Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to SOHO China Ltd (SOHO China) futures to account for SOHO China’s special interim dividend.

Overview

For details, please refer to the announcement made by SOHO China on 15 November 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.

SOHO China Futures

Trading Arrangements

The trading arrangements for the existing SOHO China stock futures under trading symbols SOH, SOC and SOD will be as follows:

Details of the adjustment procedures for SOHO China stock futures series under trading symbol SOH are as follows:

Adjustment Term	Formula	Remarks
Adjustment Ratio (AR)	(underlying stock closing price – special interim dividend) / underlying stock closing price	Rounded to the nearest 4 decimal places
Adjustment Ratio (AR)	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 (10,000 shares / ACP)	Rounded to the nearest 4 decimal places

Contract	Trading Symbol	Contract Multiplier (Shares)	Availability For Trading	Stock Futures Series on and after the ex-date
Adjusted	SOG	ACM	From ex-date to 28 June 2018	No
Standard	SOH	10,000	From ex-date onwards	Yes

Details of the adjustment procedures for SOHO China stock futures series under trading symbol SOC are as follows:

Adjustment Term	Formula	Remarks
Adjustment Ratio (AR)	(underlying stock closing price – special interim dividend) / underlying stock closing price	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 (ACM*Note 1 / 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	SOE	ACM	From ex-date to 28 March 2018	No
Adjusted	SOC	ACM* Note 1	Not available for trading from ex-date onwards	No

^{Note 1}
ACM* are the Adjusted Contract Multiplier generated from capital adjustment made on 29 September 2017 due to the special dividend of $0.41000 per share. Current ACM for the SOC stock futures are：

Contract Months	Adjusted Contract Multiplier
November 2017	10,903.0837
December 2017	10,903.0837
March 2018	10,903.0837

For details, please refer to the circular.

Details of the adjustment procedures for SOHO China stock futures series under trading symbol SOD are as follows:

Adjustment Term	Formula	Remarks
Adjustment Ratio (AR)	(underlying stock closing price – special interim dividend) /underlying stock closing price	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 (ACM*Note 2 / 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	SOF	ACM	From ex-date to 28 December 2017	No
Adjusted	SOD	ACM* Note 2	Not available for trading from ex-date onwards	No

^{Note 2}
ACM* are the Adjusted Contract Multiplier generated from capital adjustment made on 29 September 2017 due to the special dividend of $0.41000 per share. Current ACM for the SOD stock futures are：

Contract Months	Adjusted Contract Multiplier
December 2017	11,942.7420

For details, 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.

For detailed trading and clearing arrangements, please refer to the circular.

 

Ends