Risk Profiling Questionnaire

Customer Name(s): HSBC Staff name About this questionnaire This questionnaire has three sections and is designed to help you consider your attitude toward investment risk. Section 1 asks questions which provide some indication of the overall general attitude toward risk for a typical investor displaying your personal investment characteristics. It may not match your actual attitude toward investment risk, but it indicates the profile you fit into. Section 2 builds on this information so that you can consider what specific level of risk you are happy to accept in relation to the amount of capital you wish to invest now. It also helps to identify your investment objectives. It is important that you consider both your general and specific attitudes toward risk as these may not be the same. For example, while overall you may consider yourself to be a balanced investor (i.e., one who is happy to hold a portfolio of investment products with different investment risks), there may be occasions when you wish to invest in only lower risk products to meet a specific investment objective, for example, to invest for your childs education. Section 3 summarizes the specific attitude toward risk you are happy to accept for the capital you wish to invest now. This will help us suggest possible investment / insurance (with investment element) products which may be suitable for your consideration. SECTION 1 About You Your Overall General Attitude toward Investment Risk 1. Which age range do you fall into? a. Above 75 or under 18 (1 point) ( ) b. Between 66 and 75 (2 points) ( ) c. Between 56 and 65 (3 points) ( ) d. Between 46 and 55 (4 points) ( ) e. Between 18 and 45 (5 points) ( ) 2. How many years of experience do you have with investment products the value of which can fluctuate (including buy and hold and active trading)? Investment products the value of which can fluctuate could include, for example, stocks, unit trusts, foreign currencies, commodities, structured investment products, warrants, options, futures, investment-linked insurance plans. a. No experience (1 point) ( ) b. Less than 3 years (2 points) ( ) c. Between 3 and 6 years (3 points) ( ) d. Between 7 and 10 years (4 points) ( ) e. Over 10 years (5 points) ( ) Are you currently holding any of the below investment products? a. Cash, deposits, certificate of deposits, capital protected products b. Bonds, bond funds c. Foreign currencies, non capital protected currency linked structured products d. Stocks, open-end funds excluding bond funds & money market funds, non capital protected equity linked structured products, investment-linked insurance plan, commodities e. Options, futures, warrants (Note: The highest point answer will be taken for the calculation of score) (1 point) (2 points) (3 points) (4 points) (5 points) ( ) ( ) ( ) ( ) ( ) A/C No(s): Staff No. Date Completed:

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Approximately what percentage of your assets (excluding own use property) is currently held in investment products where the value can fluctuate? Please refer to Question 2 for examples of such products. a. 0% (1 point) ( ) b. Between >0% and 10% (2 points) ( ) c. Between >10% and 25% (3 points) ( ) d. Between >25% and 50% (4 points) ( ) e. Over 50% (5 points) ( ) Over a period of time the value of investments can rise and fall, this is called fluctuation. Generally, the higher the investment risk the higher the potential fluctuation but also the higher the potential returns. On the other hand, the lower the investment risk the lower the potential fluctuation but also the lower the potential returns. What level of fluctuation would you generally be comfortable with? [Note: You might be comfortable accepting a higher or lower level of fluctuation for the capital you have to invest now, but your answer should reflect the level of fluctuation you would in general be comfortable with.] a. Fluctuates between -5% and +5% (1 point) ( ) b. Fluctuates between -10% and +10% (2 points) ( ) c. Fluctuates between -15% and +15% (3 points) ( ) d. Fluctuates between -20% and +20% (4 points) ( ) e. Fluctuates between <-20% and >+20% (5 points) ( )

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Normally, what percentage of your monthly household income could be available for investment or savings? a. 0% (1 point) ( ) b. Between >0% and 10% (2 points) ( ) c. Between >10% and 25% (3 points) ( ) d. Between >25% and 50% (4 points) ( ) e. Over 50% (5 points) ( ) It is generally true that the longer the investment horizon, the higher the risk an investor can tolerate. What time horizon would you generally be comfortable with when investing in products the value of which can fluctuate? Please refer to Question 2 for examples of such products. a. Less than 1 year (1 point) ( ) b. Between 1 and 3 years (2 points) ( ) c. Between 4 and 5 years (3 points) ( ) d. Between 6 and 10 years (4 points) ( ) e. Over 10 years (5 points) ( ) How many months of your share of household expenses have you put aside to meet unforeseen events? These assets should be easily accessible and capable of being liquidated without penalty or with an acceptable penalty). a. Have no amount set aside for unforeseen events * (1 point) ( ) b. Less than 3 months (2 points) ( ) c. Between 3 months and <6 months (3 points) ( ) d. Between 6 months and <9 months (4 points) ( ) e. Over 9 months (5 points) ( )
* You should always consider setting aside an amount of accessible capital you believe sufficient to meet unforeseen events (say at least three months of your share of household expenses) before considering committing funds to investment or savings products.

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General attitude to investment risk points score: Question 1 2 3 4 5 Score ( ) ( ) ( ) ( ) ( ) Your Overall General Attitude toward Investment Risk

6 ( )

7 ( )

8 ( )

