HKEx Arrangements For Adjustment Of China CITIC Bank Options

Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to the contract terms of all open China CITIC Bank options contracts in existence after the market close on 29 June 2011 to account for China CITIC Bank’s rights issue comprising two H rights shares for every 10 existing H shares held.

Highlights of the adjustment arrangements are shown below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.

Underlying Stock (Stock Code)	China CITIC Bank Corporation Ltd. (998)
Corporate Action	2 H rights shares for every 10 existing H shares
Rights Issue Price	$4.01
Ex-rights day	30 June 2011

Adjustment Procedures

Adjustments will be made to the open positions which exist after the market close on 29 June 2011, the business day immediately before the ex-rights day. Details of the adjustment procedures are as follows:

Adjustment Term	Formula	Remarks
Adjustment Ratio (AR)	10 old shares + (2 new shares x $4.01 / $S*) 10 old shares + 2 new shares	Rounded to the nearest 4 decimal places. Adjustment will only be made if the AR is smaller than 1.
Adjusted Exercise Price (AEP)	Exercise price of outstanding option series × AR	Rounded to the nearest 2 decimal places
Adjusted Contract Size (ACS)	Exercise price of outstanding option series x (1,000 shares / AEP)	Rounded to the nearest 4 decimal places

*	Where $4.01 is the issue price for the new shares and $S is the underlying stock closing price on the business day (29 June 2011) prior to the ex-rights day

Trading of Adjusted and Standard Contracts

After the market close on 29 June 2011, the business day immediately before the ex-rights 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-rights day, 30 June 2011. Details of the adjusted and standard contracts available for trading on and after the ex-rights day are shown below:

Contract	Trading Symbol	Contract Size (Shares)	Availability for Trading	Addition of New Option Series on and after the Ex-rights day
Adjusted	CTA	ACS	From ex-rights day to 29 March 2012	No
Standard	CTB	1,000	From ex-rights day 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.