Scenario II    Continuous downward trend
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In a continuous downward trend,

where the Index falls steadily for more than 1 Business Day,
the Product‟s accumulated gains will be greater than -1x the cumulative Index return. As illustrated in the scenario below, where an investor invested in the Product on day 0 and the market falls by 10% daily for 4 Business Days, by day 4 the Product would have appreciated by 46%, which is greater than the 34% gain which is -1x the cumulative Index return.

Index accu. Return
-1x of Index accu. Return
Inverse product accu. Return
DayIndex daily returnIndex levelIndex cumulative returnInverse product Daily ReturnInverse product NAVCumulative performance of Inverse productCumulative performance of -1x of Index
0-100.000%-HK$10.000%0%
1-10%90.00-10%10%HK$11.0010%10%
2-10%81.00-19%10%HK$12.1021%19%
3-10%72.90-27%10%HK$13.3133%27%
4-10%65.61-34%10%HK$14.6446%34%