The following Risk Disclosure Statement may not disclose all the risks involved. The following content is compiled in accordance with the latest information published by regulatory authorities. You should undertake your own research and study before you trade or invest. You should carefully consider whether trading or investment is suitable in light of your own financial position and investment objectives.
Chiyu Banking Corporation Limited (the "Bank") is appointed by fund houses as an agent. The investment fund is a product of fund houses, but not of the Bank. In respect to an eligible dispute (as defined in the Terms of Reference for the Financial Dispute Resolution Centre in relation to the Financial Dispute Resolution Scheme) arising between the Bank and the customer out of the selling process or processing of the related transaction, the Bank is required to enter into a Financial Dispute Resolution Scheme process with the customer; however, any dispute over the contractual terms of the fund product should be resolved directly between the fund house and the customer.
Risk Disclosure of Investment Funds
Investment in Investment Funds involves significant risks. It is impossible to describe every risk associated with such an investment that is relevant to you. Before making your investment decision, you should carefully read the offering documents of the relevant Investment Fund including, in particular, the sections about risks and ensure you fully understand the nature and all the risks associated with an investment in the relevant Investment Fund and are willing to assume such risks.
Investment Funds or services are not equivalent to, nor should they be treated as a substitute for, time deposits. Although investment may bring opportunities for profit, each investment product or service involves potential risks. Due to dynamic changes in the market, the price movement and volatility of investment products may not be what you expect. Your investment funds may increase or decrease due to the purchase or sale of investment products. The value of investment funds may go up as well as down, and the investment funds may become valueless. You may not receive any return from investment funds. You may not be able to liquidate parts of your investment immediately under certain market situation. The investment decision is yours, but you should not invest in these products unless the intermediary who sells them to you has explained to you that these products are suitable for you with regard to your financial situation, investment experience and investment objectives. Investment involves risks. Please refer to the relevant investment fund offering documents for further details, including risk factors. If you have any inquiries on the nature and risks involved in trading or investment funds, etc, you should seek advice from an independent financial adviser.
Conversion Limitation Risk of RMB
RMB investments are subject to exchange rate fluctuations which may provide both opportunities and risks. The fluctuation in the exchange rate of RMB may result in losses in the event that the customer converts RMB into Hong Kong dollar or other foreign currencies. RMB is currently not fully freely convertible. Individual customers can be offered CNH rate to conduct conversion of RMB through bank accounts and may occasionally not be able to do so fully or immediately, for which it is subject to the RMB position of the banks and their commercial decisions at that moment. Customers should consider and understand the possible impact on their liquidity of RMB funds in advance.
Risk of Foreign Currency Trading
Foreign currency investments are subject to exchange rate fluctuations which may provide both opportunities and risks. The fluctuation in the exchange rate of foreign currency may result in losses in the event that customer converts the foreign currency into Hong Kong dollar or other foreign currencies and customer has to bear the cost of currency exchange (i.e. spread between buy and sell of relevant currencies).
Risk of Relevant Quota being Used Up through Investment under Southbound Scheme
When the usage of the aggregate quota or the individual investor quota under the Southbound Scheme reaches its upper limit, instructions for remittance from the mainland China to Hong Kong under the relevant service will be put on hold. The Bank will refuse to accept the payment and return it back to dedicated remittance account.
