mobile search

Trading Mechanism


AMS/3 Trading System

The trading system of the Exchange is an order-driven system.

During the Pre-opening Session and the Closing Auction Session, the system accepts at-auction and at-auction limit orders only.

During the Continuous Trading Session, the system accepts limit, enhanced limit and special limit orders only, with an option for an "All-or-Nothing Qualifier" that confines the order to be either executed immediately in full or rejected, without being written into the central order book.

For details of the trading system and associated infrastructure, please visit the Infrastructure section.


Trading Sessions

Pre-opening Session

The maximum order size for automatch stocks is 3,000 board lots.  The maximum number of outstanding orders per broker ID has been removed while the number of orders in each price queue has been increased to 20,000 effective 29 January 2007.  Orders are accumulated over a certain period of time and matched at a pre-defined order matching period. Orders are matched in order type, price and time priority (at-auction orders carry a higher matching priority), at the final Indicative Equilibrium Price ("IEP").  The Pre-opening Session was introduced in March 2002. Please click here for FAQ in relation to Pre-opening Session.

Continuous Trading Session

The maximum order size for automatch stocks is 3,000 board lots.  The maximum number of outstanding orders per broker ID has been removed while the number of orders in each price queue has been increased to 20,000 effective 29 January 2007.  Orders are continuously executed in strict price and time priority.  An order entered into the system at an earlier time must be executed in full before an order at the same price entered at a later time is executed.

Closing Auction Session

The Closing Auction Session (CAS) is applicable to selected securities and consists of four periods: the Reference Price fixing period, order input period, no-cancellation period, and random closing period.

During the Reference Price fixing period, a Reference Price, which sets the allowable upper and lower price limits of the closing auction session (±5 per cent from the Reference Price), is calculated for each security that will have a Closing Auction Session.

During the order input period, at-auction orders and at-auction limit orders within the ±5 per cent price limit can be entered, amended or cancelled.

During the no-cancellation period, prices of new at-auction limit orders must be between the lowest ask and highest bid of the order book, and no orders can be amended or cancelled.

During the random closing period, the order rules from the no-cancellation period apply and the market closes randomly within two minutes.  After the random closing period, orders for all CAS securities are matched at the final IEP.  In cases where final IEP cannot be established during the CAS, the Reference Price will be treated as the final IEP for order matching and will become the closing price of the CAS security.  Order matching is based on order type, price and then time priority (at-auction orders carry a higher matching priority).

For further detail of CAS, please refer to the CAS information book and microsite.


Order types

AMS currently supports the following order types for automatching:

Pre-opening Session and Closing Auction Session

The AMS/3 only accepts at-auction and at-auction limit orders during the Pre-opening Session and Closing Auction Session.  

For Pre-opening Session, the order price input into the AMS/3 cannot deviate 9 times or more from the previous closing price or the nominal price (as the case may be), if available.

For Closing Auction Session, the order price input into the AMS/3 is subject to the two stages price limit.  Stage 1 price limit: is applicable to the Order Input Period and is set at ±5 per cent from the Reference Price.  Stage 2 price limit is applicable to the No Cancellation Period and Random Closing Period and is set at the highest bid and the lowest ask of the order book at the end of the Order Input Period.

  • At-auction Order

    An at-auction order is an order with no specified price and is entered into the AMS/3 for execution at the final Indicative Equilibrium Price (IEP). It enjoys a higher order matching priority than an at-auction limit order and will be matched in time priority at the final IEP.

    Any outstanding at-auction orders after the end of the Pre-opening Session will be cancelled before the commencement of the Continuous Trading Session.

  • At-auction Limit Order

    An at-auction limit order is an order with a specified price. An at-auction limit order with a specified price at or more competitive than the final IEP (in case of buying, the specified price is equal to or higher than the final IEP, or in case of selling, the specified price is equal to or lower than the final IEP) may be matched at the final IEP subject to availability of eligible matching order on the opposite side. An at-auction limit order will be matched in price and time priority at the final IEP. No at-auction limit order will be matched at a price worse than the final IEP. If an IEP cannot be determined during the Closing Auction Session, the Reference Price will serve as the price for matching. The matching of applicable at-auction orders and at-auction limit orders will occur at the Reference Price instead and the matching mechanism will be same as matching at the IEP.

