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
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 22 August 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.
SOHO China Futures
Trading Arrangements
The trading arrangements for the existing SOHO China stock futures under trading symbols SOH and SOB will be as follows:
- Adjustment and Transfer of Outstanding Positions
Open positions of SOHO China stock futures series under trading symbols SOH and SOB 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 symbols SOC and SOD respectively.
- 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.
Details of the adjustment procedures for SOHO China stock futures series under trading symbol SOH are as follows:
|
Adjustment Term
|
Formula
|
Remarks
|
|
Adjustment Ratio (AR)
|
(underlying stock closing price – special dividend) / underlying stock closing price
|
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 (10,000 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
|
SOC
|
ACM |
From ex-date to 28 March 2018 |
No |
|
Standard
|
SOH
|
10,000
|
From ex-date onwards |
Yes |
Details of the adjustment procedures for SOHO China stock futures series under trading symbol SOB are as follows:
|
Adjustment Term
|
Formula
|
Remarks
|
|
Adjustment Ratio (AR)
|
(underlying stock closing price – special dividend) / underlying stock closing price
|
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 (ACM*Note / 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
|
SOD
|
ACM |
From ex-date to 28 December 2017 |
No |
|
Standard
|
SOB
|
|
From ex-date onwards |
No |
Note: ACM* are the Adjusted Contract Multiplier generated from capital adjustment made on 31 May 2017 due to the special dividend of HK$0.39204 per share. Current ACM for the SOB stock futures are:
For details, please refer to the following circulars issued on 24 March 2017 and 29 May 2017.
Investors should note that the adjusted and standard stock futures series 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 arrangements, please refer to the circular.
Ends