The Bank of East Asia, Limited Issues CBBCs Under Various Conditions

Strategic Insights -

The Bank of East Asia, Limited, a leading financial institution in Hong Kong, has announced the issuance of various types of Chinese Depositary Receipts (CBBCs) under different conditions. These CBBCs relate to shares of prominent companies such as Ping An Insurance (Group) Company of China, Ltd., China Life Insurance Company Limited, Geely Automobile Holdings Limited, Tencent Holdings Limited, and Great Wall Motor Company Limited. The CBBCs are designed to be traded on the Stock Exchange of Hong Kong.

Key Takeaways:

  • The Bank of East Asia, Limited has issued CBBCs with varying issue sizes, ranging from 30 million to 100 million CBBCs.
  • The CBBCs come with different styles and categories, including European style cash settled categories R.
  • The companies involved are Ping An Insurance (Group) Company of China, Ltd., China Life Insurance Company Limited, Geely Automobile Holdings Limited, Tencent Holdings Limited, and Great Wall Motor Company Limited.
  • The funding cost for the CBBCs fluctuates throughout their life and varies for each series.
  • The strike prices for the CBBCs are set at HK$82.90, HK$15.18, HK$22.50, HK$772.00, and HK$20.00 respectively.
  • The cash settlement amount per board lot, if any, is payable at expiry and is determined by the product condition and valuation date.
  • The closing price of one share is derived from the daily quotation sheet of the Stock Exchange, subject to any adjustments.

Statistics:

  • Issue sizes: 80,000,000 CBBCs, 100,000,000 CBBCs, 80,000,000 CBBCs, 30,000,000 CBBCs, and 80,000,000 CBBCs.
  • Borad lots: 5,000 CBBCs, 5,000 CBBCs, 5,000 CBBCs, 10,000 CBBCs, and 25,000 CBBCs.
  • Funding costs: HK$0.1620, HK$0.2252, HK$0.1280, HK$0.0100, and HK$0.1660.
  • Strike prices: HK$82.90, HK$15.18, HK$22.50, HK$772.00, and HK$20.00.
  • Launch date: 1 February 2021.
  • Maximum number of shares to which the CBBCs relate: 800,000, 2,000,000, 1,600,000, 300,000, and 1,600,000.

Sources:

  • https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0202/2021020201622.pdf