Arrangements for Adjustment of SOHO China Futures
Market Operations
09 Mar 2016
Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to SOHO China Ltd (SOHO China) futures to account for SOHO China’s special dividend.
Overview
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Company (Stock Code)
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SOHO China (410)
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Corporate Action
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Special Dividend of RMB0.348 per share
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Ex-date
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20 May 2016
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The special dividend amount per share in Hong Kong dollars will be announced in due course.
For details, please refer to the announcement made by SOHO China on 8 March 2016.
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.
SOHO China Futures
Trading Arrangements
The trading arrangements for the existing SOHO China stock futures under trading symbol SOH will be as follows:
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1.
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Adjustment and Transfer of Outstanding Positions
Open positions of SOHO China stock futures series under trading symbol SOH which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock futures series under trading symbol SOB.
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2.
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Introduction of New Stock Futures Series for Trading
On the ex-date, new SOHO China stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol SOH.
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Details of the adjustment procedures for SOHO China stock futures series under trading symbol SOH are as follows:
| Adjustment Term |
Formula |
Remarks |
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Adjustment Ratio (AR)
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(underlying stock closing price – special dividend) /underlying stock closing price
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Rounded to the nearest 4 decimal places
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Adjusted Contracted Price (ACP)
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Contracted price of outstanding stock futures series x AR
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Rounded to the nearest 2 decimal places
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Adjusted Contract Multiplier (ACM)
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Contracted price of outstanding stock futures series x (10,000 shares / ACP)
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Rounded to the nearest 4 decimal places
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| Contract |
Trading Symbol |
Contract Multiplier (Shares) |
Availability For Trading |
Addition of New Stock Futures Series on and after the ex-date |
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Adjusted
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SOB
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ACM
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From ex-date to29 December 2016
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No
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Standard
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SOH
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10,000
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From ex-date onwards
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Yes
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Investors should note that the adjusted and standard stock futures series will 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.
For detailed trading and clearing operational arrangement, please refer to the circular.
Ends