    Any outstanding at-auction limit orders at the end of the Pre-opening Session will be carried forward to the Continuous Trading Session and treated as limit orders provided that the specified price of that at-auction limit order does not deviate 9 times or more from the nominal price. Such orders will be put in the price queue of the input price.

Continuous Trading Session

The AMS/3 only accepts limit, enhanced limit and special limit orders (with an option for an "All-or-Nothing Qualifier" that confines the order to be either executed immediately in full or rejected without being written into the central order book) during Continuous Trading Session as long as the order price input into the AMS/3 (i) does not deviate 9 times or more from the nominal price, if available, and (ii) follows the quotation rules unless the restriction is waived.At the end of the continuous trading session, all outstanding orders of securities applicable for trading in the closing auction session will be automatically carried forward to the closing auction session provided that the price of buy limit orders is not higher than the allowable upper price limit or the price of sell limit orders is not lower than the allowable lower price limit prescribed for closing auction session.  All outstanding orders carried forward from the continuous trading session to the closing auction session will be treated as at-auction limit orders.  

  • Limit Order

    A limit order will allow matching only at the specified price. The sell order input price cannot be made at a price below the best bid price, if available whereas the buy order input price cannot be made at a price above the best ask price, if available.

    Any outstanding limit order will be put in the price queue of the input price.

  • Enhanced Limit Order

    An enhanced limit order will allow matching of up to 10 price queues (i.e. the best price queue and up to the 10th queue at 9 spreads away) at a time provided that the traded price is not worse than the input price. The sell order input price cannot be made at a price of 10 spreads (or more) below the current bid price whereas the buy order input price cannot be made at a price of 10 spreads (or more) above the current ask price.

    Any outstanding enhanced limit order will be treated as a limit order and put in the price queue of the input price.

 

Example 1 : Enhanced Limit Order (ELO) - fully matched

Table 1 (a) : Original Position

Price Volume (‘000) Price Volume (‘000)
Bid Ask
$30.00 100 $30.05 80
$29.95 90 $30.10 70
$29.90 80 $30.15 160
$29.85 60 $30.20 50
$29.80 180 $30.25 60
$29.75 34 $30.30 50
$29.70 100 $30.35 40
$29.65 150 $30.40 45
$29.60 18 $30.45 25
$29.55 36 $30.50 70
$29.50 200 $30.55 80
$29.45 150 $30.60 55
$29.40 50 $30.65 50
$29.35 20 $30.70 25

Enhanced Limit Order: to buy 650,000@ $30.50

Table 1 (b) : After Execution

Price Volume (‘000) Price Volume (‘000)
Bid Ask
$30.00 100 $30.55 80
$29.95 90 $30.60 55
$29.90 80 $30.65 50
$29.85 60 $30.70 25
$29.80 180 $30.75 20
$29.75 34 $30.80 70
$29.70 100 $30.85 20
$29.65 150 $30.90 10
$29.60 18 $30.95 70
$29.55 36 $31.00 15
$29.50 200 $31.05 25
$29.45 150 $31.10 60
$29.40 50 $31.15 30
$29.35 20 $31.20 35

Trade executed 80,000@ 30.05
70,000@ 30.10
160,000@ 30.15
50,000@ 30.20
60,000@ 30.25
50,000@ 30.30
40,000@ 30.35
45,000@ 30.40
25,000@ 30.45
70,000@ 30.50
Unfilled None

 

Example 2 : Enhanced Limit Order (ELO) - with unfilled quantity

Table 2 (a) : Original Position

Price Volume (‘000) Price Volume (‘000)
Bid Ask
$30.00 100 $30.05 80
$29.95 90 $30.10 70
$29.90 80 $30.15 160
$29.85 60 $30.20 50
$29.80 180 $30.25 60
$29.75 34 $30.30 50
$29.70 100 $30.35 40
$29.65 150 $30.40 45
$29.60 18 $30.45 25
$29.55 36 $30.50 70
$29.50 200 $30.55 80
$29.45 150 $30.60 55
$29.40 50 $30.65 50
$29.35 20 $30.70 25

