Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to the contract terms of all open Henderson Land Development Company Limited (Henderson Land) futures and option contracts in existence after the market close on 10 June 2014, the business day immediately before the ex-bonus day, which is 11 June 2014, to account for Henderson Land’s bonus issue of one new share for every 10 shares held.
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) |
Henderson Land Development Company Limited (12) |
|
Corporate Action |
Bonus issue of 1 new share for every 10 shares held |
|
Ex-bonus day |
11 June 2014 |
For details of the proposed bonus issue, please refer to the announcement made by Henderson Land on 20 March 2014:
Henderson Land Futures
Adjustment Procedures
Adjustments will be made to the open positions of the futures contracts which exist after the market close on the business day immediately before the ex-bonus day.
Details of the adjustment procedures are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
10 shares / (10 shares + 1 bonus share) = 0.9091 |
Rounded to the nearest |
|
Adjusted Contracted Price (ACP) |
Contracted price of outstanding stock futures contract x AR |
Rounded to the nearest 2 decimal places |
|
Adjusted Contract Multiplier (ACM) |
Contracted price of outstanding stock futures contract x (1,000 shares / ACP) |
Rounded to the nearest 4 decimal places |
Trading of Adjusted and Standard Contracts
After the market close on the business day immediately before the ex-bonus day, the open positions will be transferred to the adjusted stock futures contracts. In addition, new stock futures contracts based on the standard contract multiplier will be introduced for trading on the ex-bonus day, 11 June 2014.
Details of the adjusted and standard contracts available for trading on and after the ex-bonus day are shown below:
|
Contract |
Trading Symbol |
Contract Multiplier(Shares) |
Availability For Trading |
Addition of New Stock Futures Contracts on and after the Ex-bonus day |
|
Adjusted |
HLB |
ACM |
From ex-bonus day to |
No |
|
Standard |
HLD |
1,000 |
From ex-bonus day onwards |
Yes |
Investors should note that the cash settlement amount of adjusted and standard stock 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.
Henderson Land Options
Trading Arrangements
The trading arrangements for the existing Henderson Land stock options under trading symbols HLD and HLA1 will be as follows:
| 1. |
Transfer of Outstanding Positions |
| 2. |
Introduction of New Stock Option Series for Trading |
Details of the adjustment procedures to the stock option series under trading symbol HLD:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
10 shares / (10 shares + 1 bonus share) = 0.9091 |
Rounded to the nearest |
|
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 (1,000 shares / AEP) |
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-bonus day |
|
Adjusted |
HLB |
ACS |
From ex-bonus day to |
No |
|
Standard |
HLD |
1,000 |
From ex-bonus day onwards |
Yes |
Details of the adjustment procedures to the stock option series under trading symbol HLA:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
10 shares / (10 shares + 1 bonus share) = 0.9091 |
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 (ACS*2 / 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-bonus day |
|
Adjusted |
HLC |
ACS |
From ex-bonus day to |
No |
|
Adjusted |
HLA |
ACS* |
Nil |
No |
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.
| 1 | HLA stock option contracts are the adjusted contracts generated for the capital adjustment made on 4 June 2013 due to the bonus issue of 1 new share for every 10 shares held. |
| 2 | ACS* as per the contract sizes is stated in the comparative table of strike prices in the circular issued on 4 June 2013 |
