OREANDA-NEWS. Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to Henderson Land Development Company Limited (Henderson Land) structured products, futures and options to account for Henderson Land's bonus issue.

Overview 

Company (Stock Code)

Henderson Land (12)

Corporate Action

1 new share for every 10 shares held

Ex-date

6 June 16

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 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 2016 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price) 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-date will be adjusted and transferred to stock futures series under trading symbol HLA.
 

2.

Introduction of New Stock Futures Series for Trading

On the ex-date, 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 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

Adjusted

HLA

ACM

From ex-date to 29 December 2016

No

Standard

HLD

1,000

From ex-date onwards

Yes

Investors should note that the adjusted and standard stock futures 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 HLE will be as follows: 

1.

Adjustment and Transfer of Outstanding Positions

Henderson Land stock option series under trading symbols HLD and HLE1 which 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 symbols HLA and HLB respectively.
 

2.

Introduction of New Stock Option Series for Trading

On the ex-date, 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 options series under trading symbol HLD are as follows: 

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

Adjusted

HLA

ACS

From ex-date to 29 June 2017

No

Standard

HLD

1,000

From ex-date onwards

Yes

Details of the adjustment procedures for Henderson Land stock options series under trading symbol HLE are as follows: 

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 option series x AR

Rounded to the nearest
2 decimal places

Adjusted Contract Size (ACS)

Exercise price of outstanding option series x
(ACS*2 / AEP)

Rounded to the nearest
4 decimal places

Adjusted

HLB

ACS

From ex-date to 29 June 2016

No

Adjusted

HLE

ACS*

Not available for trading from
ex-date onwards

No

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.