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Hong Kong Exchanges and Clearing Limited has announced the arrangements for the adjustment to Power Assets Holdings Ltd (Power Assets) structured products, futures and options to account for Power Assets’ special interim dividend.
Overview
|
Company (Stock Code) |
Power Assets (6) |
|
Corporate Action |
Special Interim Dividend of $7.50 per Share |
|
Ex-date |
18 August 2017 |
For details, please refer to the announcement made by Power Assets on 20 July 2017.
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.
Structured products with shares of Power Assets as underlying asset
The listing documents of all existing structured products with the shares of Power Assets as underlying asset contain provisions that deal with a cash distribution including a special dividend. Structured product issuers will make announcements in the evening of 17 August 2017 regarding the relevant adjustments (including the adjusted entitlement, adjusted exercise price and adjusted call price, as appropriate) and investors should read the contents of such announcements.
Power Assets Futures
Trading Arrangements
The trading arrangements for the existing Power Assets stock futures under trading symbol HEH and HEB Note 1 will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions Open positions of Power Assets stock futures series under trading symbols HEH and HEB which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock futures series under trading symbols HEC and HED respectively. |
| 2. |
Introduction of New Stock Futures Series for Trading On the ex-date, new Power Assets stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol HEH. |
| Note 1 |
HEB stock futures contracts are the adjusted contracts generated from capital adjustment made on 14 February 2017 due to the special interim dividend of HK$5.00 per share. |
Details of the adjustment procedures for Power Assets stock futures series under trading symbol HEH are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
(underlying stock closing price – interim dividend – special interim dividend) / (underlying stock closing price – interim dividend) |
Rounded to the nearest |
|
Adjusted Contracted Price (ACP) |
Contracted price of outstanding stock futures series x AR |
Rounded to the nearest |
|
Adjusted Contract Multiplier (ACM) |
Contracted price of outstanding stock futures series x (500 shares / ACP) |
Rounded to the nearest |
|
Contract |
Trading Symbol |
Contract Multiplier(Shares) |
Availability For Trading |
Addition of New Stock Futures Series on and after the ex-date |
|
Adjusted |
HEC |
ACM |
From ex-date to 28 March 2018 |
No |
|
Standard |
HEH |
500 |
From ex-date onwards |
Yes |
Details of the adjustment procedures for Power Assets stock futures series under trading symbol HEB are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
(underlying stock closing price – interim dividend – special interim dividend) / (underlying stock closing price – interim dividend) |
Rounded to the nearest |
|
Adjusted Contracted Price (ACP) |
Contracted price of outstanding stock futures series x AR |
Rounded to the nearest |
|
Adjusted Contract Multiplier (ACM) |
Contracted price of outstanding stock futures series x |
Rounded to the nearest |
|
Contract |
Trading Symbol |
Contract Multiplier(Shares) |
Availability For Trading |
Addition of New Stock Futures Series on and after the ex-date |
|
Adjusted |
HED |
ACM |
From ex-date to 28 September 2017 |
No |
|
Adjusted |
HEB |
ACM* |
Not available for trading from ex-date onwards |
No |
| Note 2 |
ACM* as per the contract multiplier stated in the comparative table of contract multipler in the circular issued on 13 February 2017, please refer to the hyperlink. |
For detailed trading and clearing arrangements, please refer to the circular.
Power Assets Options
The trading arrangements for the existing Power Assets stock options under trading symbols HEH and HEB will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions Open positions of Power Assets stock option series under trading symbol HEH and HEB which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock option series under trading symbol HEC and HED respectively. |
| 2. |
Introduction of New Stock Option Series for Trading On the ex-date, new Power Assets stock option series based on the standard contract size will be introduced for trading under the standard trading symbol HEH. |
Details of the adjustment procedures for Power Assets stock options series under trading symbols HEH and HEB are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
(underlying stock closing price – special interim dividend – interim dividend) / (underlying stock closing price – interim dividend) |
Rounded to the nearest 4 decimal places |
|
Adjusted Exercise Price (AEP) |
Exercise price of outstanding stock option series x AR |
Rounded to the nearest 2 decimal places |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding stock option series x (500 shares / AEP) |
Rounded to the nearest 4 decimal places |
|
Contract |
Trading Symbol |
Contract Size(Shares) |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-date |
|
Adjusted |
HEC |
ACS |
From ex-date to 28 June 2018 |
No |
|
Standard |
HEH |
500 |
From ex-date onwards |
Yes |
Details of the adjustment procedures for Power Assets stock options series under trading symbol HEB are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
(underlying stock closing price – interim dividend – special interim dividend) / (underlying stock closing price – interim dividend) |
Rounded to the nearest |
|
Adjusted Exercise Price (AEP) |
Exercise price of outstanding option series x AR |
Rounded to the nearest |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding option series x (ACS*Note 3/ AEP) |
Rounded to the nearest |
|
Contract |
Trading Symbol |
Contract Size(Shares) |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-date |
|
Adjusted |
HED |
ACS |
From ex-date to 28 December 2017 |
No |
|
Adjusted |
HEB |
ACS* |
Not available for trading from ex-date onwards |
No |
| Note 3 | ACS* as per the contract sizes stated in the comparative table of strike prices in the circular issued on 13 February 2017, please refer to the hyperlink. |
Investors should note that the adjusted and standard stock options 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. For detailed trading and clearing arrangements, please refer to the circular.
