Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to the contract terms of all open Sun Hung Kai Properties Ltd. (SHK) futures and option contracts in existence after the market close on 7 April 2014, the business day immediately before the ex-entitlement day, which is 8 April 2014, to account for SHK’s one bonus warrant for every 12 shares.

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.

For details of the proposed bonus warrants issue, please refer to the announcement made by SHK on 28 February 2014.

SHK Futures

Adjustment Procedures

Adjustments will be made to the open positions of SHK futures contracts which exist after the market close on 7 April 2014, the business day immediately before the ex-entitlement day.  The details of the adjustment procedures are as follows:

Notes:

1.S is the closing price of SHK on the day prior to the ex-entitlement day

2. W is the theoretical value of the bonus warrant per share

Trading of Adjusted and Standard Contracts

After the market close on 7 April 2014, the business day immediately before the ex-entitlement day, the open positions will be transferred to the adjusted stock futures contracts.  In addition, new stock futures contracts based on the standard contract size will be introduced for trading on the ex-entitlement day, 8 April 2014.  Details of the adjusted and standard contracts available for trading on and after the ex-entitlement day are shown below:

Investors should note that the cash settlement amount of adjusted and standard stock futures contracts on the last trading day will be calculated using their respective contract multipliers.  There will not be any changes to the number of open positions and other contract terms after the transfer of positions.

SHK Options

Adjustment Procedures

Adjustments will be made to the open positions of SHK option contracts which exist after the market close on 7 April 2014, the business day immediately before the ex-entitlement day.  The details of the adjustment procedures are as follows:

Notes:

1.S is the closing price of SHK on the day prior to the ex-entitlement day

2.W is the theoretical value of the bonus warrant per share 

Trading of Adjusted and Standard Contracts

After the market close on 7 April 2014, the business day immediately before the ex-entitlement day, the open positions will be transferred to the adjusted option series.  In addition, new option series based on the standard contract size will be introduced for trading on the ex-entitlement day, 8 April 2014.  Details of the adjusted and standard contracts available for trading on and after the ex-entitlement day are shown below:

Investors should note that the adjusted and standard option series 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