Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to China Minsheng Banking Corp, Ltd (Minsheng Bank) structured products and options to account for the following bonus issue.
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.
Stock Name (Stock Code) |
China Minsheng Banking Corp., Ltd.(1988) |
Corporate Action |
Two Bonus Shares for every 10 existing Shares held |
Ex-bonus day |
12 June 2014 |
For details of the bonus issue, please refer to the announcement by Minsheng Bank on 22 April 2014.
Structured Products with shares of Minsheng Bank as underlying asset
The listing documents of all existing structured products with the shares of Minsheng Bank as underlying asset contain provisions that deal with a bonus issue. Structured product issuers shall make announcements in the evening of 11 June 2014 regarding the relevant adjustments (including the adjusted entitlement, adjusted exercise price and adjusted call price as appropriate) and investors should study carefully the contents of such announcements.
Minsheng Bank Options
Trading Arrangements
The trading arrangements for the existing Minsheng Bank stock option under trading symbol MSB will be as follows:
1. |
Transfer of Outstanding Positions |
|
2. |
Introduction of New Stock Option Series for Trading |
Details of the adjustment procedures are as follows:
Adjustment Term |
Formula |
Remarks |
Adjustment Ratio (AR) |
10 shares / (10 shares + 2 bonus shares) = 0.8333 |
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 |
Availability For Trading |
Addition of New Stock Option Series on and after |
Adjusted |
MSA |
ACS |
From ex-bonus day (12 June 2014) to 29 June 2015 |
No |
Standard |
MSB |
2,500 |
From ex-bonus day (12 June 2014) 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.