Arrangements for Adjustment of Ping An Structured Products, Futures and Options
Market Operations
23 Mar 2015
Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to Ping An Insurance (Group) Co. of China Ltd (Ping An) structured products, futures and option contracts to account for Ping An’s proposed issue of bonus shares.
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.
|
Underlying Stock (Stock Code) |
Ping An Insurance (Group) Co. of China Ltd (2318) |
|
Corporate Action |
10 Bonus Shares for every 10 existing Shares |
|
Ex-bonus day |
27 July 2015 |
For details of the proposed issue of bonus shares, please refer to the announcement made by Ping An on 19 March 2015.
Structured products with shares of Ping An as underlying asset
The listing documents of all existing structured products with the shares of Ping An as underlying asset contain provisions that deal with a bonus issue. Structured product issuers will make announcements in the evening of 24 July 2015 regarding the relevant adjustments (including the adjusted entitlement, adjusted exercise price and adjusted call price as appropriate) and investors should read the contents of such announcements carefully.
Ping An Futures
Trading Arrangements
The trading arrangements for the existing Ping An stock futures under trading symbol PAI will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of Ping An stock futures series under trading symbol PAI which exist after the market close on the business day immediately before the ex-bonus day will be adjusted and transferred to stock futures series under trading symbol PAA.
|
| 2. |
Introduction of New Stock Futures Series for Trading
On the ex-bonus day, new Ping An stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol PAI. |
Details of the adjustment procedures for Ping An stock futures series under trading symbol PAI are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
10 shares / (10 shares + 10 bonus shares)= 0.5000 |
Rounded to the nearest 4 decimal places |
|
Adjusted Contracted Price (ACP) |
Contracted price of outstanding stock futures series x AR |
Rounded to the nearest 2 decimal places |
|
Adjusted Contract Multiplier (ACM) |
Contracted price of outstanding stock futures series x (500 shares / ACP) |
Rounded to the nearest 4 decimal places |
|
Contract |
Trading Symbol |
Contract Multiplier(Shares) |
Availability For Trading |
Addition of New Stock Futures Series on and after the ex-bonus day |
|
Adjusted |
PAA |
ACM |
From ex-bonus day to 30 March 2016 |
No |
|
Standard |
PAI |
500 |
From ex-bonus day onwards |
Yes |
Investors should note that the adjusted and standard stock futures series have different contract multipliers. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.
Ping An Options
Trading Arrangements
The trading arrangements for the existing Ping An stock options under trading symbol PAI will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of Ping An stock option series under trading symbol PAI 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 PAA.
|
| 2. |
Introduction of New Stock Option Series for Trading
On the ex-bonus day, new Ping An stock option series based on the standard contract size will be introduced for trading under the standard trading symbol PAI. |
Details of the adjustment procedures for Ping An stock option series under trading symbol PAI are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
10 shares / (10 shares + 10 bonus shares) = 0.5000 |
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 |
|
Contract |
Trading Symbol |
Contract Size
(Shares) |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-bonus day |
|
Adjusted |
PAA |
ACS |
From ex-bonus day to 29 June 2016 |
No |
|
Standard |
PAI |
500 |
From ex-bonus day onwards |
Yes |
Investors should note that the adjusted and standard stock option series 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.
Ends