Category: Money tips Release Date: 2007-02-09
The industry is expected to be on the cards 50ETF devaluation covered warrants
It was reported that the pilot securities companies innovative issuers of covered warrants in the basic conditions, the above card 50ETF the subject of the first covered warrants the introduction of time will depend on split share structure reform process, the brokerage business process design and improve the level of risk control and other factors.
â—?covered warrants with the existing warrants of the similarities and differences between
Covered warrants are warrants in a broad sense, with the current issue of Baotou JTB1 varieties of a similar nature such as warrants. However, Baotou Steel Group, Baotou Steel JTB1 is instead a result of shares issued, while the covered warrants by third parties such as financial institutions, brokerages issued.
In addition, warrants and other Baotou JTB1 the right line is the stock settled, investors have a warrant to purchase one G to Baotou Steel Group, Baotou Steel shares. The covered warrants is the investor to a third party the right line brokerages and other financial institutions, either as Baotou JTB1 as to warrant a purchase of a stake in, also by brokerages and other financial institutions according to stock price and the warrant between the price distributing the difference to investors, cash-settled.
â—?Small is Big is the characteristics of covered warrants
Covered warrants in actual operation, with the current warrants little substantive difference between what is just in the final line of the right to exist certain differences, that is now the main stock warrants and covered warrants can be both the stock can also be a Cash. Therefore, the introduction of covered warrants warrants the present species does not yet have a substantial impact. But once the market go soft, covered warrants will likely lead to greater impact.
Covered warrants are also great fluctuations, with the current warrants a small stroke a big leverage. Furthermore, from the Hong Kong stocks covered warrants trend point of view, both about 0.01 Hong Kong dollars for covered warrants to obtain hundreds of times earnings reports, but also a Hong Kong dollars of covered warrants ultimately worthless information. Covered warrants in Hong Kong is also very crazy speculation in 2005, trading volume and turnover are highest in the world, but most of the retail transactions are said to play out. Therefore, covered warrants are a paradise for the brave.
