HKEX: Arrangements For Adjustment Of SOHO China Futures

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to SOHO China Ltd (SOHO China) futures to account for SOHO China’s special dividend.

Overview

Company (Stock Code)	SOHO China (410)
Corporate Action	Special Dividend of RMB0.19 per share
Ex-date	29 September 2016

The special dividend amount per share in Hong Kong dollars will be announced in due course.

For details, please refer to the announcement made by SOHO China on 17 August 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.

SOHO China Futures

Trading Arrangements

The trading arrangements for the existing SOHO China stock futures under trading symbols SOH and SOB¹ will be as follows:

Adjustment and Transfer of Outstanding Positions

Open positions of SOHO China stock futures series under trading symbols SOH and SOB 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 symbols SOC and SOD respectively.

Introduction of New Stock Futures Series for Trading

On the ex-date, new SOHO China stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol SOH.

Details of the adjustment procedures for SOHO China stock futures series under trading symbol SOH are as follows:

Adjustment Term	Formula	Remarks
Adjustment Ratio (AR)	(underlying stock closing price – special dividend) / underlying stock closing price	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 (10,000 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 ex-date
Adjusted	SOC	ACM	From ex-date to 30 March 2017	No
Standard	SOH	10,000	From ex-date onwards	Yes

Details of the adjustment procedures for SOHO China stock futures series under trading symbol SOB are as follows:

Adjustment Term	Formula	Remarks
Adjustment Ratio (AR)	(underlying stock closing price – special dividend) / underlying stock closing price	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 (ACM*^²/ 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 ex-date
Adjusted	SOD	ACM	From ex-date to 29 December 2016	No
Adjusted	SOB	ACM*	Not available for trading from ex-date onwards	No

The adjusted and standard stock futures series are distinct contracts and are represented by different trading symbols in HKATS/DCASS. Particulars of all existing and adjusted stock futures series will be shown in DCASS report TP011 after the DCASS batch processing on the business day immediately before the ex-date.

Capital adjustments, once being made, are conclusive and binding on all relevant stock futures contracts. The capital adjustments made will not be reversed even if the proposed corporate action is subsequently disapproved by relevant authorities, including but not limited to regulatory authorities and the court.

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

SOB stock futures contracts are the adjusted contracts generated from capital adjustment made on 20 May 2016 due to the special dividend of HK$0.41434 per share.

ACM* are the Adjusted Contract Multiplier generated from capital adjustment made on 20 May 2016 due to the special dividend of HK$0.41434 per share. Current ACM for the SOB stock futures are:

Contract Months	Adjusted Contract Multiplier
September 2016	11,202.3460
December 2016	11,202.3460

For details, please refer to the circulars issued in March and May 2016.