Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to Henderson Land Development Company Limited (Henderson Land) structured products, futures and option contracts to account for Henderson Land'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) |
Henderson Land Development Company Limited (12) |
|
Corporate Action |
One new share for every 10 shares held |
|
Ex-bonus day |
4 June 2015 |
For details of the proposed issue of bonus shares, please refer to the announcement made by Henderson Land on 23 March 2015.
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 3 June 2015 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price as appropriate) 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-bonus day will be adjusted and transferred to stock futures series under trading symbol HLE.
|
| 2. |
Introduction of New Stock Futures Series for Trading
On the ex-bonus day, 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
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
(1,000 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-bonus day |
|
Adjusted |
HLE |
ACM |
From ex-bonus day to
30 December 2015 |
No |
|
Standard |
HLD |
1,000 |
From ex-bonus day onwards |
Yes |
Investors should note that the adjusted and standard stock futures series have different contract multipliers. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.
Henderson Land Options
Trading Arrangements
The trading arrangements for the existing Henderson Land stock options under trading symbols HLD and HLB Note 1 will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions
Open positions of Henderson Land stock option series under trading symbol HLD and HLB 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 HLE and HLF respectively.
|
| 2. |
Introduction of New Stock Option Series for Trading
On the ex-bonus day, 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
(1,000 shares / AEP) |
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 the ex-bonus day |
|
Adjusted |
HLE |
ACS |
From ex-bonus day to
29 June 2016 |
No |
|
Standard |
HLD |
1,000 |
From ex-bonus day onwards |
Yes |
Note 1: HLB stock option contracts are the adjusted contracts generated from capital adjustment made on 11 June 2014 due to bonus issue of one bonus share for every 10 existing shares.
Details of the adjustment procedures for Henderson Land stock option series under trading symbol HLB 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
(ACS*Note 2 / AEP) |
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 the ex-bonus day |
|
Adjusted |
HLF |
ACS |
From ex-bonus day to
29 June 2015 |
No |
|
Adjusted |
HLB |
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 10 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.
Ends