Taifook Securities clients can subscribe a wide range of Equity Linked Investments (ELIs) on daily basis. The minimum investment required is HK$100,000.

What are ELI Products?

ELI Products provide potential investors with a number of investment options, providing the ability to tailor your investment to your investment profile and your view of the market. Bull ELIs are one type of ELI Product. Bull ELIs may be suitable for experience investors who have a good understanding of financial products available in the market and who are now looking for increased flexibility in their investment options.

Bull ELIs are available to all experienced investors who use a Distributor. Bull ELIs are not a managed investment. With Bull ELI you choose the shares to which your investment relates.

A Bull ELI offers the potential to earn competitive returns, which in certain circumstances can exceed the returns available from both conventional equity investments and cash deposits. Investors should note that when you invest in a Bull ELI for potentially higher returns, you must be prepared to take high risks. In certain circumstances, if the price of the chosen Share on the Fixing Date is contrary to your expectation at the time of investing in the relevant Bull ELI, you may lose some or all of the money that you have invested. You should refer to the sections headed "Risk Factors" of the Information Memorandum and of this Product Booklet for further information on the risks of investing in Bull ELIs. You should discuss these risks with your Distributor.

Key Elements of Bull ELIs

The key elements of a Bull ELI are:

• The Shares in which you invest (you choose these from the list of Shares set out in the Term Sheet for the relevant Series).
  
  
• The Nominal Value (this is the maximum value of Shares you will be entitled to receive at maturity of your investment).
  
  
• The Purchase Price (the amount you pay at the time of your application, which may be less than the Nominal Value).
  
  
• The Reference Price, being the price below which you are exposed to falls in the price of the Shares, which is normally set at between 90% and 100% of the Closing Price of the Shares on the Issue Date. The Reference Price Percentage or the Fixed Reference Price (as the case may be) will be specified in the relevant Term Sheet.
  
  
• The investment term, generally ranging from one to six months. The term of the investment is set out in the Term Sheet for the relevant Series. Bull ELIs are issued on the Issue Date, and will terminate on the Settlement Date (based on the Share Value on the Fixing Date, which is normally two Business Days before the Settlement Date).

With respect to a Series of Bull ELIs, you select a Bull ELI from those available on the Term Sheet for that Series. When you purchase a Bull ELI, you are agreeing to purchase listed shares from the Issue at a future date for an agreed Purchase Price that you pay on making an application. The number of Shares that you will receive at the specified future date is dependant on the price performance of those Shares and the investment option that you have selected.

The price you pay for the Shares is the Purchase Price. The Purchase Price Percentage of a Bull ELI will be set out in the Term Sheet.

At the maturity of a Bull ELI, what you receive will be dependant on the Share price on the Fixing Date.

By investing in a Bull ELI, you will be financially exposed to movements in the price of the relevant Share as determined on the Fixing Date.

You should note that the Issuer has absolute discretion in accordance with the Terms and Conditions to either deliver Shares on the Settlement Date or the equivalent value in cash.

Who may Bull ELIs suit?

A Bull ELI may suit an investor who has a neutral to mildly positive outlook on the market or a particular share. Generally, the maximum return is realized if the price of the nominated Share rises above the Reference Price on the Fixing Date.

Bull ELIs may suit experienced investors who:

• would like the potential to earn higher returns and are prepared to take a higher level of risk for a part of their investment portfolio;
  
  
• have experience in investing in equity linked investments and are looking for more tailored ways of investing in accordance with their market views.

All funds required for subscription will be deducted from your securities account at the time of application. Please make sure you have sufficient funds in the securities account for the subscription.

For more information about the product and subscription, please contact your Account Executive or our enquiry hotline at 3583 3388.