Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to Country Garden Holdings Company Limited (Country Garden) structured products, futures and options to account for Country Garden's spin-off and separate listing of Country Garden Services Holdings Company Limited (CG Services) by way of a distribution in specie.

Corporate action overview

Please refer to the announcements made by Country Garden on 19 March 2018 and 29 May 2018 for details.

Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.

Structured products with shares of Country Garden as underlying asset

The listing documents for structured products with the shares of Country Garden as underlying assets contain provisions that deal with corporate actions of the company, including spin-offs.  For the spin-off of CG Services, terms of Country Garden structured products, including entitlement, exercise price and call price, as appropriate, will be adjusted on the day following the listing of CG Services.

Trading of structured products with shares of Country Garden as underlying assets will be suspended from 11 June 2018 to 19 June 2018 (both date inclusive). During the suspension period, there will not be any Mandatory Call Events for Callable Bull/Bear Contracts, or CBBCs, linked to Country Garden.

Structured product issuers are required to make announcements regarding the above adjustments and trading suspensions, and investors should read the contents of such announcements carefully.

Adjustment of Country Garden Futures and Options

For detailed trading and clearing arrangement of Country Garden Futures and Options after the adjustments, please refer to the circulars posted on HKEX website.

Investors should note that the adjusted and standard stock futures and options will 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