Total : ___________________

The following chart indicates the attitude toward investment risk that a typical investor is expected to have based on the overall scores determined from your responses to the questions above. Score Typical Attitude Definition Toward Risk Indicates that you are not happy to invest in any product where your capital is at risk. Returns 11 or SECURE are likely to be based on prevailing interest rates which may or may not keep pace with below inflation. You are happy to hold life insurance policies which may have a savings element but understand early surrender will lead to you receiving less back than paid in premiums. Indicates that you are happy to accept 12 CAUTIOUS 19 A low level of investment risk in return for the potential to outperform deposits over the medium term (approx. 3 years) and protect your capital against inflation. Capital values can fluctuate and may fall below your original investment. Fluctuation is expected to be low, although this is not guaranteed. Indicates that you are happy to accept 20 BALANCED 28 A higher level of investment risk in return for increased potential to outperform deposits over the medium to long term (approx.5 years) and protect your capital against inflation. Capital values can fluctuate and may fall below your original investment. A higher level of fluctuation than a Cautious investor. 29 ADVENTUROUS Indicates that you are happy to accept 35 A high level of investment risk and fluctuation over the short, medium and long term in return for the potential to earn returns substantially higher than inflation. Capital values can fluctuate and may fall substantially below your original investment. A higher level of fluctuation than a Balanced investor. Indicates that you are happy to accept 36 SPECULATIVE 40 A very high level of investment risk and fluctuation over the short, medium and long term in return for the potential to earn very high returns. Capital values can fluctuate and may fall substantially below your original investment. A higher level of fluctuation than an Adventurous investor. Based on the answers you have provided, your score is ( ). Using the above definition, your general attitude toward investment risk is likely to be ________________________ If you disagree with this conclusion, please indicate your General Attitude Toward Investment Risk that you believe is more accurate (please tick the appropriate one). This will be the General Attitude Toward Investment Risk captured in the Banks record. SECURE ( ) CAUTIOUS ( ) BALANCED ( ) ADVENTUROUS ( ) SPECULATIVE ( )

SECTION 2 Your Specific Attitude toward Investment Risk & Your Investment Objectives For the capital you are considering investing now, please answer the following questions: 1. What is your chosen investment objective? a. Provision of income (such as interest or dividends) with income reinvested or paid out b. Provision of capital appreciation (such as capital gain from investing in stocks) c. A combination of income and capital appreciation Over what time span do you wish to invest the capital available now? a. 1 year or less b. 3 years or less c. 5 years or less d. 10 years or less e. Over 10 years ( ) ( ) ( ) ( ( ( ( ( ) ) ) ) )

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Considering the purpose of this new investment (e.g. school fees, long-term saving, retirement planning, etc.), are you happy that the general attitude toward risk established in Section 1 is appropriate for the capital that you wish to invest now (i.e. your general and specific attitudes are the same)? a. Yes ( ) (Go to Section 3 Summary) b. No ( ) (Go to Question 4) If you have answered No to Question 3 above, using the definitions of Attitude toward Risk described in Section 1, how would you classify your specific attitude toward risk in relation to the capital to be invested now? a. Secure ( ) b. Cautious ( ) c. Balanced ( ) d. Adventurous ( ) e. Speculative ( )

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SECTION 3 Summary Based on your answer to Question 3 or 4 above, your specific attitude to risk in relation to the capital you wish to invest now has been established as: (Please tick applicable box) SECURE: We suggest you consider products that carry no investment risk. Life insurance policies taken out to cover a protection need but which also include a savings element may be considered but early surrender will lead to you receiving less back than paid in premiums. CAUTIOUS: We suggest that you consider products which have the potential to outperform deposits over the medium term (3 years) and protect your capital against the effects of inflation. Capital values can fluctuate and may fall below your original investment. Fluctuation is expected to be low although this is not guaranteed. Where you are considering a portfolio planning service, Cautious describes the overall approach to the portfolio and may include products of a higher or lower risk grade than you would like to hold individually. BALANCED: We suggest that you consider products which have the potential to outperform deposits over the medium to long term (5 years) and protect your capital against the effects of inflation. Capital values can fluctuate and may fall below your original investment. Fluctuation is expected to be higher than those suggested for a cautious investor but the products offer potentially better returns. Where you are considering a portfolio planning service, Balanced describes the overall approach to the portfolio and may include products of a higher or lower risk grade than you would like to hold individually. ADVENTUROUS: We suggest that you consider products which have the potential to earn returns substantially better than inflation. Capital values can fluctuate and may fall substantially below your original investment. Fluctuation is expected to be higher than those suggested for a balanced investor but the products offer the potential for substantially better returns. Where you are considering a portfolio planning service, Adventurous describes the overall approach to the portfolio and may include products of a higher or lower risk grade than you would like to hold individually. SPECULATIVE: We suggest that you consider products which have the potential to earn high returns. Capital values can fluctuate and may fall substantially below your original investment. Fluctuation is expected to be higher than those suggested for an adventurous investor but the products offer the potential for substantially better returns. Where you are considering a portfolio planning service, Speculative describes the overall approach to the portfolio and may include products of a lower risk grade than you would like to hold individually.

I/we confirm that my/our general and specific attitudes to investment risk are correctly stated above and that the information I/we have supplied is correct. Where my/our general and specific attitudes to investment risk are different, I/we am/are happy to proceed on the basis of my/our specific attitude to investment risk shown in Section 3. I/we confirm that I/we were reminded and are aware that I/we should have adequate liquid funds to meet unforeseen events.

Customer Signature(s): _________________________

Date: ____________________

Disclaimer: This questionnaire is provided by the Hongkong and Shanghai Banking Corporation Limited (HSBC). The results of this questionnaire are derived from information that you have provided to the Bank, and only serve as a reference for your consideration when making your own investment decisions. This questionnaire and the results are not an offer to sell or a solicitation for an offer to buy any financial products and services and they should not be considered as investment advice. HSBC accepts no responsibility or liability as to the accuracy or completeness of the information given. Personal information collected in this questionnaire will be kept confidential by HSBC. The information may be used by HSBC or any HSBC Group entity under a duty of confidentiality to HSBC, for designing and/or marketing of financial products and services. Investments in any financial products and services are not deposits and are subject to investment risks. The value of investments and the income from them may fall as well as rise and you are not guaranteed to get your money back. Your investments in any financial products and services contain certain risk. Past Performance is not a guarantee of future results. Please read the prospectus before investing.