Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to Belle International Holdings Ltd. (Belle International) structured products and options to account for Belle International's distribution of a special dividend.
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.
|
Underlying Stock (Stock Code) |
Belle International Holdings Ltd. (1880) |
|
Corporate Action |
Special Dividend of RMB0.25 per share |
|
Ex-date |
26 November 2014 |
For details of the special dividend, please refer to the announcement made by Belle International on 27 October 2014.
Structured products with shares of Belle International as underlying asset
The listing documents of all existing structured products with the shares of Belle International 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 25 November 2014 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price as appropriate) and investors should read carefully the contents of such announcements.
Belle International Options
Trading Arrangements
The trading arrangements for the existing Belle International stock option under trading symbol BIH will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions Open positions of Belle International stock option series under trading symbol BIH 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 BIA. |
| 2. |
Introduction of New Stock Option Series for Trading On the ex-date, new Belle International stock option series based on the standard contract size will be introduced for trading under the standard trading symbol BIH. |
Details of the adjustment procedures are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
(underlying stock closing price – ordinary cash dividend – special dividend) / (underlying stock closing price – ordinary cash dividend) |
Rounded to the nearest 4 decimal places |
|
Adjusted Exercise Price (AEP) |
Exercise price of outstanding option series x AR |
Rounded to the nearest 2 decimal places |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding option series x |
Rounded to the nearest 4 decimal places |
|
Contract |
Trading Symbol |
Contract Size |
Availability For Trading |
Addition of New Stock Option Series on and after the Ex-date |
|
Adjusted |
BIA |
ACS |
From ex-date to |
No |
|
Standard |
BIH |
1,000 |
From ex-date onwards |
Yes |
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.
