A Glossary of Securities and Financial Terms

English to Traditional Chinese

A
AAAC ABS ACCA ACG ACIHK ADB ADR AFTA AGM AIB AIM AIMR AMCHAM AMEX AMS AMS/2 AMS/3 ANNA AOI AOSEF APEC API APRC ARM ASAC ASC 1 see Academic and Accreditation Advisory CommitteeSFC see asset-backed securities see Association of Chartered Certified Accountants, The see Asia-Pacific Central Securities Depository Group see ACI-The Financial Markets of Hong Kong see Asian Development Bank see American depositary receipt see ASEAN Free Trade Area see annual general meeting see Audit Investigation Board see Alternative Investment MarketUK see Association for Investment Management and Research see American Chamber of Commerce see American Stock Exchange see Automatic Order Matching and Execution System see Automatic Order Matching and Execution System / Second Generation see Automatic Order Matching and Execution System / Third Generation see Association of National Numbering Agencies see All Ordinaries Index see Asian and Oceanian Stock Exchanges Federation see Asia Pacific Economic Cooperation see Application Programming Interface see Asia Pacific Regional Committee of IOSCO see adjustable rate mortgage see Asian Securities' Analysts Council see Accounting Society of China

ASEAN ASIC AST system ASX ATI

see Association of South-East Asian Nations see Australian Securities and Investments Commission see automated screen trading system see Australian Stock Exchange see Account Transfer Instruction

ABF Hong Kong Bond Index Fund ABF Pan Asia Bond Index Fund (Paif) abnormal item about order above par above the line Academic Advisory CommitteeSFC Academic and Accreditation Advisory Committee (AAAC) SFC accelerated depreciation accept order acceptance acceptance house accommodation bill accommodation charge Account Transfer Instruction (ATI) accountability accountants' report accounting equation accounting period accounting practice Accounting Society of China (ASC) accounting standard accounting treatment accounts payable accounts receivable accretion 2

ABF

accrual basisaccounting accrued expenses accrued interest accrued revenue accumulated depreciation accumulated interest accumulated profits accumulator ACI-The Financial Markets of Hong Kong (ACIHK) acid-test ratio acquisition acquisition of shells acting in concert active business pursuitsGEM active market actual market actual price actual useful life ad valorem stamp duty add-on additional margin Adjudication Division Adjudicator adjustable rate mortgage (ARM) adjusted basis adjusted net assets adjusted net tangible assets adjustment administering bank admissible securities value admitted value advance advance booking form 3

Advisory CommitteeSFC Advisory Specialist Group affiliate; affiliated company after market / aftermarket after-hours dealing after-tax profits after-tax real rate of return afternoon session agency account Agency Share Transfer SystemMainland China agency trade agent aggregate auction aggregate market value aging analysis of accounts alert message Alert Messge Service algorithmic trading All Ordinaries Index (AOI) all-or-none order allotment allottee allowanceaccounting Allowance for bad and doubtful debts alpha coefficient Alternate alternative investment Alternative Investment Market (AIM)UK amalgamation Amended and Restated Addendum to Memorandum of Understanding Governing Listing Matters American Chamber of Commerce (AMCHAM) 4

alpha ()

American depositary receipt (ADR) American Stock Exchange (AMEX) American style option amortisation AMS order book AMS Second Terminal annual accounts annual general meeting (AGM) annual report Appeals PanelSFC appetite for risk Application Programming Interface (API) Applied Research Fund appreciation appropriation approved borrower approved deposit fund approved lending agent approved redeemable share arbitrage arbitrary scale up method arithmetic average; arithmetic meanstatistics arm's length transaction arrears articles of association ASEAN Free Trade Area (AFTA) ASEAN Regional Forum Asia-Pacific Central Securities Depository Group (ACG) Asia Pacific Economic Cooperation (APEC) Asia Pacific Loan Market Association Asia Pacific Regional Committee (APRC) of IOSCO Asian and Oceanian Stock Exchanges Federation (AOSEF) 5

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Asian Development Bank (ADB) Asian dollar bond Asian dollar market Asian Securities' Analysts Council (ASAC) Asian Securities Analysts Federation ask price; asked price asset asset allocation asset coverage asset injection asset management company asset stripper asset stripping asset swap asset-backed securities (ABS) assignee assignment assignmentoptions assignor assistant supervisorGEM associate associate; associate company; associated company associated person Association Cambiste Internationale Association for Investment Management and Research (AIMR) Association of Chartered Certified Accountants, The Association of International Accountants, The Association of National Numbering Agencies (ANNA) Association of South-East Asian Nations (ASEAN) Association of Stockbrokers in Hong Kong (1891) at-auction limit order 6

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at-auction order at-best order at-the-close order at-the-money option at-the-opening order ATI Batch File Transfer attributable equity interest auction auction= open outcry auction market Audit CommitteeSFC Audit Committee Audit Investigation Board (AIB) audit test audit trail audited accounts auditor auditors' report austerity measures Australian Securities and Investments Commission (ASIC) Australian Stock Exchange (ASX) authorised capital authorised clerk authorised fund authorised representative authorised user automatched stock automated screen trading system (AST system) automatic exerciseoptions Automatic Order Matching and Execution System (AMS) Automatic Order Matching and Execution System / Second GenerationAMS/2 7

= / *

Automatic Order Matching and Execution System / Third Generation (AMS/3) average daily turnover Average Return Warrant average value order

* Terms commonly used in the Mainland

B
B/C date Bear ELI BESS BFI BIS BSS BTF Bull ELI see book close date see Bear Equity Linked Instrument see Brokers' Electronic Support Services see Brokers' Fidelity Insurance Scheme see Bank for International Settlements see Broker Supplied System see Block Trade Facility; Block Trading Facility see Bull Equity Linked Instrument

back month back office back-office system backdoor listing backend enforcementSFC backup interactive line bad debt bait order balance balance of payments balance sheet balance sheet date balancing item bank confirmation Bank for International Settlements (BIS) Bank of England Bank of Japan bank reconciliation statement banker's acceptance banking company banking facility banner barter transaction 9

bare trustee barrier option barrier warrant base day base listing document Basel Agreement Basel Committee on Banking Supervision (Basel Committee) Basel Concordat basis point basis risk basket of currencies basket warrant batch settlement run Bear Equity Linked Instrument (Bear ELI) bear market bear position bear raid bearer securities Bearer TreasuryMainland China below par below the line benchmark mortgage pool benchmark yield curve beneficial holder beneficial interests beneficial owner beneficiary benefits-in-kind Best Corporate Governance Disclosure Awards best execution price Best Practice Guide on Financial Disclosure by Authorised InstitutionsHKMA

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10

best price beta coefficient beta test mode bid price bid-asked spread bidder Big BangUK bilateral netting bill of exchange binomial option pricing model black box trading Black-Scholes option pricing model "black out" period blanket waiver block order block trade Block Trade Facility; Block Trading Facility (BTF) blocking period blue chip board lot board of directors boiler room bond bonus issue bonus share book building method book close date (B/C date) book closure period book runner book value bought deal branch certificate breadth of the market 11

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breakeven point bridging loan Broker Activities Working Team Broker ParticipantCCASS Participants Broker Supplied System (BSS) Brokers' Accounting System Brokers' Electronic Support Services (BESS) Brokers' Fidelity Insurance Committee Brokers' Fidelity Insurance Scheme (BFI) brokerage brokerage house brought forwardaccounting browse and pick bubble economy bucketing bulk registration service Bull Equity Linked Instrument (Bull ELI) bull market bull position Bulletin Board business day business registration certificate butterfly spread buy and hold strategy buy in buy order buy-backcf repurchase agreement buy-out / buyout buyout repo

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* Terms commonly used in the Mainland

12

C
CAPI CASIF CBBC CBO CBOE CBOT CBRC CCASS CCMS CCP CCSD CDC CDO CDR CEDEL CEPA CER CFA CFD CFETS CFFEX CFMMC CFTC CGT CHATS CHESS CHIS see China Association for the Promotion of Investment see Chinese Association of Securities Investment Funds, The see Callable Bull / Bear Contract see Collateralised Bond Obligation see Chicago Board Options Exchange see Chicago Board of Trade see China Banking Regulatory Commission see Central Clearing and Settlement System see Common Collateral Management System see Central Counterparty see Conference of Central Securities Depositories see China Governmnet Securities Depository Trust & Clearing Co. Ltd. see Collateralised Debt Obligation see Chinese depositary receipt see Centrale de Livraison de Valeurs Mobilieres Europe see Closer Economic Partnership Arrangement see Certified Emissions Reductions see Corporate Finance Association see contract for differences see China Foreign Exchange Trade System see China Financial Futures Exchange see China Futures Margin Monitoring Center Co., Ltd. see Commodity Futures Trading Commission US see capital gains tax see Clearing House Automated Transfer System see Clearing House Electronic Subregister SystemAustralia see Computershare Hong Kong Investor Services Limited 13

