Common use of Risk of Trading Renminbi Securities or Making Renminbi Investments Clause in Contracts

Risk of Trading Renminbi Securities or Making Renminbi Investments. 2.1 Currency Risk Non-mainland Client who holds a local currency other than Renminbi will be exposed to currency risk if the Client invests in Renminbi products, as Renminbi is a restricted currency and subject to exchange controls. The Client may have to convert the local currency into Renminbi when investing in Renminbi products; however, there may at any given time be limited availability of Renminbi outside Mainland China. When the Client redeems/sells investment, the Client may also need to convert the Renminbi received upon redemption/sale of investment product into local currency during which the Client may incur currency conversion costs and be exposed to currency risk. Like other currencies, the exchange rate of Renminbi may rise or fall and Renminbi is subject to conversion restrictions and foreign exchange control mechanism.