HONG KONG EXCHANGES AND CLEARING LIMITED Adjustment of Digital China Structured Products and Futures
Hong Kong Exchanges and Clearing Limited has announced the arrangements for the adjustment toDigital China Holdings Ltd (Digital China) structured products and futures to account for Digital China'srights issue.
Overview
Company (Stock Code) | Digital China (861) |
Corporate Action | 1 Rights Share for every 4 Shares held |
Subscription Price | $4.00 |
Ex-rights date | 10 August 2017 |
For details, please refer to the announcement made byDigital China on 23 July 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 Digital China as underlying asset
The listing documents of all existing structured products with the shares of Digital China as underlying asset contain provisions that deal with a rights issue. Structured product issuers will make announcements in the evening of 9 August 2017 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price, where appropriate). Investors should read the contents of such announcements on the relevant adjustments.
Digital ChinaFutures
Trading Arrangements
The trading arrangements for the existing Digital China stock futures under trading symbol DIGwill be as follows:
| 1. | Adjustment and Transfer of Outstanding Positions
Open positions of Digital China stock futures series under trading symbol DIG which exist after the market close on the business day immediately before the ex-rights date will be adjusted and transferred to stock futures series under trading symbol DIA. |
| 2. | Introduction of New Stock Futures Series for Trading On the ex-rights date, new Digital China stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol DIG. |
Adjustment Ratio (AR) | 4 existing Shares + (1 New Share x $4.00 / $S^) | Rounded to the nearest 4 decimal places. Adjustment will only be made if the AR is smaller than 1. |
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 | Rounded to the nearest 4 decimal places |
Where $4.00 is the Subscription Price for the New Share and $S^ is the underlying stock closing price on 9 August 2017 (the business day immediately before the ex-rights date).
Adjusted | DIA | ACM | From ex-rights date to 28 March 2018 | No |
Standard | DIG | 5,000 | From ex-rights date onwards | Yes |
For detailed trading and clearing arrangements, please refer to the circular.
Ends
HKEx - Hong Kong Exchanges and Clearing Ltd. published this content on 25 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 July 2017 09:54:02 UTC.
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