CIC CICPA CIMA CIRC CIS CLO CME CMU CNS COD COP CPI CPSS CPT CSDCC CSRC

see China Investment Corporate Ltd see Chinese Institute of Certified Public Accountants see Chartered Institute of Management Accountants see China Insurance Regulatory Commission see collective investment schemes see Collateralised Loan Obligation see Chicago Mercantile Exchange see Central Moneymarkets UnitHKMA see continuous net settlement see cash on delivery see Calculated Opening Price see Capital Protected Instrument see Committee on Payment and Settlement Sytstems, The see Continuous Professional Training see China Securities Depository and Clearing Corporation Limited see China Securities Regulatory Commission

cabinet bid cabinet trade Cadbury CommitteeUK Cadbury ReportUK Calculated Opening Price (COP) calendar spread call auction call market call option call premiumbonds call priceCBBC call spread derivative warrant call warrant call writer 14

call-over Callable Bull / Bear Contract (CBBC) cancelled share candlestick chart capital account capital adequacy capital adequacy ratio capital adjustment capital appreciation capital expenditure capital formation capital gain capital gains tax (CGT) capital loss capital market capital plus warrant capital preservation product Capital Protected Instrument (CPI) capital reserve capital value capitalisation capitalisation issue capitalisation of interest carried forwardaccounting carry trade cash alternative cash client cash commission rebate; cash rebate cash company cash flow cash flow statement cash market Cash Market Consultative Panel 15

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cash marks cash on delivery (COD) cash prepayment service cash price cash settled ELI cash settlement cash shell "Caveat Emptor" (let the buyer beware) CCASS/3 CCASS Depository CCASS Guarantee Fund CCASS Internet System CCASS Operational Procedures CCASS Participant & Designated Bank List CCASS Phone System "cease and desist" order ceiling-floor agreement censure Central Clearing and Settlement System (CCASS) central counterparty (CCP) central depository Central Moneymarkets Unit (CMU)HKMA central nominee central order book central transaction log Centrale de Livraison de Valeurs Mobilieres (CEDEL)Europe centralised borrowing and lending system certificate of incorporation certificate replacement service Certificate TreasuryMainland China certificated shareholder Certified Emissions Reductions (CER)

16

CFA Institute chain principle Chamber of Hong Kong Listed Companies change of domicile change of year end charge charging structure chartered financial analyst Chartered Institute of Management Accountants (CIMA) CHATS Payment Instruction Chicago Board of Trade (CBOT) Chicago Board Options Exchange (CBOE) Chicago Mercantile Exchange (CME) chief agency broker chief dealer China Association for the Promotion of Investment (CAPI) China Banking Regulatory Commission (CBRC) China Beijing Equity Exchange China-controlled company (Red Chip) China Financial Futures Exchange (CFFEX) China Foreign Exchange Trade System (CFETS) China Futures Association China Futures Margin Monitoring Center Co., Ltd. (CFMMC) China Government Securities Depository Trust & Clearing Co. Ltd. (CDC) China Insurance Regulatory Commission (CIRC) China International Economic and Trade Arbitration Commission China Investment Corporate Ltd (CIC) China SAFE Investments Ltd

CFA * () ( )

17

China Securities Depository & Clearing Corporation Limited (CSDCC) China Securities Free Floating Index China Securities Index Co., Ltd China Securities Investor Protection Fund Corporation Limited Mainland China China Securities Regulatory Commission (CSRC) China Securities Regulatory Commission Official Bulletinpublication China Stock Markets Web Chinese Association of Securities Investment Funds, The (CASIF) Chinese depositary receipt (CDR) Chinese Gold and Silver Exchange Society, The Chinese Institute of Certified Public Accountants (CICPA) Chinese News System Chinese Wall choice market making churning circuit breakers circuit fee claim notice class action shareholder lawsuit classified voting system claw back mechanism clearing Clearing Agency ParticipantCCASS Participants clearing agreement Clearing Consultative Panel clearing house Clearing House Automated Transfer System (CHATS) Clearing House Electronic Subregister System (CHESS)Australia 18

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Clearing Participantoptions trading clearing price Clearing Service Call Centre client account client margin Client Offset Claim Account Client Registered Trader client server architecture client's agreement close out closed-end fund Closer Economic Partnership Arrangement (CEPA) closing auction session closing buyoptions closing contract closing price closing saleoptions closing stock closing transaction closure of books; closure of register cluster server Coalition on Service IndustryHong Kong General Chamber of Commerce Code of Best Practice Code of Conduct Code of Conduct for Share RegistrarsSFC Code of Conduct for Sponsors and Independent Financial Advisers Code on Corporate Governance Practices Code on Investment-linked Assurance Schemes Code on Share Repurchases Code on Takeovers and Mergers cold shoulder order 19

collateral collateral eligibility Collateralised Bond Obligation (CBO) Collateralised Debt Obligation (CDO) Collateralised Loan Obligation (CLO) collateralised repo collateralised warrant collective investment fund collective investment scheme (CIS) co-manager combination order combined net tangible assets combo order comfort letter commercial paper commission rebate Commissioner of Insurance Committee of Payment SystemHKMA Committee on Payment and Settlement Systems, The (CPSS) Committee on Unit TrustsSFC commodities dealer Commodity Futures Trading Commission (CFTC) US Common Collateral Management System (CCMS) common nominee "common nominee" share certificate Common Risk Management System communication status message line Companies Registry Company Bulletin BoardUK Compensation Committee Compensation Fund Reserve Account 20

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compliance adviser compliance officerGEM composite order composite risk composite table composite trades comprehensive income Comptroller of the CurrencyUS compulsory buy-in Compulsory Stock Borrowing and Lending Service in CCASS Computershare Hong Kong Investor Services Limited (CHIS) concentrated position concentration risk concentration risk adjustment concept stock conditional agreement conditional cash offer Conference of Central Securities Depositories (CCSD) Conflict Committee connected person connected transaction consideration consideration issue consideration share consolidated financial statement consolidation constitution construction-in-progress contested takeover contingent liabilities contingent orderLSE contingent premium 21

continuing connected transaction continuing obligation continuing operation continuous auction continuous net settlement (CNS) Continuous Professional Training (CPT) Continuous Quotes contra broker contract for differences (CFD) contract multiplier contract note contract size contract specifications contract unit contracted price contractual mutual fund contrarian contribution control account controller workstation controlling interest controlling shareholder conversionoptions conversion ratio convertible bond convertible note convertible redeemable note convertible securities Co-ordinating Committee on Market Structure Reform core earnings cornering cornerstone investor corporate accounting 22

corporate actions service fee corporate bond corporate communication Corporate Exchange Participant Corporate Finance Association, The (CFA) corporate governance Corporate Investor Account Corporate PlanSFC corporate raider Corporate Substantial Shareholders Notification co-sponsor cost effectiveness cost of carry co-trustee counter order counterparty counterparty risk coupon; coupon rate coupon-reset date coverie close out a short position = buy in covered calloptions covered option covered short selling covered warrant covered writing credit credit control credit limit credit rating credit risk credit squeeze credit trading creditor

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creeper cross collateral cross currency trade cross listing cross margining cross-border listing crossed market crossed trade; cross trade; crossing crossing system crude oil futures cumulative advance cumulative voting currency basket currency board system currency forward currency futures currency translation exposure currency warrant current account custodian Custodian ParticipantCCASS Participants

* Terms commonly used in the Mainland

24

D
DvP DCASS DCI DCP DDF DDI DMT DNS DRP DTB DTC DTCUS see delivery vs payment see Derivatives Clearing and Settlement System see Direct Credit Instruction see Direct Clearing Participant see Digital Data Feed see Direct Debit Instruction see dual mode terminal see Depository and Common Nominee System see Disciplinary Review Panel see Deutsche Terminborse see deposit-taking company see Depository Trust CompanyUS

daily average funds netting efficiency daily average settlement efficiency daily margin daily margin call Daily Movement Statementclearing daily price swing limit daily quotations sheet daily settlement price Daily Trading Activity and Open Positions Summary Reportfutures daily trading limit dark fibre data feed day order day trade day-end batch processing day-end marks de minimus (waiver) provision 25

deal ticket dealer dealer's representative dealing director dealing partnership dealing practice dealing room debenture debit debit balance debt chain debt-for-equity swap debt market debt repayment debt securities debt-to-equity ratio debtor decaying asset Declaration and Undertaking with regard to Directors decumulator dedicated line deemed book close date deemed VAT deep-in-the-money option deep-out-of-the-money option default default recovery contribution defaulter defective securities defence document deferred share deferred tax deflation 26

