10. Expiry and settlement - CBBCs

For CBBCs listed on Hong Kong Exchange are cash settled at expiry, calculated as below:

For a Category R “bull” CBBC = (Settlement Price - Strike Price) / Entitlement Ratio
For a Category R “bear” CBBC = (Strike Price - Settlement Price) / Entitlement Ratio

For CBBCs linked to a stock, the settlement price at expiry is the closing price of the underlying stock on the trading day before expiry.
For CBBCs linked to an index, the settlement price at expiry is the final settlement price of the corresponding index futures contract of the same expiry month as the CBBCs.

*Turnover of a warrant or CBBC has no direct relationship with the product's price. Investors should not use turnover as the only indicator when choosing a warrant or CBBC.