Enhanced Limit Order: to buy 680,000 @ $30.50

Table 2 (b) : After Execution

Price Volume (‘000) Price Volume (‘000)
Bid Ask
$30.50 30 $30.55 80
$30.45 200 $30.60 55
$30.40 50 $30.65 50
$30.35 40 $30.70 25
$30.30 60 $30.75 20
$30.25 20 $30.80 70
$30.20 15 $30.85 20
$30.15 10 $30.90 10
$30.10 30 $30.95 70
$30.05 25 $31.00 15
$30.00 28 $31.05 25
$29.95 20 $31.10 60
$29.90 10 $31.15 30
$29.85 70 $31.20 35

Trade executed 80,000@ 30.05
70,000@ 30.10
160,000@ 30.15
50,000@ 30.20
60,000@ 30.25
50,000@ 30.30
40,000@ 30.35
45,000@ 30.40
25,000@ 30.45
70,000@ 30.50
Unfilled 30,000 @ $30.50 as limit order
  • Special Limit Order

    A special limit order will allow matching of up to 10 price queues (i.e. the best price queue and up to the 10th queue at 9 spreads away) at a time provided that the traded price is not worse than the input price. A special limit order has no restriction on the input price as long as the order input price is at or below the best bid price for a sell order or at or above the best ask price for a buy order.

    Any outstanding special limit order will be cancelled and will not be stored in the AMS/3.

 

Example 3 : Special Limit Order (SLO)

Table 3 (a) : Original Position

Price Volume (‘000) Price Volume (‘000)
Bid Ask
$30.00 100 $30.05 80
$29.95 90 $30.10 70
$29.90 80 $30.15 160
$29.85 60 $30.20 50
$29.80 180 $30.25 60
$29.75 34 $30.30 50
$29.70 100 $30.35 40
$29.65 150 $30.40 45
$29.60 18 $30.45 25
$29.55 36 $30.50 70
$29.50 200 $30.55 80
$29.45 150 $30.60 55
$29.40 50 $30.65 50
$29.35 20 $30.70 25

Special Limit Order: to buy 660,000 @ $30.55
Table 3 (b) : After Execution

Price Volume (‘000) Price Volume (‘000)
Bid Ask
$30.00 100 $30.55 80
$29.95 90 $30.60 55
$29.90 80 $30.65 50
$29.85 60 $30.70 25
$29.80 180 $30.75 20
$29.75 34 $30.80 70
$29.70 100 $30.85 20
$29.65 150 $30.90 10
$29.60 18 $30.95 70
$29.55 36 $31.00 15
$29.50 200 $31.05 25
$29.45 150 $31.10 60
$29.40 50 $31.15 30
$29.35 20 $31.20 35

Trade executed 80,000@ 30.05
70,000@ 30.10
160,000@ 30.15
50,000@ 30.20
60,000@ 30.25
50,000@ 30.30
40,000@ 30.35
45,000@ 30.40
25,000@ 30.45
70,000@ 30.50
Unfilled quantity 10,000 cancelled, not stored in the System.

Comparison of Limit Order, Enhanced Limit Order and Special Limit Order

The following example illustrates the effect on the central order book if a sell order of 600K shares of XYZ stock is input at different selling prices and with different order types:

Original Order Book of XYZ Stock
(Nominal Price: $1.00)
Price Volume (‘000) Price Volume (‘000)
Bid Ask
$1.00 100 $1.01 80
$0.99 90 $1.02 70
$0.98 60 $1.03 90
$0.97 ~ $1.04 50
$0.96 80 $1.05 30
$0.95 20 $1.06 20
$0.94 30 $1.07 30
$0.93 50 $1.08 50
$0.92 ~ $1.09 60
$0.91 70 $1.10 30

If the selling price is input at Case 1
Limit Order
Case 2
Enhanced Limit Order
Case 3
Special Limit Order
1 $1.01 Order unfilled and put in the ask queue at $1.01 Order unfilled and put in the ask queue at $1.01 Order rejected by the AMS/3
(special limit sell order cannot be made at a price above the current bid at $1.00)
2 $1.00

