OREANDA-NEWS. 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 RMB0.348 per share

Ex-date

20 May 2016

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

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 symbol SOH will be as follows:

1.

Adjustment and Transfer of Outstanding Positions

Open positions of SOHO China stock futures series under trading symbol SOH 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 SOB.
 
2.

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 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

Adjusted

SOB

ACM

From ex-date to 29 December 2016

No

Standard

SOH

10,000

From ex-date onwards

Yes

Investors should note that the adjusted and standard stock futures series will 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.