Risks associated with Internet

The Internet is an inherently unreliable and insecure medium of data transmission. Accordingly, there are risks in trading on-line, conducting transactions or otherwise communicating through the Internet.

Access to this website and the services provided through this website may at any time and from time to time be limited, delayed or unavailable, including during periods of peak demand, market volatility, systemic failures (including hardware or software failures), systems upgrades or maintenance or for other reasons, without prejudice to the foregoing:

• Transactions conducted through the Internet may be subject to interruption, transmission blackout, delayed transmission due to Internet traffic or incorrect data transmission due to the public nature of the Internet.
• There may be risk of exposure to counterfeit website and internet trading service of Winland Wealth Management Limited using similar domain name (URL) or layout, to steal or cheat personal information of investors. Using reliable client software and performing correct configuration, investors can prevent such fraud, or be warned if fraud is detected.
• There may be delays, termination, interruption, congestion of data transmission on the Internet due to busy traffic or other causes.
• Communications and personal data may be accessed by unauthorised third parties. Your instructions may be executed without being subject to human review. The information posted on the website may not be updated immediately and may not reflect transactions not conducted through the website.
• If the digital certificate and password for authentication are stolen, a third party may imitate the identity of investor(s) to execute transactions over the Internet or to inquire into transactions.
• Data transmitted through the Internet may be intercepted by anyone, though such unauthorized parties may not understand the authentication of the content. There may be delays in the quotation of price by stock exchanges, resulting in differences to the real-time price quotation. All securities information published on the Internet, including but not limited to analysis, predictive data, may be erroneous or wilfully mislead. Losses or expenditure resulting from delay in communication, faults, inaccuracy, absence of confidentiality beyond reasonable realm of control of Winland Wealth Management Limited, are not accounted for by Winland Wealth Management Limited to any party or entities.

Winland Wealth Management Limited accepts no responsibility to you or anyone else for any loss or expense that may result from delays, failures or inaccuracies in communications, or lack of security, beyond the reasonable control of Winland Wealth Management Limited.

Risk of Securities Trading

The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down and may become valueless. It is as likely that losses will be incurred rather than profits made because of buying and selling securities.

Risk of trading Growth Enterprise Market stocks

Growth Enterprise Market (“GEM”) stocks involve a high investment risk. In particular, companies may be listed on GEM with neither a track record or profitability nor any obligation to forecast future profitability. GEM stocks may be very volatile and illiquid.

You 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.

Current information on GEM stocks may only be found on the internet website operated by The Stock Exchange of Hong Kong Limited. GEM companies are usually not required to issue paid announcements in gazetted newspapers.

You should seek independent professional advice if you are uncertain of or have not understood any aspect of this risk disclosure statement or the nature and risks involved in trading of GEM stocks.

Risk of providing authority to lend or deposit securities with third parties

There is risk if you provide Winland Wealth Management Limited with an authority that allows Winland Wealth Management Limited to lend your securities to or deposit them with certain third parties under Section 81, 81A or 121AB of the Securities Ordinance (Cap.333) and related rules. This is allowed only if you consent in writing. The consent must specify the period for which it is current, which cannot exceed 12 months.

You are not required by any law to sign these authorities. But an authority may be required in certain instances, including to facilitate margin lending to you or to allow your securities to be loaned to or deposited as collateral with third parties. Winland Wealth Management Limited will explain to you the purposes for which one of these authorities is to be used.

If you sign one of these authorities and your securities are lent to or deposited with third parties, those third parties will have a lien or charge on your securities. Although your dealer or securities margin financier is responsible to you for your securities lent or deposited under the authority, a default by it could result in the loss of your securities.

A cash account not involving securities borrowing and lending is available from Winland Wealth Management Limited. If you do not require margin facilities or do not wish your securities to be lent or pledged, do not sign the above authority, and ask to open a cash account with Winland Wealth Management Limited instead.

Counterparty risk

Winland Wealth Management Limited is a participant of The Stock Exchange of Hong Kong Limited. If Winland Wealth Management Limited fails to meet its obligations to you, you have the right to claim under the compensation fund established by The Stock Exchange of Hong Kong Limited subject to the terms and conditions applicable to the compensation fund.

