Adjustment of Power Assets Structured Products, Futures and Options
Market Operations
27 Jan 2017
Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to Power Assets Holdings Limited (Power Assets) structured products, futures and options to account for Power Assets’ special interim dividend.
Overview
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Company (Stock Code)
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Power Assets (6) |
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Corporate Action
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Special interim dividend of $5 per share |
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Ex-date
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14 February 2017 |
For details, please refer to the announcement made by Power Assets on 26 January 2017.
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 Power Assets as underlying asset
The listing documents of all existing structured products with the shares of Power Assets as underlying asset contain provisions that deal with a cash distribution including a special dividend. Structured product issuers will make announcements in the evening of 13 February 2017 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.
Power Assets Futures
Trading Arrangements
The trading arrangements for the existing Power Assets stock futures under trading symbol HEH will be as follows:
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1.
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Adjustment and Transfer of Outstanding Positions
Open positions of Power Assets stock futures series under trading symbol HEH 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 HEB.
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2.
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Introduction of New Stock Futures Series for Trading
On the ex-date, new Power Assets stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol HEH.
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Details of the adjustment procedures for Power Assets stock futures series under trading symbol HEH are as follows:
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Adjustment Ratio (AR)
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(underlying stock closing price – special interim 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 (500 shares / ACP)
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Rounded to the nearest 4 decimal places
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Adjusted
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HEB
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ACM
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From ex-date to 28 September 2017
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No
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Standard
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HEH
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500
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From ex-date onwards
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Yes
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Power Assets Options
Trading Arrangements
The trading arrangements for the existing Power Assets stock options under trading symbol HEH will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of Power Assets stock option series under trading symbol HEH which 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 symbol HEB.
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| 2. |
Introduction of New Stock Options Series for Trading
On the ex-date, new Power Assets stock options series based on the standard contract size will be introduced for trading under the standard trading symbol HEH.
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Details of the adjustment procedures for Power Assets stock options series under trading symbol HEH are as follows:
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Adjustment Ratio (AR)
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(underlying stock closing price – special interim dividend) / underlying stock closing price
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Rounded to the nearest 4 decimal places
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Adjusted Exercise Price (AEP)
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Exercise price of outstanding stock option series x AR
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Rounded to the nearest 2 decimal places
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Adjusted Contract Size (ACS)
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Exercise price of outstanding stock option series x (500 shares / AEP)
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Rounded to the nearest 4 decimal places
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Adjusted
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HEB
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ACS
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From ex-date to 28 December 2017
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No
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Standard
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HEH
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500
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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 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.
Ends