Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to The Hong Kong and China Gas Company Limited (Hong Kong & China Gas) structured products, futures and option contracts to account for Hong Kong & China Gas’s proposed issue of bonus shares.
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 |
One bonus share for every 10 existing shares |
|
Ex-bonus day |
3 June 2015 |
For details of the proposed issue of bonus shares, please refer to the announcement made by Hong Kong & China Gas on 18 March 2015.
Structured products with shares of Hong Kong & China Gas as underlying asset
The listing documents of all existing structured products with the shares of Hong Kong & China Gas as underlying asset contain provisions that deal with a bonus issue. Structured product issuers will make announcements in the evening of 2 June 2015 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price as appropriate) and investors should read carefully the contents of such announcements.
Hong Kong & China Gas Futures
Trading Arrangements
The trading arrangements for the existing Hong Kong & China Gas stock futures under trading symbol HKG will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions Open positions of Hong Kong & China Gas stock futures series under trading symbol HKG which exist after the market close on the business day immediately before the ex-bonus day will be adjusted and transferred to stock futures series under trading symbol HKH. |
| 2. |
Introduction of New Stock Futures Series for Trading On the ex-bonus day, new Hong Kong & China Gas stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol HKG. |
Details of the adjustment procedures for Hong Kong & China Gas stock futures series under trading symbol HKG 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 series x AR |
Rounded to the nearest 2 decimal places |
|
Adjusted Contract Multiplier |
Contracted price of outstanding stock futures series x |
Rounded to the nearest 4 decimal places |
|
Contract |
Trading Symbol |
Contract Multiplier(Shares) |
Availability For Trading |
Addition of New Stock Futures Series on and after |
|
Adjusted |
HKH |
ACM |
From ex-bonus day to |
No |
|
Standard |
HKG |
1,000 |
From ex-bonus day onwards |
Yes |
Hong Kong & China Gas Options
Trading Arrangements
The trading arrangements for the existing Hong Kong & China Gas stock options under trading symbols HKG and HKE Note 1will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions Open positions of Hong Kong & China Gas stock option series under trading symbols HKG and HKE which exist after the market close on the business day immediately before the ex-bonus day will be adjusted and transferred to stock option series under trading symbols HKH and HKJ respectively. |
| 2. |
Introduction of New Stock Option Series for Trading On the ex-bonus day, new Hong Kong & China Gas stock option series based on the standard contract size will be introduced for trading under the standard trading symbol HKG. |
Details of the adjustment procedures for Hong Kong & China Gas stock option series under trading symbol HKG 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 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 |
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 |
|
Adjusted |
HKH |
ACS |
From ex-bonus day to |
No |
|
Standard |
HKG |
1,000 |
From ex-bonus day onwards |
Yes |
Note 1: HKE stock option contracts are the adjusted contracts generated from capital adjustment made on 6 June 2014 due to bonus issue of one bonus share for every 10 existing shares.
Details of the adjustment procedures for Hong Kong & China Gas stock option series under trading symbol HKE 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 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 |
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 |
|
Adjusted |
HKJ |
ACS |
From ex-bonus day to |
No |
|
Adjusted |
HKE |
ACS* |
Not available for trading from ex-bonus day onwards |
No |
Note 2: ACS* as per the contract sizes is stated in the comparative table of strike prices in the circular issued on 5 June 2014.
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.
