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Terms of Use of UOB Kay Hian Pte Ltd

This disclosure statement discusses only some of the characteristics and risks of trading bonds through and with UOB Kay Hian Pte Ltd (“UOBKH”). Before trading bonds you should consider consulting a financial advisor, who can provide advice on whether a particular investment suits your financial goals and can provide you with full understanding of the bonds you may choose to transact in.

Please be reminded that UOBKH merely provides execution services and does not provide any specific investment advice or recommendation for the client as an accredited investor under both the SFA and the FAA. UOBKH will not monitor your trades and investments to determine if they are appropriate or suitable for your financial needs or otherwise.

Please read the terms and conditions applicable to bond trading and the risk disclosure statement for bond trading available here

Risk Factors Pertaining to Bond Investments

Bonds are an investment product. The investment decision is yours but you should not invest in this product unless the intermediary who sells it to you has explained to you that the product is suitable for you having considered your financial situation, investment experience and investment objectives.

Bonds are NOT equivalent to time deposits.

The following risk disclosure statements cannot disclose all the risks involved. You should undertake your own research and study before you trade or invest. You should carefully consider whether trading or investment is suitable in light of your own financial position and investment objectives.

Although investment may bring profit opportunities, each investment product or service involves potential risks. Due to dynamic changes in the market, the price movement and volatility of investment products may not be the same as expected by you. Your funds may increase or reduce due to the purchase or sale of investment products. The loss incurred from investment may be the same or greater than the initial investment amount, and proceeds may also change accordingly. Part of the investment may not be able to liquidate immediately under certain market situations. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product. For the nature and risk disclosures of individual investment products, you should read carefully the relevant offering documents for details and seek advice from an independent financial adviser.

Key Risk Disclosures
Bonds are mainly for medium to long term investment, not for short term speculation. You should be prepared to invest your funds in bonds for the full investment tenor; you could lose part or all of your investment if you choose to sell bonds prior to maturity.

Bonds are subject to both the actual and perceived measures of credit worthiness of the issuer. There is no assurance of protection against a default by the issuer in respect of the repayment obligations. In the worst case scenario, you might not be able to recover the principal and any coupon if the issuer defaults on the bond.

It is the issuer to pay interest and repay principal of bonds. If the issuer defaults, the holder of bonds may not be able to receive back the interest and principal. The holder of bonds bears the credit risk of the issuer and has no recourse to UOB Kay Hian (Hong Kong) Limited ("UOBKH").

Indicative price of bonds are available and bond price do fluctuate when market changes. Factors affecting market price of bonds include, and are not limited to, fluctuations in Interest Rates, Credit Spreads, and Liquidity Premiums. The fluctuation in yield generally has a greater effect on prices of longer tenor bonds. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling bonds.

There may be exchange rate risks if you choose to convert payments made on bonds to your home currency.

The secondary market for bonds may not provide significant liquidity or may trade at prices based on the prevailing market conditions and may not be in line with the expectations of holders of bonds. If bonds are early redeemed, you may not be able to enjoy the same rates of return when you re-invest the funds in other investments.

The bonds have a specified investment period. The longer the investment period of the bonds, the more likely changes in interest rates, exchange rates, market environments and the Issuer’s financial and operating conditions may affect the bond value during the investment period. Your actual return (if any) may be substantially lower than expected and you may even suffer losses

For Renminbi (RMB) products:
There may be exchange rate risks if you choose to convert RMB payments made on the bonds to your home currency.
RMB debt instruments are subject to interest rate fluctuations, which may adversely affect the return and performance of the RMB products.
RMB products may suffer significant losses in liquidating the underlying investments if such investments do not have an active secondary market and their prices have large bid/ offer spreads.

You could lose part or all of your investment if you choose to sell your RMB bonds prior to maturity.Investing in emerging markets involves certain risks and special considerations not typically associated with investing in other more established economies or securities markets. Such emerging markets may lack the social, political or economic stability. Exposure to these markets may entail more volatility than investments in more established markets.

There may be other risks associated with the investment of each particular bond which are not mentioned above, please refer to each individual Term Sheet and Risk Disclosure Statement for details.

Disclaimer:
This information is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. UOBKH has based this list on information obtained from sources it believes to be reliable but which it has not independently verified. UOBKH makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. The information is subject to change without notice.