国内精品一区二区三区最新_不卡一区二区在线_另类重口100页在线播放_精品中文字幕一区在线

The Chinese mainland's warrant market has taken off to become the second biggest in the world in terms of turnover less than a year after being launched.

 

Figures provided by the Guotai and Junan Securities Company show total warrant turnover on the Shanghai and Shenzhen Stock Exchanges, China's two bourses, reached 938.9 billion yuan (US$117.2 billion) in the first half, exceeding that of Hong Kong and second only to Germany, the Shanghai Securities News reported Tuesday.

 

Securities investors holding a warrant have the option to buy or sell designated stock at a certain price within a designated period.

 

Investors can profit by selling without exercising their options.

 

The government gave the go-ahead for warrant trading last August to promote its state-shareholding reform, also known as split share structure reform.

 

The split share structure refers to the existence of both tradable shares and non-tradable shares owned by the state.

 

To make all their shares tradable, listed companies undergoing reform must offer additional shares or funds to private investors as compensation for potential losses in the value of their portfolios when the state-owned shares hit the market.

 

Warrants have become a preferred option for listed companies that cannot afford cash or share compensation.

 

Twenty-three listed companies have issued warrants. The Shanghai-based Baosteel company became the first last August, when its price closed at 1.263 yuan on the first trading day, but it had dropped to 0.63 yuan on Tuesday. The most expensive warrant on Tuesday was issued by the Wanhua Company, the Shanghai-based water treatment firm, which stood at 11.427 yuan on Tuesday.

 

In the first half, warrants accounted for 19 percent of the total turnover in the two exchanges, making them the second most commonly traded financial product in mainland securities markets.

 

Some analysts attribute the rocketing warrant turnover to the country's restrictions on ordinary share trading.

 

Chinese securities regulations aim to curb speculation by limiting sales of certain shares to once per trading day. Trading is suspended if prices of these shares fluctuate by more than 10 percent in one day.

 

Speculators therefore prefer warrant trading with its lack of restrictions.

 

China's stock market has recovered from five years of bearish performance with major index staying at around 1,700 points, compared with 998 points in early June last year.

 

(Xinhua News Agency July 26, 2006)