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delayed data delineation of activities delisting delivery delivery vs payment (DvP) deltaoptions delta hedge delta neutral dematerialisation of share certificate demutualisation denominated in (DM) Deposit-Taking Companies Association, The deposit-taking company (DTC) depositary receipt Depository and Common Nominee System (DNS) depository nominee Depository Trust Company (DTC)US depreciation deregulation deregulation of interest rates derivative action derivative warrant derivatives Derivatives Clearing and Settlement System (DCASS) derivatives market Derivatives Market Consultative Panel designated bank Designated Compliance Officer designated deposit designated securities 27

** Delta delta * *

Designated Specialist designation transfer Deutsche Bundesbank Deutsche Terminborse (DTB) diagonal spread differential reporting Digital Data Feed (DDF) digital information service digital warrant dilution direct business; direct business transaction direct clearing Direct Clearing Participant (DCP) Direct Credit Instruction (DCI) Direct Debit Instruction (DDI) direct stock admissionCCASS Director's / Chief Executive's Notifications directors' fee directors' remuneration directors' report Disciplinary Appeals Committee Disciplinary Casebook Disciplinary Committee disciplinary jurisdiction disciplinary power disciplinary procedures Disciplinary Review Panel (DRP) disclaimer discloseable transaction disclosure disclosure-based disclosure of interests discontinued operations

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28

discount discount broker discount rate discount window discounted cash flow discretionary account discretionary bonus payment discretionary manager discretionary order discretionary power discretionary trust disinflation disinterested shareholder disintermediation dispersionstatistics disqualification order distant month distributable profit distribution distribution in specie dividend dividend accumulator warrant dividend and debt securities interest collection service fee dividend in specie dividend warrant dividend yield documentation risk domestic shareMainland China dormant account fee dormant company Dow Jones Industrial Average Dow Jones Industrial Average Options 29

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download downtick dragon bond dual filing dual listing dual vetting dual mode terminal (DMT) due diligence dynamic hedging

* Terms commonly used in the Mainland

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E
E day EAOSEF EAS price EASDAQ EBRD ECN EDGAR EERI EFIL EFN EGM EIPO eIRC ELI ELN EMSIS EMU EPI EPS EPS ESS ETC ETF ETN early buy-in early warning system earnings per share (EPS) see exercise day see East Asian and Oceanian Stock Exchanges Federation see estimated average settlement price see European Association of Securities Dealers Automated Quotations see European Bank of Reconstruction and Development see electronic communications network see Electronic Data Gathering, Analysis and RetrievalUS see Effective Exchange Rate Index for the Hong Kong Dollar see Exchange Fund Investment Limited see Exchange Fund Note see extraordinary general meeting see Electronic Initial Public Offering service see Electronic Investor Resources Centre SFC see Equity Linked Instrument see equity linked note see Electronic Mailing Stock Information Service see European Economic and Monetary Union see Electronic Payment Instruction see earnings per share see Electronic Publication System see Electronic Submission System see exchange traded commodity see Exchange Traded Fund see exchange traded note

31

East Asian and Oceanian Stock Exchanges Federation (EAOSEF) economic value added Effective Exchange Rate Index for the Hong Kong Dollar (EERI) e-FRRR system Electronic Application Instruction for New Issue Shares electronic communications network (ECN) Electronic Data Gathering, Analysis and Retrieval (EDGAR)US Electronic Disclosure Project Electronic Initial Public Offering service (EIPO) Electronic Mailing Stock Information Service (EMSIS) electronic money settlement fee Electronic Money Settlement Services Electronic Payment Instruction (EPI) Electronic Publication System (EPS) Electronic Submission System (ESS) electronic trading eligible securities Eligible Supervisor E-mail and Group Paging Services emerging market emissions-related product Employee Registered Trader employee shareMainland China employer trustee encumbrances end user End-of-day Trade Data File Transfer Service enhanced access to AMS enhanced digital datafeed enhanced limit order 32

Enhanced Special Stock Trading Method enlarged share capital Enquire Announcement InformationCCASS Enquire Reported Lost CertificateCCASS Enquire Unmatched SI ReasonCCASS enterprise bond Enterprise Information Database Entitlement StatementCCASS entitlement table entry price equilibrium price equity base equity capital; equity share capital equity divisionMainland China equity division reformMainland China equity interest Equity Linked Deposit Equity Linked Instrument (ELI) equity linked note (ELN) equity methodaccounting equity option equity securities equity warrant erroneous trade error trade estimated average settlement price (EAS price) estimated capital value estimated useful life euro / Euro Eurobond Euroclear Euroclear Bank 33

Euro-convertible guaranteed bond European Association of Securities Dealers Automated Quotations (EASDAQ) European Bank of Reconstruction and Development (EBRD) (ie World Bank) European Economic and Monetary Union (EMU) European Parliament European style option Euroyen Tibor Futures ex unadjusted close exceptional item Exchange Auditorium exchange control Exchange Exhibition Hall Exchange Fund Bill Exchange Fund Investment Limited (EFIL) Exchange Fund Note (EFN) Exchange Listing Rules (Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited) exchange loss exchange of information Exchange Participant Exchange Participant Certificate exchange quota exchange surrender system exchange traded commodity (ETC) Exchange Traded Fund (ETF) exchange traded note (ETN) exchange traded option exchange traded product Exchange Trading Right Certificate ex-date ex-dividend basis 34

execution facilities Executive Committee executive director Exempt Fund Manager exempt listing status Exempt Principal Trader exempt trader exercise exercise day (E day) exercise period exercise price exercise price interval exercise schedule exercise style exit price exotic warrant exotic warrant informationTeletext expedited registration service Expert Group to Review the Operation of the Securities and Futures Market Regulatory Structure expiration date expiry date expiry month explanatory memorandum explanatory statement exponentially-weighted moving average exposure draft exposure management ex-rights Extended Morning Session Extended Trading Securities eXtensible Business Reporting Language (XBRL) 35

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Extensible Markup Language external auditor extraordinary general meeting (EGM) extraordinary item extreme move covered fraction extreme move multiplier

* Terms commonly used in the Mainland

36

F
Fannie Mae FIFO FOK FOMC FRC FRCD FRN FRR FRRC FSA FXI China 25 see Federal National Mortgage Association see First in, first out see Fill-or-Kill see Federal Open Market Committee see Financial Reporting Council, The see floating rate certificate of deposit see floating rate note see Financial Resources Rules see Financial Reporting Review Committee see Financial Services AuthorityUK see FTSE / Xinhua China 25 Index

face value Fact Book Fact Sheet fair market value false market Far East Exchange, The fast market fault tolerance favourable marks favourable variance; favourable difference feasibility study Fed wire / Fedwire / FedWire Federal funds Federal funds rate Federal National Mortgage Association (Fannie Mae) Federal Open Market Committee (FOMC) Federal Reserve System Federation of Shares Registrars Limited 37

fellow subsidiary Fidelity Fund fidelity insurance scheme fiduciary fiduciary duty file backup-restore macro file transfer file transfer protocol Fill-or-Kill (FOK) Final Clearing StatementCCASS final review hearing Final Settlement Price Final Settlement Run finance lease commitment financial accommodation financial adviser financial bond financial conglomerate financial exposure financial futures financial institution financial instrument financial integrity financial intermediary financial intermediation financial lease financial market Financial Market Development Task Force, The financial regulation financial reporting Financial Reporting Council, The (FRC) Financial Reporting Review Committee (FRRC) Financial Reporting Review Panel 38

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financial resources rules (FRR) financial results financial risk Financial Services ActUK Financial Services Authority (FSA)UK financial shareholder Financial Supervisory CommissionTaiwan financial year financier financing bill FinNet firm bid and ask quotations firm commitmentunderwriting firm order firm order firm position first in, first out (FIFO) First Supplement to the Addendum to Memorandum of Understanding Governing Listing Matters fixed income ETF fixed-rate mortgage floating rate certificate of deposit (FRCD) floating rate note (FRN) floor trader flotation force majeure forced buy-in forced liquidation foreign exchange exposure foreign shareMainland China forex option forex swap

* ()

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Form for Reporting Dealings in Securities Suspended due to Insufficient Public Float forward entitlement frame relay trading network free convertibility free float Free Text AreaTeletext fringe market front running front-end load front-month front-office system FTSE Group FTSE / Hang Seng Asian Sector Indexes FTSE / Hang Seng Asiatop Index FTSE / Hang Seng Indexes FTSE / Xinhua China 25 Index (FXI China 25) full disclosure fully diluted earnings per share fully paid-up capital fund accounting approach fund balancing fund flow fund manager fund of hedge funds fund statement fund unit holder fund utilisation further issue Futures Compensation Fund Futures Compensation Fund CommitteeSFC

