Common use of The Nature Clause in Contracts

The Nature. 6.2.1.1 XXX are structured products which can be listed on The Stock Exchange of Hong Kong Limited under Chapter 15A of the Main Board Listing Rules. They are marketed to retail and institutional investors who want to earn a higher interest rate than the rate on an ordinary time deposit and accept the risk of repayment in the form of the underlying shares or losing some or all of their investment. 6.2.1.2 XXX are traded in board lots and the minimum trading unit is one board lot. One board lot of XXX equals one board lot of its underlying security or its multiples. The duration of an XXX ranges from 28 days to two years. XXX are traded scripless in Hong Kong dollars and odd lots are settled in cash. Investors should note that short selling of XXX is prohibited. 6.2.1.3 An XXX’s investment returns are often linked to the performance of their underlying stock(s). But for the purpose of increasing the overall return from that of plain-vanilla ELIs, some issuers may include additional features, such as early call, knock-in and daily accrual coupon. These features may affect the return of the ELIs in different ways.

The Nature. 6.2.1.1 XXX are structured products which can be listed on The Stock Exchange of Hong Kong Limited under Chapter 15A of the Main Board Listing Rules. They are marketed to retail and institutional investors who want to earn a higher interest rate than the rate on an ordinary time deposit and accept the risk of repayment in the form of the underlying shares or losing some or all of their investment. 6.2.1.2 XXX are traded in board lots and the minimum trading unit is one board lot. One board lot of XXX ELI equals one board lot of its underlying security or its multiples. The duration of an XXX ranges from 28 days to two years. XXX are traded scripless in Hong Kong dollars and odd lots are settled in cash. Investors should note that short selling of XXX is prohibited. 6.2.1.3 An XXX’s investment returns are often linked to the performance of their underlying stock(s). But for the purpose of increasing the overall return from that of plain-vanilla ELIs, some issuers may include additional features, such as early call, knock-in and daily accrual coupon. These features may affect the return of the ELIs in different ways.