Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to China Shenhua Energy Company Ltd (China Shenhua) structured products, futures and options to account for China Shenhua’s special dividend.
Overview
China Shenhua will hold the 2016 annual general meeting on 23 June 2017 to consider and approve the special dividend plan. The special dividend paid in HKD is calculated according to the exchange rate based on the average benchmark rate of RMB against HKD, as published by the Bank of China five business days preceding the date of declaration of dividend.
For details, please refer to the announcement made by China Shenhua on 17 March 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 China Shenhua as underlying asset
The listing documents of all existing structured products with the shares of China Shenhua 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 28 June 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.
China Shenhua Futures
Trading Arrangements
The trading arrangements for the existing China Shenhua stock futures under trading symbol CSE will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of China Shenhua stock futures series under trading symbol CSE 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 CSB.
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2.
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Introduction of New Stock Futures Series for Trading
On the ex-date, new China Shenhua stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol CSE.
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Details of the adjustment procedures for China Shenhua stock futures series under trading symbol CSE are as follows:
For detailed trading and clearing arrangements, please refer to the circular.
China Shenhua Options
Trading Arrangements
The trading arrangements for the existing China Shenhua stock options under trading symbol CSE will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of China Shenhua stock option series under trading symbol CSE 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 CSB.
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2.
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Introduction of New Stock Option Series for Trading
On the ex-date, new China Shenhua stock option series based on the standard contract size will be introduced for trading under the standard trading symbol CSE.
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For detailed trading and clearing arrangements, please refer to the circular.
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.
Ends