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15A.35

(1) The Exchange will publish a schedule (the "Stock Eligibility Schedule") of those stocks that are listed on the Exchange, which are eligible for structured product issuance and indicate whether the Exchange has imposed any restrictions on the types of structured product for which those stocks are eligible. The Stock Eligibility Schedule will generally be published at approximately quarterly intervals. The stocks appearing on the Stock Eligibility Schedule will be divided in to two categories: Single Scheduled Stocks and Basket Scheduled Stocks.
(2) Single Scheduled Stocks are those which are eligible as underlying securities for structured products issued over either a single class of shares or over a basket of shares. Basket Scheduled Stocks are those which are only eligible as underlying securities for structured products issued over a basket of shares.
(3) Basket Scheduled Stocks are further divided into Category 1 Basket Scheduled Stocks, Category 2 Basket Scheduled Stocks and Category 3 Basket Scheduled Stocks. These classifications determine the maximum weightings of these stocks as provided in rule 15A.32(3) above.

Notes:

(1) The Exchange will generally prepare the Stock Eligibility Schedule as set out below but may amend or vary the basis of preparation where it considers it appropriate to do so.
(2) Single Scheduled Stocks are those where the capitalisation of such shares in the hands of the public ("public float capitalisation") is at least HK$4 billion. Basket Scheduled Stocks are those where the public float capitalisation is at least HK$1 billion.
(3) The public float capitalisation requirements of HK$4 billion and HK$1 billion for shares underlying a structured product must be maintained for a qualifying period. A qualifying period ends on the cut off date for the preparation of the Stock Eligibility Schedule and is either:
(i) a period of 60 consecutive business days during which dealings in the shares of the company underlying the structured product have not been suspended; or
(ii) a period of no more than 70 consecutive business days comprising 60 business days during which dealings in the shares of the company underlying the structured product have not been suspended and no more than 10 business days during which dealings in the shares underlying the structured product have been suspended.
(4) Rules 8.08(1) and 8.24 provide guidance on calculating the number of shares "in the hands of the public." Shares which are subject to lock up arrangements will not be considered as being in the hands of the public until the lock up arrangements expire.
(5) The public float capitalisation as at the cut off date for preparation of the Stock Eligibility Schedule will be used to classify Basket Scheduled Stocks into Category 1, Category 2 or Category 3 Basket Scheduled Stocks as follows:
(i) stocks with a public float capitalisation of HK$1 billion up to and including HK$2 billion will generally be classified as Category 1 Basket Scheduled Stocks;
(ii) stocks with a public float capitalisation of above HK$2 billion up to and including HK$3 billion will generally be classified as Category 2 Basket Scheduled Stocks; and
(iii) stocks with a public float capitalisation of above HK$3 billion but less than HK$4 billion will generally be classified as Category 3 Basket Scheduled Stocks.