/ / / 25 *

* Terms commonly used in the Mainland

40

G
GAAP GATT GCP GDP GDR GEI GEM GNP GTC GTD GTSM see Generally Accepted Accounting Principles see General Agreement on Tariffs and Trade see General Clearing Participant see gross domestic product see global depositary receipt see Growth Enterprise Index see Growth Enterprise Market see gross national product see good-till-cancelled order see good-till-date order see GreTai Securities MarketTaiwan

gatewaycomputer gearing ratio GEM Investor Guide GEM Listing Committee GEM Listing Rules (Rules Governing the Listing of Securities on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited) General Advisory and Support Working Team General Agreement on Tariffs and Trade (GATT) General Clearing Participant (GCP) general ledger general mandate general offer General Rules of CCASS Generally Accepted Accounting Principles (GAAP) gilt-edged securities give-upoptions global bond global depositary receipt (GDR) 41

Global Equity Market Globex going concernaccounting good for delivery good-for-day order good-till-cancelled order (GTC) good-till-date order (GTD) goods-in-transit goodwill governing law government bond grace period greenshoeunderwriting greenshoe option GreTai Securities Market (GTSM)Taiwan grey market price gross domestic product (GDP) gross margining gross national product (GNP) Growth Enterprise Index (GEI) Growth Enterprise Market (GEM) Guarantee Fund Guarantee Scheme guarantee transaction guaranteed unit trust guarantor Guernsey Financial Services Commission Guidance NoteListing Rules Guide for Directors of Listed Companies Guide on disclosure of price-sensitive information Guide on pre-vetting requirements for announcements Guidelines for Electronic Public Offerings SFC 42

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Guidelines on the Vetting and Regulation of Applications for Listing on the GEM in Hong Kong by Mainland EnterprisesMainland China

* Terms commonly used in the Mainland

43

H
HDR HFI HIBOR HKAB HKAOB HKATS HKCC HKEx HKFE HKFRS HKICL HKICPA HKICS HKIFA HKII HKIMR HKMA HKSCC HKSIR HS100 HSAI HSCCI HSCEI HSCI HSHKCI HSHKLI HSHKMI HSHKSI see Hong Kong Depositary Receipt see Hang Seng China H-Financials Index see Hong Kong Interbank Offered Rate see Hong Kong Association of Banks see Hong Kong Association of Online Brokers, The see Hong Kong Futures Automated Trading System see HKFE Clearing Corporation Limited see Hong Kong Exchanges and Clearing Limited see Hong Kong Futures Exchange Limited see Hong Kong Financial Reporting Standards see Hong Kong Interbank Clearing Limited see Hong Kong Institute of Certified Public Accountants see Hong Kong Institute of Company Secretaries, The see Hong Kong Investment Funds Association see Hong Kong Institute of Investors see Hong Kong Institute for Monetary Research see Hong Kong Monetary Authority see Hong Kong Securities Clearing Company Limited see Hong Kong Standards on Investment Circular Reporting Engagements see Hang Seng 100 see Hang Seng Asia Index see Hang Seng China-Affiliated Corporations Index see Hang Seng China Enterprises Index see Hang Seng Composite Index see Hang Seng Hong Kong Composite Index see Hang Seng HK LargeCap Index see Hang Seng HK MidCap Index see Hang Seng HK SmallCap Index 44

HSI HSITI HSITP HSLRI HSMLCI HSMLFI

see Hang Seng Index see Hang Seng IT Index see Hang Seng IT Portfolio Index see Hang Seng London Reference Index see Hang Seng Mainland Composite Index see Hang Seng Mainland Freefloat Index

haircut Handbook on Disciplinary Proceedings Hang Seng 100 (HS100) Hang Seng Asia Index (HSAI) Hang Seng China-Affiliated Corporations Index (HSCCI) Hang Seng China AH Premium Index Hang Seng China AH Price Indexes Hang Seng China Enterprises Index (HSCEI) Hang Seng China Enterprises Index Futures (Hshares Index Futures) Hang Seng China H-Financials Index (HFI) Hang Seng Composite Index (HSCI) Hang Seng Freefloat 50 Hang Seng Freefloat Composite Index (HSFCI) Hang Seng Freefloat HK 25 Hang Seng Freefloat Mainland 25 Hang Seng FTSE / Xinhua China 25 Index ETF Hang Seng H-Share Index ETF Hang Seng HK Freefloat Index (HSHKFI) Hang Seng HK LargeCap Index (HSHKLI) Hang Seng HK MidCap Index (HSHKMI) Hang Seng HK SmallCap Index (HSHKSI) Hang Seng Hong Kong Composite Index (HSHKCI) Hang Seng Index (HSI) Hang Seng Index ETF 45

100 AH AH (H ) H 50 25 25 25 H

Hang Seng Index Futures Hang Seng Index Options Hang Seng Indexes Company Limited Hang Seng Industry Classification System Hang Seng IT Index (HSITI) Hang Seng IT Portfolio Index (HSITP) Hang Seng London Reference Index (HSLRI) Hang Seng Mainland Composite Index (HSMLCI) Hang Seng Mainland Freefloat Index (HSMLFI) Hang Seng Total Return Index hard currency hawking of securities heavy trading hedge fund hedging hedging ratio Heritage Foundation, TheUS HIBOR Futures Strip hidden-size order high leveraged investment historical cost historical volatility HKATS Error Trade Review Panel HKEx (China) Limited HKEx Electronic Publication System HKEx Information Services Limited HKEx Share Information Board HKExnews website HKFE Clearing Corporation Limited (HKCC) HKSCC Nominees Limited hold matched SI holder of Stock Exchange Trading Right holding company

* HKATS ()

46

Hong Kong Association of Banks (HKAB) Hong Kong Association of Financial Advisors Hong Kong Association of Online Brokers, The (HKAOB) Hong Kong Capital Markets Association Hong Kong Chamber of Small and Medium Business Hong Kong Chinese Enterprises Association Hong Kong Codes on Takeovers and Mergers and Share Repurchases Hong Kong Depositary Receipt (HDR) Hong Kong Exchanges and Clearing Limited (HKEx) Hong Kong Exchanges and Clearing Limited Beijing Representative Office Hong Kong Financial Markets Development Limited Hong Kong Financial Reporting Standards (HKFRS) Hong Kong Futures Automated Trading System (HKATS) Hong Kong Futures Exchange Limited (HKFE) Hong Kong General Chamber of Commerce, The Hong Kong Institute for Monetary Research (HKIMR) Hong Kong Institute of Bankers Hong Kong Institute of Certified Public Accountants (HKICPA) Hong Kong Institute of Chartered Secretaries, The (HKICS) Hong Kong Institute of Directors, The Hong Kong Institute of Financial Analysts and Professional Commentators, The Hong Kong Institute of Investment Analysts Hong Kong Institute of Investors (HKII) Hong Kong Interbank Clearing Limited (HKICL) Hong Kong Interbank Offered Rate (HIBOR) Hong Kong International Arbitration Centre 47

HKATS

Hong Kong Investment Funds Association (HKIFA) Hong Kong Management Association Hong Kong Monetary Authority (HKMA) Hong Kong Mortgage Corporation Limited, The Hong Kong Securities and Futures Industry Staff Union Hong Kong Securities Clearing Company Limited (HKSCC) Hong Kong Securities Institute Hong Kong Securities Market Archives and Artifacts Collection Campaign Hong Kong Securities Professionals Alumni Association Hong Kong Securities Professionals Association Hong Kong Society of Financial Analysts Hong Kong Standards on Investment Circular Reporting Engagements (HKSIR) Hong Kong Stock Exchange, The Hong Kong Stockbrokers Association Hong Kong Stockbrokers Association (1921) Hong Kong Venture Capital Association horizontal spread house account house position H-shares Index Futures (Hang Seng China Enterprises Index Futures) H-shares Index Options HSI International Limited hyperlink

1914 1947 1921 H () H

* Terms commonly used in the Mainland

48

I
IAASB IAS IASB ICA England & Wales ICPA IEP IEV IFAC IFC IFRS iIPO IMF IMRO INED IOC IoD IOMA IOSCO IP IPMA IPO ISD ISDA ISFO ISIN ISMA ISO see International Auditing and Assurance Standards Board, The see International Accounting Standards see International Accounting Standards Board see Institute of Chartered Accountants in England and Wales see Institute of Certified Public Accountants US see Indicative Equilibrium Price see Indicative Equilibrium Volume see International Federation of Accountants see International Finance Corporation see International Financial Reporting Standards see Internet Initial Public Offering service see International Monetary Fund see Investment Management Regulatory Organisation see independent non-executive director see Immediate-or-Cancel see Institute of DirectorsUK see International Options Markets Association see International Organisation of Securities Commissions see Investor Participant see International Primary Markets Association see initial public offering see Investment Services DirectiveEuropean Union see International Swaps and Derivatives Association see International Stock Futures and Options see International Securities Identification Numbers see International Securities Markets Association see International Organisation for Standardisation 49

