HKEx: Arrangements For Adjustment Of Bank Of East Asia Futures And Options

Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to the contract terms of all open Bank of East Asia (BEA) futures and options contracts in existence after the market close on 17 March 2009, the business day immediately before the ex-bonus date (ex-date), which is 18 March 2009, 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 BEA 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.

Underlying Stock	The Bank of East Asia, Limited
Corporate Action	One bonus share for every 10 existing shares
Ex-date	18 March 2009

BEA Futures

Adjustment Procedures

Adjustment will be made to the open positions of BEA futures contracts which exist after the market close on 17 March 2009, the business day immediately before the ex-date. The details of the adjustment procedures are as follows:

Adjustment Term	Formula
Adjustment Ratio (AR)	10 shares / (10 shares + 1 bonus share) = 0.9091
Adjusted Contracted Prices (ACP)	Contracted prices of outstanding stock futures contract × AR
Adjusted Contract Multiplier	Contracted prices of outstanding stock futures contract × (200 shares / ACP)

Parallel Trading

After the market close on 17 March 2009, 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, 18 March 2009. Details of the parallel trading on and after the ex-date are shown below:

Contract	Trading Symbol	Contract Multiplier (Shares)	Available for Trading	Addition of New Contract Months on and after the Ex-date
Adjusted	BEB	Approximately 220	From the ex-date to 29 Sep 2009	No
Standard	BEA	200	From the ex-date onwards	Yes

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.

BEA Options

Adjustment Procedures

Adjustment will be made to the open positions of BEA option series which exist after the market close on 17 March 2009 , the business day immediately before the ex-date. The details of the adjustment procedures are as follows:

Adjustment Term	Formula
Adjustment Ratio (AR)	10 shares / (10 shares + 1 bonus share) = 0.9091
Adjusted Exercise Price (AEP)	Exercise price of outstanding option series × AR
Adjusted Contract Size	Exercise price of outstanding option series × (200 shares / AEP)

Parallel Trading

After the market close on 17 March 2009, 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, 18 March 2009. Details of the parallel trading on and after the ex-date are shown below:

Contract	Trading Symbol	Contract Size (Shares)	Available for Trading	Addition of New Option Series on and after the Ex-date
Adjusted	BEB	Approximately 220 with fractional shares	From the ex-date to 29 Sep 2009	No
Standard	BEA	200	From the ex-date onwards	Yes

Investors should note that the cash settlement amount of adjusted and standard option series on the expiry day will be calculated using their respective contract sizes. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.