Scenario IV    Volatile downward trend
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In a volatile downward trend,

where the Index may generally move downward over a period
longer than 1 Business Day but with volatility, the Product‟s performance may be adversely affected in that the Product‟s performance may fall short of that of -1x the cumulative Index return. As illustrated in the scenario below, where the market fell by 11% over 5 days but with daily volatility, the Product‟s accumulated gains are 9% which is less than the 11% 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%
15%105.005%-5%HK$9.50-5%-5%
2-10%94.50-6%10%HK$10.455%6%
37%101.121%-7%HK$9.72-3%-1%
4-12%88.98-11%12%HK$10.889%11%