Category: Money tips Release Date: 2006-02-13
Shanghai Stock Exchange, Shenzhen Stock Exchange were recently issued "Interim Measures warrants." The person in charge of the two major exchanges to answer a reporter's question, said that warrants a leverage effect with the high-risk financial securities products, with a certain degree of investment risk. Investors need to note that the risk of price volatility, timely, risk and compliance risk. The person in charge of the two major exchanges to answer a reporter's question that the current design of the warrants, technological development and related research work has been completed, "Interim Measures" has been the approval of China Securities Regulatory Commission officially announced the introduction of warrants products basically completed the preparatory work.
When asked about the warrant and the relationship between the split share structure reform issue, the official said, warrants primarily of price discovery and risk management functions, it is a risk management and effective tool for resource allocation. 2 The main purpose of introduction of the C of E response to market needs of product innovation, the development of internationally accepted, and has a wide range of applications warrants market. Warrants as an independent financial products, with a wide range of applications. Currently launching warrants product is only part of the split share structure provides a tool for the public's choice. The program from the pilot's view, only a very few companies used in their programs warrants tool.
In response to the need for investors to trade warrants to open new accounts, the relevant responsible person said that the warrants and stock trading is similar to the stock accounts of the investors do not have to open new accounts. When talking about the risks of trading warrants, the relevant responsible person said that the warrant is a kind of leverage with the high-risk financial securities products, with a certain degree of investment risk. Investors need to pay attention to risks include: the risk of price volatility, timely, risk and compliance risk.
"Provisional Measures" has been on the corresponding risk prevention and control measures are given full consideration, including the strengthening of investment risk warning; pairs traded warrants corresponding to the size of the underlying stocks, liquidity strict limits in order to reduce the abnormal price fluctuations in warrants and the possibility of market manipulation; to warrant issuers ability to make high performance requirements. At the appropriate time, the exchange will draw on overseas markets warrant, "the Tap" mechanism so that the secondary market for warrants when required to increase supply to prevent the warrant price at a reasonable price from the region.
Official said the two major exchanges, improve the securities market requires a variety of different risk-return characteristics of financial products. Including warrants, including introduction of new products is an urgent need for the market. First, the policy environment is conducive to product innovation. "Country 9" The launch, the market environment has undergone great changes, and promoted the introduction of new products. Secondly, China's securities market has already started using the C of E as a financial tool, the participants for the warrants is no stranger to the features and functions. Shanghai stock market launched in 1992, once one of China's first C of E: Tai Fei Yue allotment warrants. At the same time, the market has strong demand for the warrants. Many securities companies in order to seek development, and has begun to sell to its customers through various channels such warrants products.
When talking about how to prevent the warrant after listing a variety of anomalies, the relevant responsible person said, the exchange will be pre-set targets and reasonable control tube, the warrant transaction price volatility or a serious departure from the underlying securities trading price, timely inspection, special monitoring ; for the occurrence of unusual transactions in the securities of major accounts, limit the warrants transactions; if there is suspicion of insider trading or market manipulation will be reported to the SFC investigation and action.
In addition, the exchange will be by improving the disclosure of transaction information warrants, the warrants may be released before opening a daily circulation of the number of warrants held by more than 5% of the C of E holders list, enhance market transparency