Order partially filled 

Filled: 100,000@$1.00

Outstanding: 500,000 put in the ask queue at $1.00

Order partially filled

Filled: 100,000@$1.00

Outstanding: 500,000 put in the ask queue at $1.00

Order partially filled

Filled: 100,000@$1.00

Outstanding:500,000 @$1.00 cancelled by the AMS/3

3 $0.91 Order rejected by the AMS/3
(limit sell order cannot be made at a price below the current bid at $1.00)

Order partially filled

Filled: 100,000@$1.00
            90,000@$0.99
            60,000@$0.98
            80,000@$0.96
            20,000@$0.95
            30,000@$0.94
            50,000@$0.93
            70,000@$0.91

Outstanding: 100,000 put in the ask queue at $0.91

Order partially filled

Filled: 100,000@$1.00
            90,000@$0.99
            60,000@$0.98
            80,000@$0.96
            20,000@$0.95
            30,000@$0.94
            50,000@$0.93
            70,000@$0.91

Outstanding: 100,000@$0.91 cancelled by the AMS/3

4 Any price below $0.91 but above $0.111 (i.e. a price which does not deviate 9 times or more from the nominal price*) Order rejected by the AMS/3
(enhanced limit sell order cannot be made at a price of 10 spreads (or more) below the current bid price at $1.00)

Order partially filled

Filled: 100,000@$1.00
            90,000@$0.99
            60,000@$0.98
            80,000@$0.96
            20,000@$0.95
            30,000@$0.94
            50,000@$0.93
            70,000@$0.91

Outstanding: 10,000 cancelled by the AMS/3

5 At or below $0.111 (i.e. a price which deviates 9 times or more from the nominal price*) Order rejected by the AMS/3
(limit sell order cannot be made at a price below the current bid at $1.00 or deviates 9 times or more from the nominal price*)
Order rejected by the AMS/3
(enhanced limit sell order cannot be made at a price of 10 spreads (or more) below the current bid price at $1.00 or deviates 9 times or more from the nominal price*)
Order rejected by the AMS/3
(special limit sell order cannot be made at a price which deviates 9 times or more from the nominal price*)

* The 9-times restriction, as stipulated in Rule 505A of the Rules of the Exchange


Trade types

AMS currently supports the following trade types:

  • Automatch Trade

    An automatch trade is a trade concluded through the AMS by automatic matching of buy and sell orders submitted by Exchange Participant(s).

  • Direct Business Transaction

    A direct business transaction refers to the business transacted by an Exchange Participant who acts for both the buyer and the seller, whether as principal or agent.

  • Non-Direct Business Transaction

    A non-direct business transaction refers to the business transacted by two Exchange Participants, one as buyer and the other as seller.

  • Manual Trade

    A manual trade is a trade concluded by Exchange Participant(s) not through the AMS for which the selling party is responsible to report the trade details to the Exchange through the AMS. The buying party should review details of the trades and reject any erroneous input.

  • Odd Lot Trade

    An odd lot trade is a trade with the quantity of shares less than one board lot.

  • Auction Matching Trade

    An auction matching trade refers to the automatic order matching of the auction orders during the order matching period in the Pre-opening Session and the Closing Auction Session. During order matching period, automatic order matching of the auction orders shall be conducted in accordance with Rule 517(1)(a) and no order shall be input into the AMS, amended or cancelled. All transactions concluded based on the methodology specified in Rule 517(1)(a) during the order matching period shall be deemed to have been concluded at the commencement of the order matching period.

  • Pre-opening Trade

    A pre-opening trade is a trade concluded before the commencement of the Pre-opening Session, including that concluded on the previous day but not recorded in the AMS.

 

Order and trade information is disseminated to the market and investors through the market data feed, the Exchange's website and other information systems. There is also a news system to display compliance and Exchange news and news on listed companies in both English and Chinese to enhance information dissemination to Exchange Participants and the public.


