HONG KONG EXCHANGES AND CLEARING LIMITED Adjustment of China Shenhua Structured Products, Futures and Options
Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to China Shenhua Energy Company Ltd (China Shenhua) structured products, futures and options to account for China Shenhua's special dividend.
Overview
Company (Stock Code) | China Shenhua (1088) |
Corporate Action | Special Dividend in cash of RMB2.51 per share |
Ex-date | 29 June 2017 |
China Shenhua will hold the 2016 annual general meeting on 23 June 2017 to consider and approve the special dividend plan. The special dividend paid in HKD is calculated according to the exchange rate based on the average benchmark rate of RMB against HKD, as published by the Bank of China five business days preceding the date of declaration of dividend.
For details, please refer to the announcement made byChina Shenhua on 17 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 China Shenhua as underlying asset
The listing documents of all existing structured products with the shares of China Shenhua as underlying asset contain provisions that deal with a cash distribution including a special dividend. Structured product issuers will make announcements in the evening of 28 June 2017 regarding the relevant adjustments (including the adjusted entitlement, adjusted exercise price and adjusted call price, as appropriate) and investors should read the contents of such announcements carefully.
China ShenhuaFutures
Trading ArrangementsThe trading arrangements for the existing China Shenhua stock futures under trading symbol CSEwill be as follows:
| 1. | Adjustment and Transfer of Outstanding Positions
Open positions of China Shenhua stock futures series under trading symbol CSE 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 CSB. |
| 2. | Introduction of New Stock Futures Series for Trading On the ex-date, new China Shenhua stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol CSE. |
Adjustment Ratio (AR) | (underlying stock closing price - special dividend - ordinary dividend) / (underlying stock closing price - ordinary dividend) |
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 |
Adjusted | CSB | ACM | From ex-date to 28 December 2017 | No |
Standard | CSE | 10,000 | From ex-date onwards | Yes |
China ShenhuaOptions
Trading Arrangements
The trading arrangements for the existing China Shenhua stock options under trading symbol CSEwill be as follows:
| 1. | Adjustment and Transfer of Outstanding Positions
Open positions of China Shenhua stock option series under trading symbol CSEwhich 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 symbol CSB. |
| 2. | Introduction of New Stock Option Series for Trading On the ex-date, new China Shenhua stock option series based on the standard contract sizewill be introduced for trading under the standard trading symbol CSE. |
Details of the adjustment procedures for China Shenhua stock option series under trading symbol CSEare as follows:
Adjustment Ratio (AR) | (underlying stock closing price - special dividend - ordinary dividend) /(underlying stock closing price - ordinary dividend) |
Rounded to the nearest |
Adjusted Exercise Price (AEP) | Exercise price of outstanding stock option series x AR |
Rounded to the nearest |
Adjusted Contract Size (ACS) | Exercise price of outstanding stock option series x (500 shares / AEP) |
Rounded to the nearest |
Adjusted | CSB | ACS | From ex-date to 28 June 2018 | No |
Standard | CSE | 500 | From ex-date onwards | Yes |
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.Ends
HKEx - Hong Kong Exchanges and Clearing Ltd. published this content on 21 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 March 2017 09:41:14 UTC.
Original documenthttp://www.hkex.com.hk/eng/newsconsul/hkexnews/2017/1703212news.htm
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