Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to the contract terms of all open China Construction Bank (CCB) futures and options contracts in existence after the market close on 9 November 2010, the business day immediately before the ex-rights day, which is 10 November 2010, to account for CCB’s 0.7 H rights share for every 10 existing H 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.
CCB Futures
Adjustment Procedures
Adjustments will be made to the open positions of CCB futures contracts which exist after the market close on 9 November 2010, the business day immediately before the ex-rights day. The details of the adjustment procedures are as follows:
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Where $4.38 is the issue price for the new shares and $S is the underlying stock closing price on the business day (9 November 2010) prior to the ex-rights day. |
Trading of Adjusted and Standard Contracts
After the market close on 9 November 2010, the business day immediately before the ex-rights day, the open positions will be transferred to the adjusted futures contracts. In addition, new contracts based on the standard contract multiplier will be introduced for trading on the ex-rights day, 10 November 2010. Details of the adjusted and standard contracts available for trading on and after the ex-rights day are shown below:
Investors should note that the cash settlement amount of adjusted and standard 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.
CCB Options
Adjustment Procedures
Adjustments will be made to the open positions of CCB options contracts which exist after the market close on 9 November 2010, the business day immediately before the ex-rights day. The details of the adjustment procedures are as follows:
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Where $4.38 is the issue price for the new shares and $S is the underlying stock closing price on the business day (9 November 2010) prior to ex-rights day.
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Trading of Adjusted and Standard Contracts
After the market close on 9 November 2010, the business day immediately before the ex-rights 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-rights day, 10 November 2010. Details of the adjusted and standard contracts available for trading on and after the ex-rights 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