Securities?

Risks associated with the trading of China Connect Securities include

  - Differences in trading day and trading hours as the Stock Connect will only open on days when both the Mainland and Hong Kong stock markets are open for trading
  - No protection by Investor Compensation Fund
  - Situations when buying is not allowed, i.e. when A-shares are being removed from the list of eligible stocks under the stock Connect.
  - Restrictions on selling imposed by front-end monitoring. Investors must sell certain A-shares to their brokerage firms before the market opens on the day of selling (T day) if they wish to sell certain A-shares that they hold outside of brokerage firms.

Investors are advised to be cautious about their decisions and ensure they have sufficient knowledge and understanding before engaging in any investment products.

2. What power does the SEHK have over my right to trade A-shares on the China Connect Serviceandthe disclosure of my personal data?

SEHK has the power to not extend the China Connect Service provided to you and the power to require China Connect Exchange Participants ("Participants") to not accept instructions from you. If the Rules or the disclosure and other obligations referred to in the Rules are breached, SSE or SZSE has the power to carry out investigations, and may, through the Exchange or the SEHK Subsidiary, require Participants to provide relevant information and materials including the information and personal data of their clients and other persons to assist in its investigation for regulatory and enforcement purposes.

3. What are the procedures for selling China Connect Securities held in a Special Segregated Account ("SPSA")?

Upon receiving instructions,CSL will ensure that you have been assigned to a SPSA and an investor identification number by CCASS to the Special Segregated Account. You must also have sufficient China Connect Securities in the SPSA to settle the delivery obligations on the settlement day and, if the SPSA order is executed, the relevant China Connect Securities will be delivered to it or its CCASS General Clearing Participantfor settlement.

4. Is there any Short Selling, Stock Borrowing and Lending and Margin services for Shanghai Stock Connect or Shenzhen Stock Connect (i.e. A shares)?

Our company does not provide the mentioned services on Shanghai Stock Connect and Shenzhen Stock Connect.