Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to the contract terms of all open Hong Kong & China Gas (HKG) futures and option contracts in existence after the market close on 7 May 2007, the business day immediately before the ex-bonus date (ex-date), which is 8 May 2007, to account for bonus shares to be issued on the basis of one bonus share for every 10 existing ordinary shares.
Highlights of the adjustment arrangements to HKG futures and options contracts are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
HKG Futures
Adjustment Procedures
Adjustment will be made to the open positions of HKG futures contracts which exist after the market close on 7 May 2007, the business day immediately before the ex-date. The details of the adjustment procedures are as follows:
Parallel Trading
After the market close on 7 May 2007, the business day immediately before the ex-date, 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-date, 8 May 2007. Details of the parallel trading on and after the ex-date 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.
HKG Options
Adjustment Procedures
Adjustment will be made to the open positions of HKG option series which exist after the market close on 7 May 2007, the business day immediately before the ex-date. The details of the adjustment procedures are as follows:
Parallel Trading
After the market close on 7 May 2007, the business day immediately before the ex-date, 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-date, 8 May 2007. Details of the parallel trading on and after the ex-date are shown below: