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Risk Disclosure Statement for Listingand Over-the-Counter ListingofSecurities (Including Depository Receipts) by Foreign Enterprises in Taiwan  CH

Amended Date: 2016.06.22 
Categories: Securities Exchange Market > Trading > Other Securities

Title: Risk Disclosure Statement for Securities Listings of Foreign Enterprises in Taiwan(2015.03.04)
1     Securities listed by of foreign enterprises in Taiwan include primary listed securities and secondary listed securities. Primary listed securities refer to stocks of a primary listed company, as well as relevant securities underlying such stocks, that are listed on the Taiwan Stock Exchange Corporation ("TWSE"). Secondary listed securities refer to foreign stocks and depository receipts of a secondary listed company, as well as relevant securities underlying such foreign stocks or depository receipts, that are listed on the TWSE. Before making an investment in such securities, the investor is advised to evaluate carefully whether the investment is suitable in view of its own financial capacity and economic condition, understand the potential risks the investment may entail, and in particular be aware of the following:
  1. Where the primary listed company and secondary listed company are companies registered in a foreign country, their requirements on corporate governance, accounting principles, tax system etc. may differ from the R.O.C.'s. The listing standards, ways of listing reviews, disclosure of information, protection of shareholders' interests, and supervision standards etc. may also vary among R.O.C. enterprises. The investor should understand this as well as possible potential risks.
  2. The investor should ascertain the features, market risk and risks of the issuer of the product, including the following, before investing in primary and secondary listed securities:
  3. Features of the product being invested in, liquidity risk when the product is traded in the R.O.C. market, financial and business risks of the issuer, political, economic and social changes of the location of the issuer, changes in the business cycle of the industry, and legal compliance etc.
  4. Where the primary and secondary listed securities are traded on the TWSE stock exchange, orders for trading are governed by the R.O.C. laws and regulations as well as stock exchange market regulations.
  5. If appearing as the first two units of the abbreviation of a primary listed security, "F-" means the par value per share is NT$10, and "F*" means there is no par value or the par value per share is not NT$10.
  6. Where the secondary listed company lists and trades on both the TWSE and an exchange of its original place of listing at the same time, the TWSE may suspend / resume trading of the secondary listed securities if the secondary listed company applies to the exchange of the original place of listing for, or an announcement is made by said exchange of, the suspension / resumption of trading. In view of the fact that the trading system, trading dates, trading hours etc. vary between the stock exchanges of the two places, and that differences also exist among individual cases, the investor should understand concurrent suspension / resumption of trading in the two places is not possible due to time gap.
  7. This Risk Disclosure Statement is only exemplary therefore does not provide a comprehensive list of all the risks and factors that may affect market performance with respect to investment in primary and secondary listed securities. Before trading, the investor should carefully review this Risk Disclosure Statement as well as other public information on the object of investment such as the prospectus, deliberate on other factors that may affect investment decision making, and make well-thought financial plans and thorough risk assessments, to avoid insufferable losses from trading.

    I hereby represent that I have received the Risk Disclosure Statement for Securities Listings of Foreign Enterprises in Taiwan from you and also been provided with explanations by a representative sent by you, and that I fully understand the risks of investing in securities listed by foreign enterprises in Taiwan.

    Signed by : (signature or authorized seal)
    Account No.: