Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to the contract terms of all open Hong Kong & China Gas futures and options contracts in existence after the market close on 6 June 2012, the business day immediately before the ex-bonus day, which is 7 June 2012, to account for Hong Kong & China Gas’s one bonus share for every 10 existing 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.

For details of the bonus issue of shares, please refer to the announcement made by Hong Kong & China Gas on 19 March 2012.

Hong Kong & China Gas Futures

Adjustment Procedures

Adjustments will be made to the open positions of Hong Kong & China Gas futures contracts which exist after the market close on 6 June 2012, the business day immediately before the ex-bonus day.  The details of the adjustment procedures are as follows:

Trading of Adjusted and Standard Contracts

After the market close on 6 June 2012, the business day immediately before the ex-bonus 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-bonus day, 7 June 2012.  Details of the adjusted and standard contracts available for trading on and after the ex-bonus 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.

Hong Kong & China Gas Options

Adjustment Procedures

Adjustments will be made to the open positions of Hong Kong & China Gas options contracts which exist after the market close on 6 June 2012, the business day immediately before the ex-bonus day.  The details of the adjustment procedures are as follows:

Trading of Adjusted and Standard Contracts

After the market close on 6 June 2012, the business day immediately before the ex-bonus 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-bonus day, 7 June 2012.  Details of the adjusted and standard contracts available for trading on and after the ex-bonus 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