Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to Semiconductor Manufacturing International Corporation (SMIC) futures to account for SMIC's share consolidation.

Overview 

Capital adjustment to the SMIC stock futures contracts will be made on the Effective Date based on the corporate action announced.  No adjustment to the SMIC stock futures contracts will be made due to change of board lot size.

For details, please refer to the announcement made by SMIC on 30 September 2016, 11 November 2016 and 17 November 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 SMIC as underlying asset

The listing documents of all existing structured products with the shares of SMIC as underlying asset contain provisions that deal with share consolidations. Structured product issuers will make announcements in the evening of 6 December 2016 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price) and investors should read the contents of such announcements carefully.

Subject to the share consolidation becoming effective, structured product issuers will make announcements regarding the change in board lot size in the evening of 20 December 2016.

SMIC Futures

Trading Arrangements

The trading arrangements for the existing SMIC stock futures under trading symbol SMC will be as follows:

Details of the adjustment procedures for SMIC stock futures series under trading symbol SMC are as follows:

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.

For detailed trading and clearing operational arrangement, please refer to the circular.

Ends