Common use of Ownership Limits Clause in Contracts

Ownership Limits. Mainland China foreign ownership limits on the number of shares a foreign investor is permitted to hold in a single Mainland China Listco, and on the maximum combined holdings of all foreign investors in a single Mainland China Listco, may have an adverse effect on the liquidity and performance of an investment in China Connect Securities. As a result, I may suffer losses in China Connect Securities. I understand that if the Bank becomes aware that I have breached (or reasonably believes that I may breach upon execution of further Northbound buy orders) any foreign ownership limits, or if the Bank is so required by any China Connect Authority, including, without limitation to, any Forced-sale Notice issued by the relevant China Connect Market, the Bank will sell any China Connect Securities pursuant to clause E10 (Sale, Transfer and Disgorgement ) in Part A of these China Connect Terms if I fail to comply with the corresponding Client Forced-sale Notice in order to ensure compliance with all China Connect Laws and China Connect Rules. In such case, no China Connect Securities buy orders for the relevant China Connect Securities will be accepted until the relevant China Connect Market informs the corresponding SEHK Subsidiary or SEHK that the aggregate foreign shareholding has fallen below a certain percentage. SEHK may determine in its absolute discretion which Exchange Participants and what quantity of China Connect Securities should be subject to a Forced-sale Notice (this will generally be on a“ last-in, first-out” basis), and SEHK’s (or the relevant SEHK Subsidiary’s) own records shall be final and conclusive. Moreover, under Mainland China laws, where foreign investors hold in aggregate more than a specified percentage of the issued shares of a single Mainland China Listco, upon notification by the relevant China Connect Market to the corresponding SEHK Subsidiary, SEHK and the relevant SEHK Subsidiary are required as soon as practicable thereafter to suspend accepting China Connect Securities buy orders in respect of the relevant China Connect Securities. In such circumstances, the Bank may reject my buy orders until the aggregate shareholding of foreign investors is reduced to below the specified percentage as advised by the relevant China Connect Market.

Ownership Limits. Mainland China foreign ownership limits on the number of shares a foreign investor is permitted to hold in a single Mainland China Listco, Listco and on the maximum combined holdings of all foreign investors in a single Mainland China Listco, Listco may have an adverse effect on the liquidity and performance of an investment in China Connect Securities. As a result, I you may suffer losses in China Connect Securities. I You understand that if the Bank becomes aware that I you have breached (or reasonably believes believe that I you may breach upon execution of further Northbound buy orders) any foreign ownership limits, or if the Bank is so required by any China Connect Authority, including, including without limitation to, to any Forced-sale Notice issued by the relevant China Connect MarketSSE, the Bank will sell any China Connect Securities pursuant to clause E10 Clause 9 (Sale, Transfer and Disgorgement Disgorgement) in Part A of these the China Connect Terms if I you fail to comply with the corresponding Client Forced-sale Notice in order to ensure compliance with all China Connect Laws and China Connect Rules. In such case, no China Connect Securities buy orders for the relevant China Connect Securities will be accepted until the relevant China Connect Market SSE informs the corresponding SEHK Subsidiary or SEHK that the aggregate foreign shareholding has fallen below a certain percentage. SEHK may determine in its absolute discretion which Exchange Participants and what quantity of China Connect Securities should be subject to a Forced-sale Forcedsale Notice (this will generally be on a“ a “last-in, first-out” basis), and SEHK’s (or the relevant SEHK Subsidiary’s) own records shall be final and conclusive. Moreover, under Mainland China laws, where foreign investors hold in aggregate more than a specified percentage (the “Cautionary Level”) of the issued shares of a single Mainland China ListcoListco in aggregate, upon notification by the relevant China Connect Market SSE to the corresponding SEHK Subsidiary, SEHK and the relevant SEHK Subsidiary are required as soon as practicable thereafter to suspend accepting China Connect Securities buy orders in respect of the relevant China Connect Securities. In such circumstances, the Bank may reject my your buy orders until the aggregate shareholding of foreign investors is reduced to below the specified percentage (the “Permitted Level”) as advised by the relevant China Connect MarketSSE.

Ownership Limits. Under Mainland China foreign ownership limits on the number of laws, rules and regulations, there is a limit to how many shares a single foreign investor is permitted to hold in a single Mainland China Listco, and on also a limit to the maximum combined holdings of all foreign investors in a single Mainland China Listco. Such foreign ownership limits may be applied on an aggregate basis (i.e. across both domestically and overseas issued shares of the same issuer, whether the relevant holdings are through Northbound Trading, QFII/RQFII regime or other investment channels). It shall be your responsibility to comply with all foreign ownership limits from time to time imposed by China Connect Laws and China Connect Rules. Such legal and regulatory restrictions or limitations may have an adverse effect on the liquidity and performance of an investment in China Connect SecuritiesSecurities due to factors such as limitations on fund repatriation, dealing restrictions, adverse tax treatments, higher commission costs, regulatory reporting requirements and reliance on services of local custodians and service providers. As a result, I you may suffer losses through your trading or investment in China Connect Securities. I understand that if the Bank becomes If we become aware that I you have breached (or reasonably believes that I you may breach upon execution of further Northbound buy orders) any foreign ownership limits, or if the Bank is we are so required by any China Connect Authority, including, without limitation tolimitation, as a result of any Forced-sale Notice issued by the relevant China Connect Market, the Bank we will sell any China Connect Securities pursuant to clause E10 Clause 00 (SaleXxxx, Transfer Xxxxxxxx and Disgorgement Disgorgement) in Part A of these China Connect Terms above if I you fail to comply with the corresponding Client Forced-sale Notice in order to ensure compliance with all China Connect Laws and China Connect Rules. In such case, no China Connect Securities buy orders for the relevant China Connect Securities will be accepted until the relevant China Connect Market informs the corresponding SEHK Subsidiary or SEHK that the aggregate foreign shareholding has fallen below a certain percentage. SEHK may determine in its absolute discretion which Exchange Participants and what quantity of China Connect Securities should be subject to a Forced-sale Notice (this will generally is likely to be on a“ a “last-in, first-out” basis), and SEHK’s (or the relevant SEHK Subsidiary’s) own records shall be final and conclusive. Moreover, under Mainland China laws, where the aggregate holdings of foreign investors hold in aggregate more than exceed a specified percentage (the “Cautionary Level”) of the issued shares of a single Mainland China Listco, upon notification by the relevant China Connect Market to the corresponding SEHK Subsidiary, SEHK and the relevant SEHK Subsidiary are required as soon as practicable thereafter to suspend accepting China Connect Securities buy orders in respect of the relevant China Connect Securities. In such circumstances, the Bank we may reject my your buy orders until the aggregate shareholding of foreign investors is reduced to has fallen below the specified percentage (the “Permitted Level”) as advised by the relevant China Connect Market.. As of the date of these China Connect Terms, the single foreign investor limit is set at 10% of the shares of a Mainland China Listco and the aggregate foreign investor limit is set at 30% of the shares of a Mainland China Listco (while the Cautionary Level and the Permitted Level are set at 28% and 26% respectively of the shares of a Mainland China Listco). Such limits are subject to change from time to time and we shall not be under any obligation to inform you of any such changes to foreign ownership limits. - 78 - ESD-001-E/06