ISSA IVRS

see International Securities Services Association see Interactive Voice Response System

Ian Hay Davison Report (ie Report of the Securities Review Committee) illiquidity Immediate-or-Cancel (IOC) immobilisation of share certificate implied volatility inactive order income approach indebtedness indebtedness date indebtedness statement independent adviser independent financial adviser Independent Investigation Board independent non-executive director (INED) index arbitrage index basket order index bond index call warrant index depositary receipt / index share index futures Index of Economic Freedom index participation unit index swap index warrant index-linked product indicated issue price Indicative Equilibrium Price (IEP) Indicative Equilibrium Volume (IEV) indicative price 50

indicative terms sheetwarrants individual client Individual Exchange Participant Individual Investor Account individual ratingbanking Individual Substantial Shareholders Notification industry scheme inflation indexed monetary policy information dissemination information memorandum information pack information service information vendor infrastructure project initial listing fee initial marginfutures initial public offering (IPO) Initial Public Offerings Progress Report initial subscription price inner reserve Innovation and Technology Fund input VAT insider dealer insider dealing Insider Dealing Tribunal insolvency insolvency risk Institute of Certified Public Accountants (ICPA) US Institute of Chartered Accountants in England and Wales (ICA England & Wales) Institute of Directors (IoD)UK Institute of Financial Planners of Hong Kong, The Institute of Securities Dealers 51

institutional advancement institutional client institutional investor institutional risk instrument of transfer intangible asset integrated trading and clearing system Interactive Voice Response System (IVRS) interbank market interest collar; interest rate collar interest cover; interest coverage interest-rate ceiling interest-rate futures interest rate subsidyMainland China interest-rate swap Interest Rate Swap Futures interfacing interim report Inter-Market Coordination Committee intermediary intermediate holding company intermediation internal audit internal auditor internal censure internal control International Accounting Standards (IAS) International Accounting Standards Board (IASB) International Auditing and Assurance Standards Board, The (IAASB) International Committee on the Listing of New Enterprises International Federation of Accountants (IFAC) International Finance Corporation (IFC) 52

International Financial Action Task Force International Financial Reporting Standards (IFRS) International Monetary Fund (IMF) International Options Markets Association (IOMA) International Organisation for Standardisation (ISO) International Organisation of Securities Commissions (IOSCO) International Primary Markets Association (IPMA) International Securities Identification Numbers (ISIN) International Securities Markets Association (ISMA) International Securities Numbering System International Securities Services Association (ISSA) International Stock Futures and Options (ISFO) International Swaps and Derivatives Association (ISDA) Internet Initial Public Offering (iIPO) service internet order connection interpretive guidelines in-the-money in-the-money option intraday liquidity intra-day margin intra-day margin call intra-day marks collection mechanism Intra-day Marks Collection Reportclearing intra-day marks payment obligations intra-day money market intraday quotation intraday repurchase agreementbanking intra-group transactions

53

intranet intrinsic value introducing agent introducing broker introductionlisting method inventory investee investment adviser Investment Advisory Committee investment analyst investment grade Investment Management Regulatory Organisation (IMRO) investment philosophy Investment Services Directive (ISD)European Union Investment-linked Assurance & Pooled Retirement Funds CommitteeSFC Investor Account Service Investor Compensation Company Limited Investor Participant (IP) isolated trades systemCCASS issue price issuer issuer electronic filing system Issuer Information Feed Issuer Register issuers cash option

* Terms commonly used in the Mainland

54

J
JBRI see Japan Bond Research Institute

Japan Bond Research Institute (JBRI) jobber jobber stamp duty jobbing transaction Joint Individual Investor Account joint stock company joint venture joint venture contract jumbo certificateCCASS jumbomize junk bond jurisdiction

55

K
Kam Ngan Stock Exchange, The kiting knockout pointCBBC Kowloon Stock Exchange, The

56

L
LAF LAN LAW LBO LIFFE LIFO LOBO LOF LSE LTOM see Liquidity Adjustment FacilityHKMA see Local Area Network see Liquidity Adjustment Window see leveraged buy-out see London International Financial Futures and Options Exchange see last in, first out see Long Only Brokers for Options see listed open-end fund see London Stock Exchange see London Traded Options Market

large cap stock Large Exposure Report Agreement large open position last accounting date last exercise day last in, first out (LIFO) last recorded price; last traded price late reported sales late trading Law Society of Hong Kong, The lead manager lead underwriter leading economic indicator legal entity legal person shareMainland China legal risk lender of last resort lending fee let the buyer beware principle 57

Letter of Exchanges regarding regulatory cooperation for mainland companies to be listed on GEM level playing fieldcf uneven playing field leverage leveraged buy-out (LBO) leveraged foreign exchange introducing agent leveraged foreign exchange trader leveraged foreign exchange trading leveraged market liabilities licence licensed bank licensing information booklet Lifeboat Loan Lifeboat levy light trading limit order limited liability company Link Real Estate Investment Trust, The liquid asset liquid capital liquidation liquidationie forced sale of securities to meet a margin call liquidity Liquidity Adjustment Facility (LAF)HKMA Liquidity Adjustment Window (LAW) liquidity margin liquidity provider liquidity ratio liquidity risk List of Exchange Participants & Holders of Stock Exchange Trading Rights

* * /

58

List of Stock Codes Listed corporation listed issuer listed open-end fund (LOF) listed securities Listing Agreement Listing Appeals Committee Listing Committee Listing Decisions Panel Listing (Disciplinary) Committee Listing (Disciplinary Review) Committee Listing Policy Committee Listing (Review) Committee Listing Review Panel Listing Rules loan capital loan facility loan stock loan syndicate Local Area Network (LAN) Locked-In Return Warrant locked position locked up London International Financial Futures and Options Exchange (LIFFE) London Stock Exchange (LSE) London Traded Options Market (LTOM) Long Broker ParticipantCCASS long-dated index options Long Only Brokers for Options (LOBO) long options contract long position long strangle 59

() () () * *

low-ball offer

* Terms commonly used in the Mainland

60

M
MACD MAP Mass ATI MBO MESDAQ MORC MOU MPF MWS see Moving Average Convergence-Divergence see Market Access Product see Mass Account Transfer Instruction see management buy-out see Malaysian Exchange of Securities Dealing and Automated Quotation Bhd see Memorandum of Regulatory Cooperation see memorandum of understanding see Mandatory Provident Fund see Multi-workstation System

M1 M2 Maastricht Treaty main board Mainland / Hong Kong Closer Economic Partnership Arrangement Mainland / Hong Kong Closer Economic Partnership Arrangement Arrangements relating to Qualifications of Securities and Futures Industry Practitioners maintenance marginfutures major shareholder major transaction maker-checker facilityCCASS Malaysian Exchange of Securities Dealing and Automated Quotation Bhd (MESDAQ) management buy-out (MBO) management fee management shareholder manager mandatory bid; mandatory offer 61

Mandatory Call Event Mandatory Provident Fund (MPF) Mandatory Provident Fund Schemes Authority (MPFA) margin margin call margin client margin coverage ratio margin cut margin financing margin interval margin offset margin parameter margin pooling margin ratio margin relief Margin Securities Trading Account margin trading margin value margin-after-exercise margined premium margining process Market Access Product (MAP) mark the close mark to market / mark-to-market mark-to-market margin market capitalisation Market Datafeed market depth market maker Market Maker List market making market manipulation Market Misconduct Tribunal 62

* *

market order market participant market practitioner market rental market risk market sentiment market share market timing market volatility market-sensitive information marks / marks payment Mass Account Transfer Instruction (Mass ATI) Mass Quotation Facility mass quote master trust scheme maturity maximum spread MDF News Alert Message Memorandum and Articles of Association memorandum of association Memorandum of Regulatory Cooperation (MORC) memorandum of understanding (MOU) merchant bank merger merger by absorption mergers and acquisitions merit-based mid-cap stock Mid-day Data File Transfer Service middle exercise price middle-priced option Mini-Hang Seng China Enterprises Index Futures (Mini H-shares Index Futures) 63

( H )

