SEHK Options Clearing House Limited, a wholly-owned member of the Hong Kong Exchanges and Clearing Limited (HKEx) group, will adjust the contract terms of all open options contracts on shares of CLP Holdings Limited (CLP) as at the close of business today (Friday, 6 April) to take account of the bonus share entitlement of one bonus share for five existing shares of CLP as announced by CLP.

All CLP Options contracts as of the close of business today (Friday, 6 April) will be adjusted by the adjustment ratio of 0.8333 pursuant to Rule 213 of the Options Clearing Rules. The adjusted exercise price for each contract will be 0.8333 (the adjustment ratio) times the old exercise price. The adjusted contract size will be the old contract value (500 shares times the old exercise price) divided by the adjusted exercise price.

The adjustment process will be carried out after the close of business today (Friday, 6 April). Investors should consult their brokers for the adjustment result on or after 7 April.

After the adjustment, the adjusted series will be denoted as Version 1. As a result of the adjustment, there will be odd lots and share fractions. Upon exercise, the fractional shares in each contract will be settled in cash on the day of exercise. The integral portion, including odd lots, will be settled in the Central Clearing and Settlement System. Price information on the Version 1 series will be displayed in Teletext pages 3075-76.

The new series of standard contract size, denoted as Version 0, will be generated in accordance with the Operational Trading Procedures after the capital adjustment. The standard contract size will be 500 shares per contract. Price information on Version 0 series will be displayed in Teletext pages 3011-12.

Version 1 and Version 0 series will be available for trading in parallel until all Version 1 series expire on 28 December, after which only Version 0 will remain.

The two versions are distinct series and positions under each version cannot be offset against each other. Investors should consult their options brokers for further details, and pay attention to the series specifications whenever dealing with CLP Options contracts, particularly when placing orders or exercising instructions.

In addition, Hong Kong Futures Exchange Limited, a wholly-owned subsidiary of HKEx, has announced that as a result of the CLP bonus issue, immediately before the futures market opening on 9 April (Monday):

• the contract multiplier for all outstanding CLP Futures contracts will be increased proportionately by 20%, i.e. from 2,500 to 3,000;

• the contracted prices of all outstanding CLP Futures contracts will be reduced by 16.67%;

• the outstanding CLP Futures contracts will be traded under a new trading symbol CLA until expiration of the CLA contracts or until all open positions in those contracts are closed, whichever occurs first; and

CLP Futures contracts with original contract multiplier 2,500 will be listed for side by side trading, under the original trading symbol CLP.