HKEX: Arrangements For Adjustment Of SMIC Structured Products And Futures

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to Semiconductor Manufacturing International Corporation (SMIC) futures to account for SMIC's share consolidation.

Overview

Company (Stock Code)	SMIC (981)
Corporate Action	Every ten (10) issued Existing Shares will be consolidated into one (1) Consolidated Share
Ex-date	21 November 2016
Corporate Action	The board lot size of SMIC for trading on the Stock Exchange will be changed from 1,000 Existing Shares to 500 Consolidated Shares
Ex-date	5 December 2016

Capital adjustment to the SMIC stock futures contracts will be made on the Effective Date based on the corporate action announced. No adjustment to the SMIC stock futures contracts will be made due to change of board lot size.

For details, please refer to the announcement made by SMIC on 30 September 2016.

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.

Structured products with shares of SMIC as underlying asset

The listing documents of all existing structured products with the shares of SMIC as underlying asset contain provisions that deal with share consolidations. Structured product issuers will make announcements in the evening of 18 November 2016 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price) and investors should read the contents of such announcements carefully.

Subject to the share consolidation becoming effective, structured product issuers will make announcements regarding the change in board lot size in the evening of 2 December 2016.

SMIC Futures

Trading Arrangements

The trading arrangements for the existing SMIC stock futures under trading symbol SMC will be as follows:

Adjustment and Transfer of Outstanding Positions

Open positions of SMIC stock futures series under trading symbol SMC which exist after market close on the business day immediately before the Effective Date will be adjusted and transferred to stock futures series under trading symbol SMA.

Introduction of New Stock Futures Series for Trading

On the Effective Date, new SMIC stock futures series with Contract Multiplier of 5,000¹ shares will be introduced for trading under the standard trading symbol SMC.

Details of the adjustment procedures for SMIC stock futures series under trading symbol SMC are as follows:

Adjustment Term	Formula	Remarks
Adjustment Ratio (AR)	10 Shares / 1 Consolidated Share = 10.0000	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 (ACM)	Contracted price of outstanding stock futures series x (50,000 shares / ACP)	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 the Effective Date
Adjusted	SMA	ACM	From Effective Date to 29 June 2017	No
Standard	SMC	5,000	From Effective Date onwards	Yes

Investors should note that the adjusted and standard stock futures 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.

For detailed trading and clearing operational arrangement, please refer to the circular.

1 The contract multiplier of SMIC stock futures contracts will be changed from the existing 50,000 Shares to 5,000 Shares