Mini-Hang Seng Index Futures Mini-Hang Seng Index Options minimum contribution minimum price fluctuation minimum quote quantity minimum response time minimum transaction size Ministry of FinanceMainland China minority controller minority interest minority shareholder minus tick misconduct misrepresentation misstatement mistraded contract mixed media offer mock trading Model Authorisation Letter Model Code for Securities Transactions by Directors of Listed Issuers Model Code for Sponsors monetary assets monetary base Monetary Policy CommitteePBC money broker money laundering money market money settlement fee money supply money transfer system Money World Asia Hong Kong Money World Asia Pte Limited moneyness 64

monies advanced Monthly Balance StatementCCASS Monthly Return on Movement of Listed Securities Moodys Investment Grade moratorium morning session mortgage-backed securities mortgate bond mortgage loan originator Moving Average Convergence-Divergence (MACD) multi-currency trading multi-jurisdictional equity offering Multi-workstation System (MWS) multiple applications multiple-workstations mutual cross-listing mutual fund

* Terms commonly used in the Mainland

65

N
NASDAQ NCP see National Association of Securities Dealers Automated QuotationsUS see Non-Clearing Participant or Non-Clearing Options Trading Participant options trading see non-deliverable forward contract see National Electronic Trading System Mainland China see New Hang Seng MidCap 50 Index see non-H-share Mainland private enterprise see National Social Security Fund 66

NDF NETS New HSMCI NHMPE NSSF naked option writing naked short selling National Association of Securities Dealers Automated Quotations (NASDAQ)US National Bureau of Economic ResearchUS National Bureau of StatisticsMainland China National Construction TreasuryMainland China National Council for Social Security Fund Mainland China National Development and Reform Commission Mainland China National Electronic Trading System (NETS) Mainland China National Interbank Funding CentreMainland China National Social Security Fund (NSSF) National Science and Technology Venture Capital Development Center near-the-money option negative statement negotiable instrument negotiable market capitalisation negotiable share

negotiated commission negotiated transaction net admissible assets net asset value net asset value per share net book value net margining net open options contract; net options position net position net present value net proceeds net tangible assets net tangible assets per share net underwriting commitment net worth ratio netting netting by novationclearing Network Gateway networking New Hang Seng MidCap 50 Index (New HSMCI) new issue news dissemination news file next day net settlement system Next Settlement Day Due / Overdue Position ReportCCASS Nikkei Stock Average nil-paid rights no-action relief no-forcing order No-Over-Loss Rules Nomad (Nominated Adviser)London Stock Exchange nominal exchange rate 67

50 /

nominal price nominal value Nominated Adviser (Nomad) nominee account Non-Clearing Participant; Non-Clearing Options Trading Participant (NCP)options trading non-collateralised warrant non-deliverable forward contract (NDF) non-dividend paying European call option non-dividend paying European put option non-executive director non-H-share Mainland private enterprise (NHMPE) non-market-making transaction non-ranking liabilities non-registered holder non-spot month Hang Seng Index futures contract non-tradable shareMainland China normal order imbalance normative statement notation price Notice on Regulation of Share Issues and Listing in Overseas MarketsState Council notifiable transaction novated contract novation NYSE Euronext

/ */* H

* Terms commonly used in the Mainland

68

O
OAPI ORS OTC see OMnet Application Programming Interface see Order Routing System see over-the-counter

odd lot off-balance sheet exposure off-balance sheet (financial) instrument off-board trading off-floor order off-floor terminal off-floor trading off-market rules off-market share repurchase offer offer by tender offer for sale offer for subscription offer price offer to the public offering mechanism Office of the Commissioner of Insurance offsetting position offshore financial centre offshore fund offshore profit regrouping offshore swap OMnet Application Programming Interface (OAPI) omnibus account omnibus client account on-floor order 69

* / OMnet

on-floor terminal on-going obligation on-line interface on-line investment service On-line Trading Working GroupSFC on-market rules Online CCASS Shareholding Disclosure Service online trading online transfer open allocation sessionHKATS open contract open gateway open interest open market operations open offer open order open outcry= auction open outcry trading open position open short position open-end fund opening contract opening price opening quotations rules opening stock opening transaction Operating Guide for Investor Participants operating lease Operation Procedures for Stamp Duty Collection Operational Clearing Procedures for Options Trading Exchange Participants operational risk

CCASS HKATS * = //

70

Operational Trading Procedures for Options Trading Exchange Participants Optical Ethernet option option buyer option class option contract option holder option position option pricing model option seller option series option valuation option writer optional registration service Options Broker Exchange Participant Options Clearing Officer Options Clearing Officer Examination Options Clearing Rules Options Clients Agreement options delivery instruction options digital datafeed Options Exchange Participant Options Information Service options tariff options trade confirmation Options Trading Exchange Participant Options Trading Officer Options Trading Officer and Representative Examinations Options Trading Representative Options Trading Rules order order at discretion 71

order book Order Consideration Limit order-driven order entry order form order input period order instruction order matching order matching period order routing Order Routing System (ORS) order throughput rate ordinary share OTC Bulletin BoardUS out-of-the-money out-of-the-money option outliers output VAT outstanding contingent liabilities outstanding loan outstanding order outstanding stock over-allotment option over-allotment option scheme over-the-counter (OTC) over-the-counter derivative over-the-counter market over-the-counter option overall position overbooked overbought overnight liquiditybanking Overnight Report DistributionCCASS 72

* // *

overnight trade overseas issuer overseas listed foreign shareMainland China oversold oversubscribed overtrading

* Terms commonly used in the Mainland

73

P
Paif PASLA PBC PCS P/E PECC PIN PIOB PKI PMNC PNS POSIT PPP PriME PSE PSS PvP see ABF Pan Asia Bond Index Fund see Pan Asian Securities Lending Association see Peoples Bank of China see Provisional Clearing Statement see price / earnings ratio see Pacific Economic Cooperation Council see personal identification number see Public Interest Oversight Board see Public Key Infrastructure see Panel Member Nomination Committee see Proprietary Network System see Portfolio System for Institutional Traders Australia see purchasing power parity see Portfolio Risk Margining System of HKEx see Pacific Stock Exchange see Participant Supplied System see payment vs paymentbanking

P chip PABX Telephone System Pacific Economic Cooperation Council (PECC) Pacific Stock Exchange (PSE) Pacific-Basin Capital Markets Research Center paid-up capital; paid-in capital painting the tape Pan Asian Securities Lending Association (PASLA) Panel Member Nomination Committee (PMNC) paper gold paper intensive settlement paperless trading paper-to-paper arrangement 74

par value parallel trading parent company parityoptions parity value partially filled order Participant Access Servicesfutures Participant Email System Participant Financial Resources Surveillance System Participant gateway Participant Shareholding Report Participant Supplied System (PSS) Particular TransferMainland China partly-paid share payment vs payment (PvP)banking payoff payoff diagram payoff period Payout-Protection Ruleoptions pegged exchange rate pegged rate system penny stock pension fund People's Bank of China (PBC) per capita gross domestic product per capita gross national product period of solicitation perpetual bond personal account dealing guidelines personal identification number (PIN) phishing physical delivery physical inventory 75

physical market physical price physical scrip Pilot Program for Direct Foreign Portfolio Investments by Domestic Individuals Pink SheetsUS pit pit trading placee placing placing agent placing and top-up placing guidelines placing order plain vanilla bond plain vanilla warrant pledge plus tick Policy Paper on Securities and Futures Market Reform, A port connection fee portfolio Portfolio Analyseroptions portfolio manager Portfolio Risk Margining System of HKEx (PRiME) Portfolio System for Institutional Traders (POSIT) Australia position position adjustment position limit position limit ratio position ratio position risk adjustment position squaring 76

position tradercommodity market post-listing acquisition post-trade transaction power of attorney power of sanction Practice NoteListing Rules PRC issuer predatortakeover Predefined Futures Calendar Spreads pre-emptive right preference / preferred share preferred ordinary share Pre-market Opening Mechanismfutures pre-market opening session pre-open allocation sessionHKATS premium premiumfutures premiumoptions premium turnover pre-order matching period Preparatory Board prescribed percentage previous closing price price cheating price discovery price manipulation price ramping Price Reporting Systemfutures price spread price / earnings ratio (P/E) price-sensitive information price-to-book ratio pricing model primary listing 77

HKATS * *

Primary Market Database primary market primary sponsor principal account principal supervisorGEM principle of best execution Priority Construction TreasuryMainland China private equity fund private fibre optical circuit private placing privately-offered fund privatisation privileged user pro forma fully diluted price / earnings ratio pro forma statement Process Review Panel Professional Course for Equity Options Practitioners profit profit and loss account profit forecast profits attributable to shareholders programme trading project finance Project on the Use of Plain Language promoter Proof of Concept property gains tax property valuer proposed director proprietary account Proprietary Network System (PNS) proprietary routing terminal 78

