Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to Sunac China Holdings Limited (Sunac) structured products, futures and options to account for Sunac’s spinning off and separate listing of Sunac Services by way of a distribution in specie. 

Corporate action overview

Please refer to the announcement made by Sunac on 26 October 2020 for details.

Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.

Structured products with shares of Sunac as underlying asset

The listing documents for structured products with the shares of Sunac China as underlying assets contain provisions that deal with corporate actions of the company, including spin-offs.  For the spin-off of Sunac Services, terms of Sunac China structured products, including entitlement, exercise price and call price, as appropriate, will be adjusted on the day following the listing of Sunac Services.

Trading of structured products with shares of Sunac China as underlying assets will be suspended from 3 November to the listing date of Sunac Services (both date inclusive).  During the suspension period, there will not be any Mandatory Call Events for Callable Bull/Bear Contracts, or CBBCs, linked to Sunac China.

Structured product issuers are required to make announcements regarding the above adjustments and trading suspensions, and investors should read the contents of such announcements carefully.

Adjustment of Sunac Futures and Options

For detailed trading and clearing arrangement of Sunac Futures and Options after the adjustments, please refer to the circulars posted on HKEX website.

Investors should note that the adjusted and standard stock futures and options will 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