Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to the contract terms of all open China CITIC Bank options contracts in existence after the market close on 29 June 2011 to account for China CITIC Bank’s rights issue comprising two H rights shares for every 10 existing H shares held.
Highlights of the adjustment arrangements are shown below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
Adjustment Procedures
Adjustments will be made to the open positions which exist after the market close on 29 June 2011, the business day immediately before the ex-rights day. Details of the adjustment procedures are as follows:
* |
Where $4.01 is the issue price for the new shares and $S is the underlying stock closing price on the business day
(29 June 2011) prior to the ex-rights day |
Trading of Adjusted and Standard Contracts
After the market close on 29 June 2011, the business day immediately before the ex-rights day, the open positions will be transferred to the adjusted option series. In addition, new option series based on the standard contract size will be introduced for trading on the ex-rights day, 30 June 2011. Details of the adjusted and standard contracts available for trading on and after the ex-rights day are shown below: