Category: Money tips Release Date: 2006-04-04
Baosteel has raised the stock market exists to warrant pushing the price may rise, institutions are cautious
Although the Shanghai Baosteel Group Corporation warrants to pay today, not accompanied by Baoshan Iron & Steel (600019.SH) of the stock to resume trading and immediately became only the first landing of new warrants, but it is likely to begin today, the impact Baosteel's share price after the resumption, This will also be a new warrant for the first time to release energy in the securities market.
Shanghai Baosteel Group Corporation Baoshan Iron and Steel shares issued to the subject securities warrants will be 22 at the Shanghai Stock Exchange.
"Baosteel During the resumption to the warrants listed on the market warrants outstanding shares allocated to shareholders, there are shares of Baosteel has raised with a view to selling high-priced warrants warrants listed on the possibility." Core Pacific Venture Group, the investment manager Zhao Qixin so explain the details.
Shares rose after the resumption after the pilot is due to compensatory growth and the G Unit Quotes. These factors will be equally Baosteel also play a role. Zhao Qixin said Baosteel stocks relative to other pre-G board or small, has a certain uplink space.
Executive Deputy General Manager of China Merchants Fund Management Co., Ltd. Long War has also said that if the broader market the two cities during the suspension Baosteel noticeable rise in stock prices after the resumption will be calculated ex than the original reference value is higher the value of warrants will be the relative increase .
In the previous 46 pilot listed companies, only Baosteel and China Yangtze Power (600900.SH) the share reform program has Certificate of Entitlement Scheme. Although Yangtze Power ahead of Baoshan Iron and Steel shares resume trading, but the Yangtze Power's warrants do not have much impact on their stock price.
According to estimates, Baosteel on the price of warrants do not contain the natural ex-rights price to pay at 4.21 yuan.
Zhao Qixin said Yangtze Power share reform program "In the warrant is exercisable for days, the holders of warrants traded the right to 1.80 yuan each, sold to Three Gorges Project Corporation," in fact set up Paul at the end of the price of their Warrants 1.80 yuan, trying to prop up share prices led the way through the warrant price, the price of the warrants will be far smaller than the impact and profitability of Baosteel, so all eyes are focused on some investors to the Baoshan Iron & Steel body. In warrants listed on Baosteel is expected to Baosteel shares will be 4.7 yuan to 5.0 per hour, the value of warrants should be 0.7 yuan to 0.9 yuan. If you prop up share prices 1 yuan, then the warrant price and investment return will be doubled. And the number of warrants in circulation in the market, Baosteel Warrants to 387.7 million copies, Yangtze Power is less than 5.83 million copies of warrant.
As of the end of first half of 2005, the Fund holds 44.52% of the outstanding shares of Baoshan Iron & Steel, so the fund will also become the largest holders of warrants. Everbright Pramerica Fund Management Company Capital one person said warrants traded, adequate liquidity is the most critical factor. Commission published a notice in operation for the warrant to remove regulatory trade barriers to provide liquidity. As can be 3% of investment fund shares warrants, which warrants will be possible to effectively promote active trading market.
But the market speculation warrants the main body is unlikely. Fortis and the rich countries, including the sea, including a number of fund companies, have unanimously expressed that right warrants cautious attitude.
Shenyin Wanguo Securities Research Institute analyst Yang Guoping that the warrants market as a high-risk high-yield market, market participants mainly dominated investor risk appetite.
He further explained that, QFII participation is unlikely, mainly including: the market was small, there is no market-maker system, QFII worried about market liquidity, there is no short-mechanism, warrants pricing basis is being challenged, there is no sustained release mechanism, significantly deviate from the theoretical value of the market price of the lack of market mechanism for automatic correction. For the same reasons, the fund companies, insurance companies, even if the regulators allow the participation of the possibility of its large-scale intervention is not much.
Stock and warrants for the hype behavior, war he says, despite the theoretical existence of warrants and the underlying stock at the same time the possibility of manipulation, but regulators or stock exchanges often the subject of the size and mobility of a strictly limited, and the transaction behavior under strict supervision, in practice, the successful implementation of the possibility of such manipulation is not significant.
In mid-July introduced the "Warrants Interim Measures," in these areas, detailed provisions are made.
Related links: institutions predict that Baosteel Warrants Recently, several research institutions have issued a warrant listed on Baosteel's investment strategy report.
TX Investment Consulting's analysis of teacher to Peng, said Baosteel Warrants, if less than 0.35 yuan, it may consider buying, higher than 0.60, it should be sold. As the shares of Baoshan Iron and Steel Group to reform triggered within two months after the commitment to buy the stock and thus that the first two months of Baoshan Iron and Steel warrants strong operability is not recommended for long-term holding, unless the price is grossly underestimated.
Shenyin Wanguo Securities Research Institute analyst suggested Yang Guoping, 10 months ago, investors who do not have a warrant, if the warrant price is lower than 0.7 per can consider buying. If the firm bought less than 0.60, the share price below 5.20 yuan, 1 yuan higher than the warrant price of warrants can be thrown.
Zhang Guanglei financial engineering researcher at Industrial Securities in a research report that Baosteel warrants at a reasonable price from 0.3786 to 0.9588 yuan; longer warrant a reasonable price for electricity from 2.9947 to 3.3179 yuan.
Core Pacific Venture Group, the investment manager Zhaoqi Xin said that warrants in the first few trading days of speculation that may arise after the substantial deviation from the value of stepwise regression situation. In the long-term investors should not blindly chasing the high.
