Risk Disclosure Statement

 

The price of securities can and does fluctuate, and any individual security may experience upwards or downwards movements and may even become valueless. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling securities.

Risk Disclosure Statement (GEM)

 

The price of securities traded on GEM can and does fluctuate, and any individual security may experience upwards or downwards movements and may even become valueless. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling securities traded on GEM.

 

GEM has been established as a market designed to accommodate companies to which a high investment risk may be attached. In particular, the companies may list on GEM with neither a track record of profitability nor any obligation to forecast future profitability. Also, there may be risks arising out of the emerging nature of companies listed on GEM and the business sectors or countries in which the companies operate.

 

There are potential risks of investing in such companies and investors should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.

 

Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be susceptible to higher market volatility compared to securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM.

 

The principal means of information dissemination on GEM is publication on the internet website operated by the Exchange. Companies listed on GEM are not generally required to issue paid announcements in gazette newspapers. Therefore,

Investors need to have access to up-to-date information on GEM-listed companies as published on the GEM website.

 

This risk disclosure statement does not purport to disclose all the risks and other significant aspects of GEM. Investors should undertake research and study on the trading of securities on GEM before commencing any trading activities.

 

Investors should seek independent professional advice if investors themselves uncertain of or have not understood any aspect of this risk disclosure statement or the nature and risks involved in trading of securities on GEM.