Arrangements for Adjustment of Henderson Land Structured Products, Futures and Options
Market Operations
23 Mar 2016
Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to Henderson Land Development Company Limited (Henderson Land) structured products, futures and options to account for Henderson Land's bonus issue.
Overview
|
Company (Stock Code) |
Henderson Land (12) |
|
Corporate Action |
1 new share for every 10 shares held |
|
Ex-date |
6 June 16 |
For details, please refer to the announcement made by Henderson Land on 21 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.
Structured products with shares of Henderson Land as underlying asset
The listing documents of all existing structured products with the shares of Henderson Land as underlying asset contain provisions that deal with a bonus issue. Structured product issuers will make announcements in the evening of 3 June 2016 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price) and investors should read the contents of such announcements carefully.
Henderson LandFutures
Trading Arrangements
The trading arrangements for the existing Henderson Land stock futures under trading symbol HLD will be as follows:
|
1.
|
Adjustment and Transfer of Outstanding Positions
Open positions of Henderson Land stock futures series under trading symbol HLD 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 HLA.
|
|
2.
|
Introduction of New Stock Futures Series for Trading
On the ex-date, newHenderson Landstock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol HLD.
|
Details of the adjustment procedures for Henderson Land stock futures series under trading symbol HLD are as follows:
|
Adjustment Term
|
Formula
|
Remarks
|
|
Adjustment Ratio (AR)
|
10 shares / (10 shares + 1 bonus share)= 0.9091
|
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
(1,000 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-date
|
|
Adjusted
|
HLA
|
ACM
|
From ex-date to29 December 2016
|
No
|
|
Standard
|
HLD
|
1,000
|
From ex-date onwards
|
Yes
|
Investors should note that the adjusted and standard stock futures 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.
Henderson Land Options
Trading Arrangements
The trading arrangements for the existing Henderson Landstock options under trading symbols HLD and HLE will be as follows:
|
1.
|
Adjustment and Transfer of Outstanding Positions
Henderson Landstock option series under trading symbols HLD and HLE1which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock option series under trading symbols HLA and HLB respectively.
|
|
2.
|
Introduction of New Stock Option Series for Trading
On the ex-date, newHenderson Landstock option seriesbased on the standard contract sizewill be introduced for trading under the standard trading symbol HLD.
|
Details of the adjustment procedures for Henderson Land stock options series under trading symbol HLD are as follows:
|
Adjustment Term
|
Formula
|
Remarks
|
|
Adjustment Ratio (AR)
|
10 shares / (10 shares + 1 bonus share)= 0.9091
|
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
(1,000 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-date
|
|
Adjusted
|
HLA
|
ACS
|
From ex-date to29 June 2017
|
No
|
|
Standard
|
HLD
|
1,000
|
From ex-date onwards
|
Yes
|
Details of the adjustment procedures for Henderson Land stock options series under trading symbol HLE are as follows:
|
Adjustment Term
|
Formula
|
Remarks
|
|
Adjustment Ratio (AR)
|
10 shares / (10 shares + 1 bonus share)= 0.9091
|
Rounded to the nearest
4 decimal places
|
|
Adjusted Exercise Price (AEP)
|
Exercise price of outstanding option series x AR
|
Rounded to the nearest
2 decimal places
|
|
Adjusted Contract Size (ACS)
|
Exercise price of outstanding option series x
(ACS*2/ 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 theex-date
|
|
Adjusted
|
HLB
|
ACS
|
From ex-date to29 June 2016
|
No
|
|
Adjusted
|
HLE
|
ACS*
|
Not available for trading from
ex-date onwards
|
No
|
Investors should note that the adjusted and standard stock options 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 arrangements, please refer to the SEHK & HKFE circulars.
| 1 |
HLE stock option contracts are adjusted contracts generated from a capital adjustment on 4 June 2015 due to a bonus issue. |
| 2 |
ACS*as per contract sizes stated in the comparative table of strike prices in thecircularissued on 3 June 2015. |
Ends