Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to China Mobile Ltd (China Mobile) structured products, futures and options to account for China Mobile’s special dividend.
Overview
For details, please refer to the announcement made by China Mobile on 10 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.
Structured products with shares of China Mobile as underlying asset
The listing documents of all existing structured products with the shares of China 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 August 2017 regarding the relevant adjustments (including the adjusted entitlement, adjusted exercise price and adjusted call price, as appropriate) and investors should read the contents of such announcements.
China Mobile Futures
Trading Arrangements
The trading arrangements for the existing China Mobile stock futures under trading symbol CHT will be as follows:
- Adjustment and Transfer of Outstanding Positions
Open positions of China Mobile stock futures series under trading symbol CHT 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 CHB.
- Introduction of New Stock Futures Series for Trading
On the ex-date, new China Mobile stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol CHT.
Details of the adjustment procedures for China Mobile stock futures series under trading symbol CHT are as follows:
| Adjustment Term |
Formula |
Remarks |
| Adjustment Ratio (AR) |
(underlying stock closing price – interim dividend – special dividend) /
(underlying stock closing price – interim dividend) |
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 (500 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 |
CHB |
ACM |
From ex-date to
28 March 2018
|
No |
| Standard |
CHT |
500 |
From ex-date onwards |
Yes |
For detailed trading and clearing arrangements, please refer to the circular.
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.
China Mobile Options
Trading Arrangements
The trading arrangements for the existing China Mobile stock options under trading symbol CHT will be as follows:
- Adjustment and Transfer of Outstanding Positions
Open positions of China Mobile stock option series under trading symbol CHT 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 symbol CHB.
- Introduction of New Stock Option Series for Trading
On the ex-date, new China Mobile stock option series basd on the standard contract size will be introduced for trading under the standard trading symbol CHT.
Details of the adjustment procedures for China Mobile stock options series under trading symbol CHT are as follows:
| Adjustment Term |
Formula
|
Remarks
|
|
Adjustment Ratio (AR)
|
underlying stock closing price – interim dividend – special dividend) / (underlying stock closing price – interim dividend)
|
Rounded to the nearest 4 decimal places
|
|
Adjusted Exercise Price (AEP)
|
Exercise price of outstanding stock option series x AR
|
Rounded to the nearest 2 decimal places
|
|
Adjusted Contract Size (ACS)
|
Exercise price of outstanding stock option series x (500 shares / AEP)
|
Rounded to the nearest 4 decimal places
|
|
Contract
|
Trading Symbol
|
|
Availability For Trading
|
Addition of New Stock Option Series on and after the ex-date
|
|
Adjusted
|
CHB |
ACS |
From ex-date to
28 June 2018 |
No |
|
Standard
|
CHT |
500 |
From ex-date onwards |
Yes |
For detailed trading and clearing arrangements, please refer to the circular.
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.
Ends