Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to The Hong Kong and China Gas Company Ltd (Hong Kong and China Gas) structured products, futures and options to account for Hong Kong and China Gas' bonus issue.
Overview
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Company (Stock Code)
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Hong Kong and China Gas (3)
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Corporate Action
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1 bonus share for every 10 existing shares
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Ex-date
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10 June 2016
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For details, please refer to the announcement made by Hong Kong and China Gas on 18 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 Hong Kong and China Gas as underlying asset
The listing documents of all existing structured products with the shares of Hong Kong and China Gas as underlying asset contain provisions that deal with a bonus issue. Structured product issuers will make announcements in the evening of 8 June 2016 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price) and investors should read the contents of such announcements carefully.
Hong Kong and China Gas Futures
Trading Arrangements
The trading arrangements for the existing Hong Kong and China Gas stock futures under trading symbol HKG will be as follows:
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1.
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Adjustment and Transfer of Outstanding Positions
Open positions of Hong Kong and China Gas stock futures series under trading symbol HKG 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 HKA.
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2.
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Introduction of New Stock Futures Series for Trading
On the ex-date, new Hong Kong and China Gas stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol HKG.
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Details of the adjustment procedures for Hong Kong and China Gas stock futures series under trading symbol HKG are as follows:
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Adjustment Ratio (AR)
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10 shares / (10 shares + 1 bonus share) = 0.9091
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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
(1,000 shares / ACP)
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Rounded to the nearest
4 decimal places
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Adjusted
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HKA
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ACM
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From ex-date to 29 December 2016
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No
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Standard
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HKG
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1,000
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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 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.
Hong Kong and China Gas Options
Trading Arrangements
The trading arrangements for the existing Hong Kong and China Gas stock options under trading symbols HKG and HKH1 will be as follows:
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1.
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Adjustment and Transfer of Outstanding Positions
Open positions of Hong Kong and China Gas stock option series under trading symbols HKG and HKH 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 symbols HKA and HKE respectively.
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2.
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Introduction of New Stock Option Series for Trading
On the ex-date, new Hong Kong and China Gas stock option series based on the standard contract size will be introduced for trading under the standard trading symbol HKG.
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Details of the adjustment procedures for Hong Kong and China Gas stock options series under trading symbol HKG are as follows:
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Adjustment Ratio (AR)
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10 shares / (10 shares + 1 bonus share) = 0.9091
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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 (1,000 shares / AEP)
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Rounded to the nearest
4 decimal places
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Adjusted
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HKA
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ACS
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From ex-date to 29 June 2017
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No
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Standard
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HKG
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1,000
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From ex-date onwards
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Yes
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Details of the adjustment procedures for Hong Kong and China Gas stock options series under trading symbol HKH are as follows:
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Adjustment Ratio (AR)
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10 shares / (10 shares + 1 bonus share) = 0.9091
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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 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 option series x (ACS* 2 / AEP)
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Rounded to the nearest
4 decimal places
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Adjusted
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HKE
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ACS
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From ex-date to 29 June 2016
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No
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Adjusted
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HKH
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ACS*
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Not available for trading from
ex-date onwards
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No
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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.
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1
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HKH stock option contracts are the adjusted contracts generated from capital adjustment made on 3 June 2015 due to bonus issue of 1 bonus share for every 10 existing shares. |
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2
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ACS* as per the contract sizes stated in the comparative table of strike prices in the circular issued on 2 June 2015.
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Ends