* * *

proprietary trading proprietary trading system prospectus Protection of Investors Ordinance Provident Fund Scheme provision provisionaccounting provision for bad and doubtful debts Provisional Clearing Statement (PCS) provisional letter of allotment provisional liquidator proxy form prudence public address system public censure Public Debt (Inflation-Linked Subsidy) Treasury Mainland China public float public float capitalisation public interest Public Interest Director Public Interest Oversight Board (PIOB) Public Key Infrastructure (PKI) public shareMainland China Public Shareholders GroupSFC Public Viewing Room purchasing power parity (PPP) put option put warrant put writer
* Terms commonly used in the Mainland

* *

79

Q
QDII QFII see Qualified Domestic Institutional Investor see Qualified Foreign Institutional Investor

qualification share Qualified Domestic Institutional Investor (QDII) Qualified Foreign Institutional Investor (QFII) qualified opinion Quick Reference GuideAMS quiet trading quotation broker quotation order quotation rules quote quote maintenance report quote request quote-driven

* *

* Terms commonly used in the Mainland

80

R
Range ELI RDDS REIT repo RFQ RIQ RSI RTGS see Range Equity Linked Instrument see Realtime Digital Data Service see real estate investment trust see repurchase agreement see request for quote see Recognised Industry Qualifications see Relative Strength Indicator see Real Time Gross Settlement System HKMA

raidertakeover rally ramping random assignment Range Equity Linked Instrument (Range ELI) ranking liabilities rat trading rate of return real estate investment trust (REIT) real exchange rate real time calculation Real Time Gross Settlement system (RTGS) HKMA real time information realisation Realtime Digital Data Service (RDDS) realtime digital datafeed rebate recapitalisation receiving agent receiving bank Recognised Industry Qualifications (RIQ) 81

reconciliation recoverable VAT red chip redeemable share redemption rediscount regional index call warrant register of members registered certificate registered dealer registered financier registered firm registered intermediary registered owner registered securities registered shareholder Registered Trader Registered TreasuryMainland China registrar Registrar of Companies registration and transfer fee regulated short selling regulation regulatory arbitrage regulatory body regulatory regime rejected sales Rejection Letter related company related party transaction related person relationship of put-call parity relative return Relative Strength Indicator (RSI) 82

**

rematerialisation Remote Access Client Remote Exchange Participant remote trading access remuneration package reorganisation replacement cost re-pledging Report on Financial Market Review reporting accountant reporting period reprimand repurchase repurchase agreement (repo) request for proposal request for quote (RFQ)options required rate of return reserve reserve fund response time responsibility letter responsibility statement restatement of accounts restricted licence bank restriction notice results announcement resumption of trading retail broker retail information service retail investor retained capital retained earnings; retained income retained profits retention interest 83

return on equity revaluation reversal contractoptions reverse convertibles reverse takeover revised short selling scheme rights issue risk array algorithm risk array margining system risk array method risk control risk disclosure Risk Disclosure StatementGEM risk evaluation risk identification risk management Risk Management Committee risk parameter risk tolerance risk-free interest rate roadshow Rolling Forex roll-over round lot round trip option transaction round-lot-plus order router system Rules Governing the Listing of Securities on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited (GEM Listing Rules) Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (Main Board Listing Rules) Rules of the Exchange 84

runner rural credit cooperative Mainland China

* Terms commonly used in the Mainland

85

S
SAAC SAC SAFE SASAC SBLA SCCLR SCEFI SCORE SCP SEAQ SEAQI SEATS SEC SEHK SEIS SEOCH SESDAQ SFAT SFC SGX SI SIMart SIB SMARTS SME Board see Securities Analysts Association of China see Securities Association of China, The see State Administration of Foreign Exchange Mainland China see State-owned Assets Supervision and Administration Commission see securities borrowing and lending agreement see Standing Committee on Company Law Reform see Steering Committee on the Enhancement of Financial Infrastructure, The see Stock Options Reference Educator see Self Clearing Participant see Stock Exchange Automated Quotations SystemUK see Stock Exchange Automated Quotations System for International EquitiesUK see Stock Exchange Alternative Trading Service UK see Securities and Exchange CommissionUS see Stock Exchange of Hong Kong Limited, The see Stock Exchange Information Services Limited see SEHK Options Clearing House Limited, The see Stock Exchange of Singapore Dealing and Automated Quotation System see Securities and Futures Appeals Tribunal see Securities and Futures Commission, The see Singapore Exchange see settlement instruction see Simulated Investment Market see Securities and Investment BoardUK see Securities Markets Automated Research Training & Surveillance see Small and Medium Enterprise Board Shenzhen Stock Exchange 86

SMFP SOES SPAN SPDR SRN SSAP STAQS SWIFT

see share margin finance provider see Small Order Entry System / Small Order Execution SystemUS see Standard Portfolio Analysis of Risk see Standard & Poors Depositary Receipt see Shareholder Reference Number see Statement of Standard Accounting Practice see Securities Trading Automated Quotation SystemMainland China see Society for Worldwide Interbank Financial Telecommunications

S&P / HKEx Composite S&P / HKEx GEM S&P / HKEx LargeCap S&P / HKEx MidCap 25 S&P / HKEx SmallCap 50 safe harbour sales representative sales revenue salvage value same day exercise samurai bond scalable scalping scheme of arrangement screen scrip dividend scrip entitlement scrip fee scrip issue scripless trading SDNet seasoned securities 87

/ / / / 25 / 50 *

second board second liner; second line stock second market secondary listing secondary market secured debts Securities (Disclosure of Interests) Notification History Reports Securities (Disclosure of Interests) Notification Summariespublication Securities Analysts Association of China (SAAC) Securities and Exchange ActTaiwan Securities and Exchange Commission (SEC) US Securities and Futures Appeals Panel Securities and Futures Appeals Tribunal (SFAT) Securities and Futures BureauTaiwan Securities and Futures Commission, The (SFC) Securities and Futures Market Development Working Group Securities and Futures (Stock Market Listing) Rules Securities and Investment Board (SIB)UK Securities Association of China, The (SAC) securities borrowing and lending agreement (SBLA) securities collateral Securities Compensation Fund Committee SFC securities investment fund securities lender securities margin financier Securities Markets Automated Research Training & Surveillance (SMARTS) Securities Offering Issues sub-group Securities Trading Automated Quotation System (STAQS)Mainland China 88

* ()

Securities Training Programme securities-on-hold mechanism securitisation securitisation ratio security security arrangement security interest see-through price segregated trust account segregation of securities SEHK Enquiry Hotline SEHK Options Clearing House Limited, The (SEOCH) selective marketing basis Self Clearing Participant (SCP) self-clearing self-regulatory organisation; self-regulating organisation sell order sensitivity analysis SEOCH collateral SEOCH Participant separate listing Serial Month Hibor Futures series margin value Sesops (Singapore Exchange Securities Order Processing System) set off Settled Position ReportCCASS settlement settlement backlog settlement bank settlement cap settlement date settlement instruction (SI) 89

* * *

Settlement Instruction Batch UploadCCASS settlement instruction transaction settlement period Settlement ReportCCASS settlement risk SFC (HKEC Listing) Appeals Committee SFC (HKEC Listing) Committee SFC (HKEC Listing) Executive SFC Alert SFC Dual Filing Advisory Group SFC Enforcement Reporter shadow director Shanghai Composite Index Shanghai Municipal Futures Industry Association Shanghai Petroleum Exchange Shanghai Securities Central Clearing and Registration Corporation Shanghai-Shenzhen 300 Index Shanghai Stock Exchange Shanghai United Assets and Equity Exchange Share Allotment Report share capital share entitlements share exchange share incentive mechanism share margin finance provider (SMFP) share margin financing share option share register share registrar share repurchase share scheme shareholder loan Shareholders GroupSFC 90

300

shareholding shareware shelf registration facility Shenzhen Securities Clearing Company Limited Shenzhen Securities Registration Company Limited Shenzhen Stock Exchange Short Broker ParticipantCCASS short call short interest short option short options contract short position short put short seller short selling / short sale Short Selling Pilot Scheme short squeeze short term borrowings short-dated securities short-term money SI Activity ReportCCASS SI Batch File Service SI Status ReportCCASS SI transaction significant shareholderGEM Simulated Investment Market (SIMart) simulation system Singapore Exchange (SGX) single price auction system single share derivative warrant sinking fund Sino-foreign equity joint venture slow trading 91

* *

Small and Medium Enterprise Board (SME Board) Shenzhen Stock Exchange small cap stock Small Order Entry System / Small Order Execution System (SOES)US Small Order First-In-First-Out snapshot Society for Worldwide Interbank Financial Telecommunications (SWIFT) soft commission soft currency soft landing soft-dollar benefits sole proprietor source code sovereign debt sovereign risk soybean futures Special Levy special limit order Special TreasuryMainland China Special TreatmentMainland China specialised bank Specialist SystemUS speed bump spin-off split Split Register sponsor Sponsor's Declaration sponsoring broker spot market spot month spot price spread 92

