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Adjustment of FIH Mobile Structured Products, Futures and Options

Market Operations
17 Mar 2016

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to FIH Mobile Ltd (FIH Mobile) structured products, futures and options to account for FIH Mobile's distribution of a special dividend.

Overview

Company (Stock Code)

FIH Mobile Ltd (2038)

Corporate Action

Special Dividend of US$0.019 per share

Ex-date

31 May 2016

The special dividend amount per share in Hong Kong dollars (to be rounded up to two decimal places, if necessary) will be calculated at the rate of exchange quoted by FIH Mobile's relevant banker at its middle rate of exchange prevailing on the date of the Annual General Meeting which will be held on 25 May 2016. More details of the capital adjustment will be announced in due course.

For details, please refer to the announcement made by FIH Mobile on 15 March 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 FIH Mobile as underlying asset

The listing documents of all existing structured products with the shares of FIH Mobile 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 30 May 2016 regarding the adjustments (including the adjusted entitlement and adjusted exercise price) and investors should read the contents of such announcements carefully.

FIH Mobile Futures

Trading Arrangements

The trading arrangements for the existing FIH Mobile stock futures under trading symbol FIH will be as follows:

1. Adjustment and Transfer of Outstanding Positions
Open positions of FIH Mobile stock futures under trading symbol FIH which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock futures under trading symbol FIB.

2. Introduction of New Stock Futures for Trading
On the ex-date, new FIH Mobile stock futures based on the standard contract multiplier will be introduced for trading under the standard trading symbol FIH.

Details of the adjustment procedures for FIH Mobile stock futures under trading symbol FIH are as follows:

Adjustment Term

Formula

Remarks

Adjustment Ratio (AR)

(underlying stock closing price – ordinary dividend - special dividend) /
(underlying stock closing price – ordinary dividend)

Rounded to the nearest
4 decimal places

Adjusted Contracted Price (ACP)

Contracted price of outstanding stock futures x AR

Rounded to the nearest 2 decimal places

Adjusted Contract Multiplier (ACM)

Contracted price of outstanding stock futures x (1,000 shares / ACP)

Rounded to the nearest 4 decimal places


Contract

Trading Symbol

Contract Multiplier(Shares)

Availability For Trading

Addition of New Stock Futures on and after the ex-date

Adjusted

FIB

ACM

From ex-date to 29 December 2016

No

Standard

FIH

1,000

From ex-date onwards

Yes

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.

FIH Mobile Options

Trading Arrangements

The trading arrangements for the existing FIH Mobile stock options under trading symbols FIH and FIA will be as follows:

1. Adjustment and Transfer of Outstanding Positions
Open positions of FIH Mobile stock options under trading symbols FIH and FIA which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock options under trading symbols FIB and FIC respectively.

2. Introduction of New Stock Options for Trading
On the ex-date, new FIH Mobile stock options based on the standard contract size will be introduced for trading under the standard trading symbol FIH.

Details of the adjustment procedures for FIH Mobile stock options under trading symbol FIH are as follows:

Adjustment Term

Formula

Remarks

Adjustment Ratio (AR)

(underlying stock closing price – ordinary dividend – special dividend) /
(underlying stock closing price – ordinary dividend)

Rounded to the nearest 4 decimal places

Adjusted Exercise Price (AEP)

Exercise price of outstanding stock options x AR

Rounded to the nearest 2 decimal places

Adjusted Contract Size (ACS)

Exercise price of outstanding stock options x (1,000 shares / AEP)

Rounded to the nearest 4 decimal places


Contract

Trading Symbol

Contract Size(Shares)

Availability For Trading

Addition of New Stock Option on and after the ex-date

Adjusted

FIB

ACS

From ex-date to 30 March 2017

No

Standard

FIH

1,000

From ex-date onwards

Yes

Details of the adjustment procedures for FIH Mobile stock options under trading symbol FIA are as follows:

Adjustment Term

Formula

Remarks

Adjustment Ratio (AR)

(underlying stock closing price – ordinary dividend – special dividend) /
(underlying stock closing price – ordinary dividend)

Rounded to the nearest 4 decimal places

Adjusted Exercise Price (AEP)

Exercise price of outstanding stock options x AR

Rounded to the nearest 2 decimal places

Adjusted Contract Size (ACS)

Exercise price of outstanding stock options x (ACS*Note / AEP)

Rounded to the nearest 4 decimal places


Contract

Trading Symbol

Contract Size(Shares)

Availability For Trading

Addition of New Stock Options on and after the ex-date

Adjusted

FIC

ACS

From ex-date to 29 June 2016

No

Adjusted

FIA

ACS*

Not available for trading from
ex-date onwards

No

Note ACS* as per the contract sizes stated in the comparative table of strike prices in the circular issued on 1 June 2015.

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

Updated 17 Mar 2016