Quotation rules

The first bid or ask order entered into the trading system on each trading day is governed by the opening quotation rule. The first order if it is a bid must be higher than or equal to the previous closing price minus twenty-four spreads. The first order if it is an ask must be lower than or equal to the previous closing price plus twenty-four spreads.  The first order, whether it is a bid or ask, shall not in any case deviate 9 times or more from the previous closing price. Quotations for buy and sell orders other than the opening quotations are governed by another set of quotation rules and a scale of spreads. In particular, a buy order or a sell order shall not be made at a price that deviates 9 times or more from the nominal price. However, quotation rules in general do not apply to at-auction limit orders, except that a buy at-auction limit order or a sell at-auction limit order shall not be made at a price that deviates 9 times or more from the nominal price.

The spread table is available under the Second Schedule of the Rules of the Exchange.


Volatility Control Mechanism

A Volatility Control Mechanism (VCM) in the securities market is only applied on all Hang Seng Index and Hang Seng China Enterprise Index constituent stocks to prevent extreme price volatility from trading incidents such as a “flash crash” and algorithm errors, and to address systemic risks from the inter-connectedness of securities and derivatives markets. 

The VCM is triggered if the potential transaction price of an applicable security deviates more than ±10% away from the last traded price five minutes ago, and a five minutes cooling-off period will start.  During the cooling-off period, trading is allowed within a pre-defined price band.  Normal trading without restriction will resume after cooling-off period.

The VCM is only applicable to board lot order input during certain periods of the Continuous Trading Session.

For further detail of VCM, please refer to the VCM information book and microsite.

Trade Prices

Trade Prices Description
Previous Closing Price refers to the last recorded closing price of an issue of securities.
Indicative Equilibrium Price (IEP)

Pre-opening Session
refers to a price, if any, determined by the AMS according to Rule 501H
at any specific moment during the Pre-opening Session.
Closing Auction Session
refers to a price, if any, determined by the AMS according to Rule 501M
at any specific moment during the Closing Auction Session.

Closing Auction Session (CAS) Reference Price the price which is the median of 5 nominal prices in the last minute of the last Continuous Trading Session on that trading day. Please also refer to the following section for the description of closing price.
Bid Price refers to the price of a buy order.
Ask Price refers to the price of a sell order.
Current Bid Price is also known as best bid price and refers to the following:
During the Pre-opening Session or the Closing Auction Session,
a. (when the IEP can be determined in accordance with Rule 501Hor Rule 501M) the IEP at any specific moment; otherwise
b. the highest bid price at any specific moment.
During the Continuous Trading Session, the highest bid price at any specific moment.
Current Ask Price is also known as best ask price and refers to the following:
During the Pre-opening Session or the Closing Auction Session,
a. (when the IEP can be determined in accordance with Rule 501Hor Rule 501M) the IEP at any specific moment; otherwise
b. the lowest ask price at any specific moment.
During the Continuous Trading Session, the lowest ask price at any specific moment.
Nominal Price


refers to the following:
a. in respect of an issue of securities at any one time during or at the close of the Pre-opening Sessionmeans:
i. (when the IEP can be determined in accordance with Rule 501H) the IEP; otherwise
ii. the previous closing price;
b. in respect of an issue of securities at any one time during or at the close of the Continuous Trading Sessionon a trading day means:
i. if the issue has been traded up to that time on the day:
A. (when the current bid price is greater than the last recorded price), the current bid price; otherwise
B. (when the current ask price is less than the last recorded price), the current ask price; otherwise
C. where both (b)(i)(A) and (b)(i)(B) above do not apply, then the last recorded price; or
ii. if the issue has not been traded up to that time on the day:
A. (when the current bid price is greater than the previous closing price), the current bid price; otherwise
B. (when the current ask price is less than the previous closing price), the current ask price; otherwise
C. where both (b)(ii)(A) and (b)(ii)(B) above do not apply, then the previous closing price.
c.

in respect of an issue of securities at any one time during or at the close of the Closing Auction Session means: -
i. (when it is an issue of CAS securities and the IEP can be determined in accordance with Rule 501M) the IEP; otherwise
ii. the CAS Reference Price;
Closing Price Please refer to the following section for the description of closing price.
Last Recorded Price refers to the sale price as last recorded in the AMS.
Day High Price refers to the highestprice of a non-direct trade concluded by automatic order matching (includingauction matching) during the day.
Day Low Price refers to the lowestprice of a non-direct trade concluded by automatic order matching (including auction matching) during the day.


