1Wk·

Which date is relevant?

BYD timetable from the official circular document from their website:

"Last day of dealings in H Shares on a cum-entitlement basis relating to the Bonus Issue, Capitalization Issue and 2024 cash dividend: Monday, 9 June 2025"

Letter I have just received from ING:

"If you had shares of BYD Co. Ltd. in your securities account at the end of June 6, 2025, you are entitled to receive these bonus shares."

My English skills are not the worst, but the information from ING is wrong and the relevant day on which you had to have BYD shares in your securities account in the evening is June 9 and not June 6, i.e. if you still bought on June 9, you are safe, right? I haven't found any such information on the latter date, it was just the general meeting where everything was voted on.

18 Comments

Staatsmann@Staatsmann

1Wk

According to BYD itself, the relevant closing date is 09.06.2025.

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Dennis@Kunglao

1Wk

@Staatsmann just now. After half an hour of waiting on the ING hotline, I was only told that according to their information, the deadline was June 6 and they couldn't give me any other information. Now I don't know what to do because there is no contact address at ING for this kind of thing.

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Bino@WarrenWobuffet

1Wk

@Staatsmann Only which stock exchange? HK? FRA? NY ?

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Patrick Schäfer@Hotte1909

1Wk

@Kunglao can of course be related to the transfer to the depositary, normally this is then booked retrospectively. Just as an example, if you buy 1.5 shares on June 9, this does not mean that you will also have these 1.5 shares in the register on June 10. Fractional shares are more complicated anyway, as some of them are only traded once a week after the close of trading. But even with whole shares, it can take 1-2 days for them to be booked in correctly. This in turn can lead to your dividend being booked to another account first and only credited to you later. It may well be that your broker has set 6.6 for this to ensure that everything runs smoothly. I can't really answer the question of whether this is legally correct. But you bought the share without a dividend discount, so you are entitled to it. What the broker then does with it is different

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Patrick Schäfer@Hotte1909

1Wk

@WarrenWobuffet Home exchange normally hk

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X Nguyen@ngoog

1Wk

@Staatsmann Unfortunately no, the settlement period applies and this can take 2-3 days until the purchase of your shares is fully completed and booked in your securities account.

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Dennis@Kunglao

1Wk

@ngoog Where the hell are you supposed to find this information? And why are the brokers not referring to it? Even all the German financial news portals mention 10.06. as the deadline.

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X Nguyen@ngoog

@Kunglao because it is simply common practice, as it was until recently, that a SEPA transfer simply takes 1-2 days for the money to arrive. Nothing changes on the key date, I think you can compare it with an invoice payment, if the payment is received on 10.06., you don't make the transfer on 10.06. either (without instant transfer)

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Dennis@Kunglao

@ngoog Well, the difference is that if I buy the securities on June 9, gains and losses also affect me from that moment on, i.e. my money is gone and the price changes affect my portfolio. A split must then also have an effect.
The way it looks now, if you bought BYD shares after 06.06. and before 11.06., you have simply lost 66% of your money.

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Michael@Yrtharion

1Wk

I read more into the topic today and as I understand it, the shares purchased must be registered no later than June 11 at 16:30 Hong Kong time (according to BYD announcement). This means for a T+2 day settlement (HK standard) the purchase must have been made on June 9th 10am CEST at the latest to be "accepted" at the close of trading in HK on June 9th (4pm local time) to stay within the T+2 day settlement period. However, the record date is June 17.

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Dennis@Kunglao

1Wk

@Yrtharion I bought on 09.06. at 10:37....

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Dennis@Kunglao

@Yrtharion Update: Message from ING: "You are right, the cut-off date is June 9 at the close of trading, so all your shares will be taken into account".
Pooh

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Michael@Yrtharion

@Kunglao Very good! That also gives me some hope, for me it was 13:33.

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X Nguyen@ngoog

1Wk

What I have read in many videos and articles is that just because you bought shares on day X, the purchase of these shares is not immediately fully settled and deposited in your securities account. The so-called settlement period can take up to 3 days, which may indicate your message from ING, deadline 9.6. from BYD and 6.6. for ING for the buffer.

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Moritz@MoKi28

1Wk

Haven't investors who only had 9 shares in their portfolio, for example, been more or less expropriated? I think that's kind of blatant.

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Dennis@Kunglao

1Wk

@MoKi28 No, you will receive your bonus shares on your 9 shares. The only difference is that there will be no fractionals but rounding. This means that you will only receive 7 bonus shares instead of 7.2 for every 9 shares you hold.

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Moritz@MoKi28

@Kunglao Good to know, the communication was really not outstanding 😅

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Dennis@Kunglao

@MoKi28 but that was not due to BYD. All the information was available in their documents on the website

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