Callable Bull / Bear Contracts (. “CBBCs”) and Derivative Warrants (“DWs”) are leveraged products. The prices of CBBCs and DWs fluctuate and may dramatically and swiftly change in value to a much greater extent than the underlying assets. Assuming all other factors remain unchanged, the prices of CBBCs and DWs will decrease over time as they approach their expiry dates and they should not be held as long term investments. CBBCs and DWs have expiry dates and can become valueless after their expiry. 牛熊證及衍生權證屬於槓桿產品。相對其基礎資產，牛熊證及衍生權證價格可能會以更大程度顯著及快速地改變。若其他情況不變，牛熊證及衍生權證愈接近到期日價格會愈低，因此不應作為長線投資。牛熊證及衍生權證設有到期日，而在到期日後更可變成毫無價值。
Callable Bull / Bear Contracts (. This Risk Disclosure Statement does not disclose all of the risks and other significant aspects of trading in Bull / Bear Contracts. In light of the risks, you should undertake such transactions only if you understand the nature of the transactions into which you are entering and the extent of your exposure to risk. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances CBBC are a type of structured product that tracks the performance of an underlying asset without requiring investors to pay the full price required to own the actual asset. They are issued either as Bull or Bear contracts with a fixed expiry date, allowing investors to take bullish or bearish positions on the underlying asset. CBBC are issued by a third party, usually an investment bank, independent of HKEx and of the underlying asset. In some overseas markets, listed products equivalent to CBBC are generally known as “knock out” or “stop loss” certificates and non-listed equivalents are generally known as Contracts For Difference (CFD). CBBC are issued with the condition that during their lifespan they will be called by the issuers when the price of the underlying asset reaches a level (known as the “Call Price”) specified in the listing document. If the Call Price is reached before expiry, the CBBC will expire early and the trading of that CBBC will be terminated immediately. The specified expiry date from the listing document will no longer be valid. CBBC may be issued with a lifespan of 3 months to 5 years and are settled in cash only. They are traded on the cash market of HKEx through the AMS/3 during the market’s trading hours. In deciding whether to trade you should be aware of the following inherent risks:- Mandatory call CBBC are not suitable for all types of investors and investors should consider their risk appetite prior to trading. One should not trade in CBBC unless he/she understands the nature of the product and is prepared to lose the total amount invested since a CBBC will be called by the issuer when the price of the underlying asset hits the Call Price and trading in that CBBC will expire early. Payoff for Category N CBBC will be zero when they expire early. When Category R CBBC expire early the holder may receive a small amount of Residual Value payment, but there may be no Residual Value payment in adverse situations. Brokers may charge their clients a service fe...
