Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to the contract terms of all open The Hong Kong and China Gas Company Limited (Hong Kong & China Gas) futures and option contracts in existence after the market close on 5 June 2014, the business day immediately before the ex-bonus day, which is 6 June 2014, to account for Hong Kong & China Gas’s issue of 1 bonus share for every 10 existing 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) |
The Hong Kong and China Gas Company Limited (3) |
|
Corporate Action |
1 bonus share for every 10 existing shares |
|
Ex-bonus day |
6 June 2014 |
For details of the proposed issue of bonus shares, please refer to the announcement made by Hong Kong & China Gas on 19 March 2014:
Hong Kong & China Gas Futures
Adjustment Procedures
Adjustments will be made to the open positions of Hong Kong & China Gas stock futures contracts which exist after the market close on 5 June 2014, the business day immediately before the ex-bonus day. The 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 4 decimal places |
|
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 5 June 2014, the business day immediately before the ex-bonus day, the open positions will be transferred to the adjusted stock futures contracts. In addition, new contracts based on the standard contract multiplier will be introduced for trading on the ex-bonus day, 6 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 |
Availability For Trading |
Addition of New Stock Futures Contracts on and after the Ex-bonus day |
|
Adjusted |
HKE |
ACM |
From ex-bonus day to |
No |
|
Standard |
HKG |
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.
Hong Kong & China Gas Options
Trading Arrangements
The trading arrangements for the existing Hong Kong & China Gas stock options under trading symbols HKG and HKA1 will be as follows:
| 1. |
Transfer of Outstanding Positions |
| 2. |
Introduction of New Stock Option Series for Trading |
Details of the adjustment procedures to Hong Kong & China Gas stock option series under trading symbol HKG
|
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 (1,000 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-bonus day |
|
Adjusted |
HKE |
ACS |
From ex-bonus day to |
No |
|
Standard |
HKG |
1,000 |
From ex-bonus day onwards |
Yes |
Details of the adjustment procedures to Hong Kong & China Gas stock option series under trading symbol HKA
|
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 |
Availability For Trading |
Addition of New Stock Option Series on and after the Ex-bonus day |
|
Adjusted |
HKF |
ACS |
From ex-bonus day to |
No |
|
Adjusted |
HKA |
ACS* |
Nil |
No |
Investors should note that the adjusted and standard stock 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 | HKA stock option contracts are the adjusted contracts generated for capital adjustment made on 6 June 2013 due to the bonus issue of 1 bonus share for every 10 existing shares held. |
| 2 |
ACS* as per the contract sizes is stated in the comparative table of strike prices in the circular issued on 6 June 2013. |