Closing Price Calculation

For non-Closing Auction Session (CAS) securities

Under normal operation environment, the closing price of a stock is determined by taking the median of 5 nominal prices in the last minute of the continuous trading session. The system will take up 5 snapshots on the nominal prices at 15-second interval starting from 3:59:00 p.m. The following example will illustrate the calculation:

Snapshot Time Bid Price Ask Price Last Recorded Price Nominal Price#
1st 3:59:00 p.m. $39.40 $39.45 $39.45 $39.45
2nd 3:59:15 p.m. $39.40 $39.45 $39.45 $39.45
3rd 3:59:30 p.m. $39.40 $39.45 $39.40 $39.40
4th 3:59:45 p.m. $39.35 $39.45 $39.40 $39.40
5th 4:00:00 p.m. $39.30 $39.35 $39.35 $39.35

The five snapshot nominal prices are arranged in ascending order as follows:

$39.35 $39.40 $39.40 $39.45 $39.45

The median (i.e. the middle one) is $39.40, which will then be taken as the closing price. Choosing the median of five snapshot nominal prices ensures that the closing price will not be biased by one single trade.

# The nominal price is determined by comparing the current bid price, the current ask price and the last recorded price in accordance with Rule 101 of the Rules of the Exchange.

For CAS securities

The Reference Price is first determined using the existing closing price calculation method mentioned above.

The Indicative Equilibrium Price (IEP) at the end of the CAS would be the final IEP, and the final IEP will serve as the closing price of a CAS security.  If an IEP cannot be determined at the end of the CAS, the Reference Price will become the final IEP and therefore the closing price.  

Guidelines on Adjustments to the Previous Closing Price of a Security

In the event that an equity issuer announces a share sub-division or a share consolidation or makes changes to its capital structure by way of rights issues, bonus issues, cash dividend payments, etc., the Exchange may adjust the Previous Closing Price of the relevant listed equity security on the ex-entitlement day or the corporate action effective day and display it on AMS/3 for market reference.

It is common that an entitlement may subject to the fulfillment of certain condition(s), for example shareholders’ approval at a general meeting. If the condition(s) has not been satisfied or waived (if applicable), the entitlement will not be proceeded. Shareholders and potential investors should exercise caution when dealing in the shares especially on and after the ex-entitlement day until the entitlement becomes unconditional and consult their professional advisers if they are in any doubts.

Under circumstances where the previous closing price becomes irrelevant or the determination of an adjusted one is not practicable, the Previous Closing Price may either be presented as “N/A” (i.e. Not Applicable) or remained unchanged, as the case may be.

The formulas and exceptions that may be used for standard capital adjustment events are set out in the following table, as updated by the Exchange from time to time.

Entitlement Events Adjusted Share Price =

1. Cash Dividend / Distribution

  • Dividend or distribution in cash of $D per share

Price Adjustment may not be made and the previous closing price will be presented as “N/A” on ex-date when:

(a) The dividend amount has not yet been determined on or before the last cum date; or
(b) The dividend amount is higher than the closing price on the last cum date.

Cash Dividend Distribution

2. Bonus Issues

  • X bonus share(s) for holding of every Y existing share(s)
  • X bonus warrant(s) for holding of every Y existing warrant(s)

Cash dividend, if there is any, may be deducted from the closing price on the last cum date before adjusting for the bonus issue.

Price Adjustment may not be made and the previous closing price will be presented as “N/A” on ex-date when other types of securities (e.g. warrants/debt securities) are issued for the existing shares under the bonus issue.

Bonus Issues equation

3. Distribution in specie

  • Dividend / Distribution in specie of X share(s) in Company E for holding of every Y existing share(s) of Company F

Price Adjustment may not be made and the previous closing price will be presented as “N/A” on ex-date when:

(a) The shares in Company E is not currently listed on the Exchange; or
(b) The distribution ratio has not yet been determined on or before the last cum date; or
(c) The amount of the dividend/distribution in specie of Company E is higher than the price of Company F when performing the Price Adjustment.

