Arrangements for Adjustment of Great Wall Motor Structured Products and Options
Market Operations
01 Sep 2015
Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to Great Wall Motor Company Limited (Great Wall Motor) structure products and options to account for Great Wall Motor’s bonus issue.
Overview
|
Company (Stock Code)
|
Great Wall Motor Company Limited(2333)
|
|
Corporate Action
|
20 new shares for every 10 shares in issue
|
|
Ex-bonus day
|
30 September 2015
|
For details of the announcements made by Great Wall Motor on 28 August 2015, please refer to the hyperlink below:
http://www.hkexnews.hk/listedco/listconews/sehk/2015/0828/LTN201508281772.pdf
Highlights of the adjustment arrangements are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
Structured products with shares of Great Wall Motor as underlying asset
The listing documents of all existing structured products with the shares of Great Wall Motor as underlying asset contain provisions that deal with a bonus issue. Structured product issuers will make announcements in the evening of 29 September 2015 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price as appropriate) and investors should read the contents of such announcements carefully.
Great China Motors Options
Trading Arrangements
The trading arrangements for the existing Great Wall Motor stock options under trading symbol GWM will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions |
|
Open positions of Great Wall Motor stock option series under trading symbol GWM which exist after the market close on the business day immediately before the ex-bonus day will be adjusted and transferred to stock option series under trading symbol GWA. |
| 2. |
Introduction of New Stock Option Series for Trading |
|
On the ex-bonus day, new Great Wall Motor stock option series based on the standard contract size will be introduced for trading under the standard trading symbol GWM. |
Details of the adjustment procedures for Great Wall Motor stock options series under trading symbol GWM are as follows:
|
Adjustment Ratio (AR)
|
10 shares / (10 shares + 20 bonus shares)= 0.3333
|
Rounded to the nearest 4 decimal places
|
|
Adjusted Exercise Price (AEP)
|
Exercise price of outstanding stock option series x AR
|
Rounded to the nearest 2 decimal places
|
|
Adjusted Contract Size (ACS)
|
Exercise price of outstanding stock option series x (500 shares / AEP)
|
Rounded to the nearest 4 decimal places
|
|
Adjusted
|
GWA
|
ACS
|
From ex-bonus day to29 September 2016
|
No
|
|
Standard
|
GWM
|
500
|
From ex-bonus day onwards
|
Yes
|
Investors should note that the adjusted and standard stock option series will have different contract sizes. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.
For detailed trading and clearing operational arrangement, please refer to the SEHK circular.
Ends