* *

spread spread margin spread of holders spread of sector spread option spread order spread rate spread table spread trading spread warrant squeeze SSE Corporate Governance Sector stagflation staggering maturities stakeholder stamp duty Standard & Poor's Depositary Receipt (SPDR) Standard & Poor's Rating standard accounting practice Standard Combination Order Book standard contract standard deviation standard deviation of daily return Standard Portfolio Analysis of Risk (SPAN) standard registration service Standing Committee on Company Law Reform (SCCLR) standstill agreement standstill return State Administration for Industry and Commerce Mainland China State Administration of Foreign Exchange (SAFE) Mainland China 93

/ * * 500

State Administration of TaxationMainland China State Economic and Trade Commission Mainland China state shareMainland China statement of "non-owner movement in equity" statement of account statement of adjustments Statement of Standard Accounting Practice (SSAP) Statement of Stock MovementCCASS State-owned Assets Supervision and Administration Commission (SASAC) Mainland China state-owned enterpriseMainland China static information statutory public welfare fundMainland China statutory reserve statutory surplus reserveMainland China Steering Committee on Organisational Review SEHK Steering Committee on the Enhancement of Financial Infrastructure, The (SCEFI) stock appreciation right stock borrowing and lending stock borrowing and lending position information pageTeletext stock clearing fee stock code Stock Collateral Control Account stock conversion stock custody fee stock deposit fee Stock Deposit Form Stock Eligibility Schedule

94

Stock Exchange Alternative Trading System (SEATS)UK Stock Exchange Automated Quotations System (SEAQ)UK Stock Exchange Automated Quotations System for International Equities (SEAQI)UK Stock Exchange Information Services Limited (SEIS) Stock Exchange of Hong Kong Limited, The (SEHK) Stock Exchange of Singapore Dealing and Automated Quotation System (SESDAQ) Stock Exchange Participants' Market Share Report Stock Exchange Trading Right stock futures stock lender Stock Lender ParticipantCCASS Participant Stock Lending Accountclearing Stock Market History Project Stock Market Information Donation Programme stock option Stock Options Reference Educator (SCORE) stock pageTeletext stock pledgee Stock Pledgee ParticipantCCASS Participants stock return Stock Segregated Account with Statement Service CCASS stock settlement fee stock split stock withdrawal fee Stockbrokers' Association of Hong Kong (1891) stop limit order stop order; stop-loss order straddleoptions 95

1891 *

straight bond straight-through processing straightline method of depreciation strangleoptions strategic investor stray value streaming data "street name" share certificate strike priceoptions strong dollar stub period sub-commission sub-index sub-ledger subordinated loan subscription subscription warrant (vs derivative warrant) subsidiary substantial shareholder sub-underwriter summary financial report summary offence supervisorMainland China supervisory committeeMainland China supplemental / supplementary listing document supranational entity surplus reserve suspended trading; suspension suspense account swap Swiss Commodities, Futures and Options Association syndicated credit syndicated lending 96

* * / / / *

syndicated loan synthetic long call synthetic option synthetics system access right System Access Right Feeoptions system capacity system closure system integrator system parameter system sizing systematic risk

* Terms commonly used in the Mainland

97

T
TAIEX TAIFEX TIGER TIPS TOPIC TOPS TMF TPC TraHK see Taiwan Stock Exchange Capitalisation Weighted Stock Index see Taiwan Futures Exchange see Taiwan Innovative Growing Entrepreneurs see Theoretical Indicative Pricing System futures see Teletext Output of Price Information by ComputerUK see Traded OPtions System see Treasury Markets Forum of Hong Kong see Third Party Clearing see Tracker Fund of Hong Kong

T+2 T + 2 settlement system T + 3 RuleUS tactical investor tailor-made combo order tailsoptions Taiwan Futures Exchange (TAIFEX) Taiwan Innovative Growing Entrepreneurs (TIGER) Taiwan Securities Central Depository Company Limited Taiwan Stock Exchange Capitalisation Weighted Stock Index (TAIEX) Taiwan Stock Exchange Corporation take-upoptions takeover Takeovers & Mergers PanelSFC Takeovers Appeal CommitteeSFC tap facility tap issue 98

T + 2 T + 2 T + 3 * ( ) *

tariff tax avoidance tax break tax concession tax evasion tax rebate; tax refund tax relief taxable income Taxation Institute of Hong Kong technical analysis Teletext Teletext carrier charge Teletext Information Service Teletext Output of Price Information by Computer (TOPIC)UK Teletext page Teletext video broadcast service temporary receipts Temporary Suspension Status Report tender procedure term bond term sheet Terms and Conditions for Investor Participants terms of reference theme inspection Theoretical Indicative Pricing System (TIPS) futures theta third liner Third Party Clearing (TPC) throttle rate throughput rate tick (size) tick rule 99

* TOPIC

tick value tieroptions TIGER BoardTaiwan time premium time spread time stamp time value tipper top up placing top-up total margin value total market capitalisation township and village enterprises toxic convertible track record Tracker Fund of Hong Kong (TraHK) tradable shareMainland China trade acceptance trade amendment trade give-upsoptions trade reversalsoptions trade-for-trade settlement traded option Traded OPtions System (TOPS) trader jacket trading ahead Trading and Settlement Committee trading booth trading calendar trading capacity trading day trading facilities Trading Fee trading floor; trading hall 100

trading halt "trading only" stock trading parameter trading pit trading record Trading Right trading tariff trading unit trading workstation trading-only board transaction confirmation order Transaction Levy transfer transfer agent transfer deed transfer deed stamp duty transfer fee transfer form transferee transferor translation transparency Treasuries treasury bond futures Treasury Markets Association Treasury Markets Forum of Hong Kong (TMF) treasury stock trial balance triangular debt trustee T-share Index turnover rate turnover ratio turnover velocity 101

* * () *

two-sided order two-state option valuation model two-way quote

* Terms commonly used in the Mainland

102

U
UAT UCITS UPS see user acceptance test see Undertakings in Collective Investments in Transferable Securities see uninterrupted power supply

ultimate beneficial holder ultimate beneficiary ultimate originator umbrella fund unappropriated profits uncertificated shareholder unclaimed brokerage unconditional and irrevocable guarantee unconditional cash offer uncovered call uncovered option uncovered short selling underbooked underlying asset underlying securities underlying stock undersubscribed Undertakings in Collective Investments in Transferable Securities (UCITS) underwrite underwriter underwriting syndicate undistributed profits uneven playing fieldcf level playing field unfair prejudice remedy unfavourable marksCCASS 103

* *

unfavourable variance; unfavourable difference Unified Exchange Compensation Fund Uniform Cash Clients Agreement Uniform Margin Clients Agreement unincorporated registered person uninterrupted power supply (UPS) unit trust unitary board system universal clearing house unregulated issuer unsecured loan uptick uptime used market useful life user access user acceptance test (UAT) User ID user pay principle

* Terms commonly used in the Mainland

104

V
VAT VEF VSR see value added tax see Vendor Electronic Filing System see Volatility Scan Range

valuation report value added tax (VAT) value of equity capital value-added service value-at-risk valuer variable contribution variable-rate mortgage variation adjustment Vendor Electronic Filing System (VEF) venture capital verification notes vertical spread very substantial acquisition very substantial disposal vetting viatical settlements Viewing Gallery virtual market volatility Volatility Scan Range (VSR)

**

* Terms commonly used in the Mainland

105

W
WFE WPIP waiver warrant warranty wash sale / wash trade wasting assetoptions web-hosting site Web Proof Information Pack (WPIP) Web Proof Prospectus Website Disaster Recovery Project Weighted IndexTaiwan Stock Exchange whistleblowing policy whitewash transaction wholly-owned subsidiary Wide Area Network Window Barrier Warrant working capital Working Group on Corporate Communications Working Group on Corporate Governance Working Group on Debt Market Working Group on New Market Development Working Group on Plain Language Working Group on Review of Financial Regulatory Framework for Intermediaries Working Group on Review of the Financial Regulatory Framework for Licensed Corporations Working Group on Stockbroking in Hong Kong Working Group on the Business Environment of the Stockbroking Industry 106 see World Federation of Exchanges see Web Proof Information Pack *

working order World Bank World Federation of Exchanges (WFE) write a call option write a put option write off writeroptions

* Terms commonly used in the Mainland

107

X
XBRL see eXtensible Business Reporting Language

108

Y
Yankee bond yield yield curve yield to maturity

109

Z
zero coupon bond zero-minus tick zero-plus tick zero strike derivative warrant zero-sum game zero-trading day

110