Distribution in specie equation

where:
PF is the closing price of Company F on the last cum date; and
PE is the closing price of Company E on the last cum date.

4. Rights issue/Open offer

4.1 Rights issue/Open offer of shares

  • X rights/offer share(s) for holding of every Y existing share(s) at subscription price of $Z per rights/offer share

Price Adjustment may not be made and the previous closing price will be presented as “N/A” on ex-date when the rights issue/open offer is for subscribing for other types of securities (e.g. warrants/ debt securities).

Rights issue Open offer equation 1

4.2 Rights issue/open offer with bonus share(s) for rights/offer share(s) taken up

  • X rights/offer share(s) for holding of every Y existing share(s) at subscription price of $Z per rights/offer share, with A bonus share(s) for B rights/offer share(s) subscribed for
Rights issue Open offer equation 2
4.3 Rights issue/open offer and bonus issue of shares at the same time
  • Not entitled to each other
    X rights/offer share(s) for holding of every Y existing share(s) at subscription price of $Z per rights/offer share. A bonus share(s) for holding of every B existing share(s)
  • Rights issue/open offer entitled to bonus issue
    A bonus share(s) for holding of every B existing share(s). X rights/offer share(s) for holding of every Y existing share(s) and bonus share(s) at subscription price of $Z per rights share

  • Bonus issue entitled to rights issue/open offer X rights/offer share(s) for holding of every Y share(s) at subscription price $Z per rights/offer share. A bonus share(s) for holding of every B existing and rights/offer share(s)

    Cash dividends, if there is any, may be deducted from the closing price on the last cum date before adjusting for the rights issue/open offer.

    Price Adjustment for rights issue/open offer may not be made and the previous closing price will remain unchanged on ex-date when the subscription price (after adjustment for bonus issue2, if applicable) is higher than the closing price of the shares on the last cum date.

Rights issue Open offer equation 3

 

Rights issue Open offer equation 4

 

Rights issue Open offer equation 5

 

 

 

 

5. Preferential offer

  • Preferential offer of X share(s) in another unlisted company for holding of every Y share(s) at $Z per share

Price Adjustment may not be made and the previous closing price will be presented as “N/A” on ex-date.

N/A

 

Corporate Action Events Adjusted Share Price =

1. Consolidation of shares/warrants

X existing shares / warrants to be consolidated into Y consolidated share(s) / warrant(s)

Corporate Action Events equation 1

2. Sub-division of shares/warrants

X existing shares / warrants to be sub-divided into Y sub-divided share(s) / warrant(s)

Corporate Action Events equation 2

3. Change of domicile - Exchange for a new holding company shares/warrants

X new holding company share(s) / warrant(s) for every Y existing share(s) / warrant(s)

Corporate Action Events equation 3

4. Capital reduction by way of cancellation of shares

X existing share(s) to be cancelled for every Y existing share(s).

Corporate Action Events equation 4

 

While every effort is made to ensure the accuracy and completeness of information contained in this guidelines, Hong Kong Exchanges and Clearing Limited and its subsidiaries assume no liability in respect of statements of any nature contained in this document. Errors or omissions, if any, should not be made the basis for any claim, demand, or cause of action.

1 Subject to any adjustment which may be made when the new shares proposed to be issued under a previous bonus issue of shares are not entitled to the current entitlement(s).

2 In the event that there is a bonus issue of shares for rights/offer shares taken up, the subscription price used in the calculation of price adjustment will be averaged by the number of rights/offer shares and bonus shares for taking into account the bonus shares to be issued.

Public Trade Types

The following public trade types are displayed on the stock pages of Trading Devices for reference:

Public Trade Types Description
D Odd lot transaction
M Manual or Special lot non-Direct Business transaction
P Pre-open transaction (trade concluded before market open including that concluded but not recorded in the system before market close of the previous trading day)
U Auction transaction
X Manual or Special lot Direct Business transaction
Y Automatch Direct Business transaction
" " Automatch non-Direct Business transaction
* Rejected/Cancelled transaction
Loading