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Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to Henderson Land Development Company Ltd (Henderson Land) structured products, futures and options to account for Henderson Land’s bonus issue.
Overview
|
Company (Stock Code) |
Henderson Land (12) |
|
Corporate Action |
1 new share for every 10 shares held |
|
Ex-date |
7 June 2017 |
For details, please refer to the announcement made by Henderson Land on 21 March 2017.
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 Henderson Land as underlying asset
The listing documents of all existing structured products with the shares of Henderson Land as underlying asset contain provisions that deal with a bonus issue. Structured product issuers will make announcements in the evening of 6 June 2017 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price) and investors should read the contents of such announcements carefully.
Henderson Land Futures
Trading Arrangements
The trading arrangements for the existing Henderson Land stock futures under trading symbol HLD will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions Open positions of Henderson Land stock futures series under trading symbol HLD which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock futures series under trading symbol HLB. |
| 2. |
Introduction of New Stock Futures Series for Trading On the ex-date, new Henderson Land stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol HLD. |
Details of the adjustment procedures for Henderson Land stock futures series under trading symbol HLD 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 series x AR |
Rounded to the nearest |
|
Adjusted Contract Multiplier (ACM) |
Contracted price of outstanding stock futures series x |
Rounded to the nearest |
|
Contract |
Trading Symbol |
Contract Multiplier |
Availability For Trading |
Addition of New Stock Futures Series on and after the ex-date |
|
Adjusted |
HLB |
ACM |
From ex-date to 28 December 2017 |
No |
|
Standard |
HLD |
1,000 |
From ex-date onwards |
Yes |
For detailed trading and clearing arrangements, please refer to the circular.
Henderson Land Options
Trading Arrangements
The trading arrangements for the existing Henderson Land stock options under trading symbols HLD and HLA will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions Open positions of Henderson Land stock option series under trading symbols HLD and HLA which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock option series under trading symbols HLB and HLC respectively. |
| 2. |
Introduction of New Stock Option Series for Trading On the ex-date, new Henderson Land stock option series based on the standard contract size will be introduced for trading under the standard trading symbol HLD. |
Details of the adjustment procedures for Henderson Land stock option series under trading symbol HLD 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 |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-date |
|
Adjusted |
HLB |
ACS |
From ex-date to 28 June 2018 |
No |
|
Standard |
HLD |
1,000 |
From ex-date onwards |
Yes |
Details of the adjustment procedures for Henderson Land stock option series under trading symbol HLA are as follows:
|
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 option series x AR |
Rounded to the nearest |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding option series x |
Rounded to the nearest |
|
Contract |
Trading Symbol |
Contract Size |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-date |
|
Adjusted |
HLC |
ACS |
From ex-date to 29 June 2017 |
No |
|
Adjusted |
HLA |
ACS* |
Not available for trading from |
No |
| Note: | ACS* as per the contract sizes stated in the comparative table of strike prices in the circular issued on 3 June 2016. For more details, please refer to the circular. |
For detailed trading and clearing arrangements, please refer to the circular.
Investors should note that the adjusted and standard stock options 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.
