Capital Futures Corp. — HKEX Stock Futures Capital Adjustment Operational Procedures

1. Definition of Capital Adjustment

"Capital Adjustment" refers to the corresponding adjustments made by the Hong Kong Exchanges and Clearing Limited (HKEX) to the contracted price and contract multiplier of stock futures contracts when an underlying company announces a share subdivision (split) or consolidation (reverse split), or alters its capital structure via rights issues, bonus shares, cash dividends, or stock dividends.

2. Trading Restrictions & Mandatory Liquidation Procedures

In the event of a capital adjustment on stock futures, the Company reserves the right to restrict traders from opening/closing positions across all contract months of the affected product, and to commence mandatory liquidation (close-out) procedures, starting from 11:30 AM on the trading day immediately preceding the ex-entitlement date or corporate action effective date (capital adjustment effective date).

3. Resumption of Standard Contract Trading

The Company may permit traders to resume trading standard contracts on the effective date of the stock futures capital adjustment.