Margin Trading Risk

Using the deposit of collateral to acquire financing for the purpose of securities trading can involve tremendous risk. As such, the loss you incur may exceed the value of cash and any other assets you have deposited as collateral with the Company. Please also note that market situation may render the execution of standing trading instructions, for instance, “stop-loss” or “limit price” orders, impossible. You may therefore be requested to deposit additional margin monies or pay interests within a short period of time. In case you fail to deposit the required margin monies or pay interests at the time specified, the collateral you have deposited may be disposed of without your prior consent. In addition, you shall also be liable for any shortfall of monies or interests payable arising therefrom in respect of your account. Therefore, you should consider carefully whether this kind of financing arrangement is suitable for you with reference to your financial status and investment objectives.

Trading Instructions or Investment Strategies for Reducing Risk

Even though you place certain trading instructions (for instance, “stop-loss” or “stop loss limit” orders) which are intended to pre-set the limits of loss, the effectiveness of them may not be as desirable as expected since market situation may render the execution of such trading instructions impossible. In regard to the strategies of using various portfolios of positions, for instance, the portfolio of “spread” or “straddle” etc., the level of risk may not be lower than the holding of basic “long” or “short” position.

Risk Associated with Receiving or Holding Clients’ Assets Outside Hong Kong

The receipt or holding of your assets by the Company or its agent elsewhere outside Hong Kong is subject to the regulation of the applicable laws and regulations of the relevant overseas jurisdiction. These laws and regulations may differ from the Ordinance and the provisions made according thereto. In this case, your assets may not enjoy the same protection as assets being received or held in Hong Kong.

Risk Relevant to Cash and Property Deposited

Where you deposit money or other property for the purposes of conducting transactions locally or in overseas countries, you should clarify the protection concerning the said money or property, in particular, at a time when the relevant firms are being wind up or become insolvent. The amount of money or property ultimately recovered will be subject to the specific legislation or local regulations. You should note that in certain jurisdiction, in the case where there is shortfall of monies or property being recovered, the property which should have belonged to you shall be distributed to you as cash on a pro rata basis.

Commissions and Other Fees

Prior to conducting any transaction, you have to ascertain all commissions, fees and other charges which are payable by you. These fees will have a direct impact on the net profits (if any) you gain or the loss you incur.

Risk Arising from Transactions Conducted in Other Jurisdictions

Additional risks may arise from transactions conducted in markets of other jurisdictions (including those markets which have established formal connection with the local market). Subject to the regulations of these markets, the coverage extended to investors in different jurisdictions may vary, or even be reduced. Prior to conducting any transaction, you should examine all regulations relevant to the transaction to be conducted in such jurisdictions. You should consult independent professional advice. The regulatory institution of the place where you are situated shall not force the regulatory institution or market under the jurisdiction of which its stock exchange has executed the said transaction to implement the relevant regulations. As such, prior to conducting any transaction, you have to make enquiries with the relevant firms to confirm the availability of remedy measures at the jurisdiction where you are situated and other jurisdictions together with the relevant details.

Currency Risk

The profits or loss arising from trading of securities denominated in foreign currencies (whether the transactions are conducted in the jurisdiction where you are situated or in other regions) will be subject to the movement of foreign currency exchange rates when converting the denomination currency of the said securities into another currency.

Risk Arising from Trading Facilities

Electronic trading facilities carry out order transmission, execution, matching, registration and clearing by means of computing system. However, it should be noted that all of these facilities and systems are susceptible to temporary connection, disruption or break down and the compensation you will acquire in respect of this will be subject to the restriction imposed by the liability of the system providers, markets, clearing companies and / or participant firms. Since the said liability-related restrictions vary, you should make enquiries with the relevant participants through whom your transactions have been conducted.

Electronic Trading Risk

Securities trading transacted through different electronic trading systems may by no means be the same. Where you conduct trading via a particular electronic trading system, you shall be subject to the risk associated with that particular system, inter alia, the relevant hardware or software of the systems may fail at any time. You should also note that system breakdown may result in the failure of executing your securities trading orders according to your instructions or those securities trading orders may become entirely non-executable.

Over-the-counter Risk

In certain jurisdiction or under certain specific circumstances, the Company may be permitted to carry out over-the-counter trading and, the Company may be the only counterparty of the securities trading you have engaged in. Under such circumstances, it may be difficult or impossible for you to close the open position, carry out evaluation, determine a fair price or assess the relevant risk. The said trading, therefore, may involve higher degree of risk. In addition, the regulation of over-the-counter trading may be relatively relaxed, or the securities trading may be subject to different regulatory system. In light of this, prior to conducting the said over-the-counter trading, you should understand applicable regulations and the relevant risk.