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Customer Service / Corporate Action / What is Corporate Action

A listed company's behaviors that affect the company's stock price and shareholders' positions are called corporate actions. Common corporate actions include dividend distribution, bonus share distribution, rights issue, privatization, share split/merger, etc.

1. Process of corporate action

1.1 Announcement date

After a listed company decides to carry out corporate actions, it must first issue an announcement.

For example, 00973 L'OCCITANE issued an announcement on 2015-06-01, announcing dividends.

1.2 Ex-date (date on which corporate action is performed)

Shareholders who hold shares of the listed company after the market closes the day before the ex-right date will perform corporate actions.

After the announcement is made, it is necessary to decide a date for the specific implementation of corporate actions. The characteristics of Hong Kong stocks are: although the announcement has been issued, everything may change before the specific implementation, such as changing the execution date or even canceling the corporate action. Therefore, the information notice provided by Huaying is for reference only, and the final announcement of the exchange and listed companies shall prevail.

1.3 Delivery date

If stock or cash needs to be distributed during corporate actions, it will not be distributed on the ex-right day, but it will take time. The length of time is determined by the listed company and is uncertain until actual delivery.

Therefore, the information notice provided by Huaying is for reference only, and the final announcement of the exchange and listed companies shall prevail.

1.4 How to query company announcements?

i. Website link: https://www.hkexnews.hk/index_c.htm

ii. Enter stock code and date

iii. After clicking Search, the search results will appear, and you can view the content of the announcement