I’ve decided to respond to the asinine information that continues to be convoluted on this board when it comes to how Triway shares distributed to current SIAF shareholders will be handled/treated by the likes of Avanza, Nordnet, etc.
Firstly, the premises from which your analysis of the information provided you should be based upon:
1) Brokers are nothing more than glorified bank tellers. Remember this whenever you seek advice from these “so-called” professionals.
2) Their supervisors are nothing more than glorified bank tellers who got the promotion because there was an opening and these firms hire internally.
3) Read. The internet is a glorious wealth of information on the subject.
Secondly, the process:
1) Triway’s HK agency receives a list of those individuals who held SIAF shares with the number of shares each held on the record date. The record date will occur two business days following the ex-dividend date.
2) Avanza, Nordea, etc. are listed as the shareholders of record. They will receive your allocation of Triway shares in their name, not yours. It will be up to Avanza, etc. to internally allocate the shares, accordingly, to SIAF investors based on their holdings as of the record date, which they would be able to do with a simple print-out of shares held as of the record date. If anyone here had been around when the F-share was distributed, it follows the same pattern as before.
3) Once the shares are registered on HKSE, (i.e. close of offering) the shares will be available in electronic form.
4) In the States, there is what is called an IPO lock-up period of six-months, which means that the distribution of those shares and the record date do not typically occur until after 6-months have passed the close of offering. In SIAF’s instance, the distribution is intended to occur before the IPO, and as to whether the lock-up period following the close of offering is still required (since, likely the shares already will have been held for six-months from the time of distribution to the time of IPO in order to meet Rule 144), is something that the SEC is likely having to provide its comments on as SIAF works through the regulatory process. Also, we’re talking about a foreign entity (Triway) trading on a foreign exchange (HKSE), so not really sure how much Rule 144 will apply in this instance. So, depending on the SEC’s interpretation of the matter, either the shares would be free-trading in your account at the time of IPO, or, if they insist otherwise, may only be available for trading 6-months following the IPO. Trust me when I say that the 6-month lock-up is SOP, not a contrived f*ck up on SIAF’s part that some of you will immediately try to place blame upon.
In conclusion, it is best to remind those at Avanza, Nordnet, etc. that much of the same procedure they had to follow for the F-share distribution is what they will be required to follow for the Triway distribution, as well.
Also, there is no way in hell that these large institutions do not trade on the HKSE. I can find any podunk brokerage firm in the US that can trade over the HKSE, and if they cannot handle the trade internally, they’d certainly have a custodian in Asia that can handle it for them. Custodian’s charge for their services, so maybe that’s the bottleneck that have them feeding you that line, because, otherwise, there are means for them to trade on the HKSE with little to any problem.
Hope this helps.
