Thursday, December 30, 2010

Warning: on card retail do not "fool" warrants!

China Merchants Bank: http://newsletter, put five trading day on the end of the transaction, the reminder not to small and medium-sized retail "fool" speculation.

Following the August 15 242% single rose, 16, China Merchants Bank warrants and immediately staged a dramatic red high come down trend. On that day, China Merchants Bank warrant upward: 30%, subsequently, in a large number of the Bill, the warrant price rise quickly all the way to the high 0.958 element, or close to 100%. But after a short time after the consolidation, the warrant price quickly fell, around 11 a.m. to closing prices the following day. In the afternoon of the market, after several ups and downs, the warrant eventually received a peak of $ 0.673, fell nearly 30%. The day, China Merchants Bank warrant exchange rate up to 1008%, turnover 389.5 billion. In this round of roller coaster-like situation, many blindly for small and medium-sized retail there too late reaction was "stuck".

Some members pointed out that the Bank to warrant the intrinsic value is almost certainly due to zero, this round of speculation is big in a small number of warrants, a significant lack of risk awareness of retail investors blindly results.

The Shanghai Stock Exchange, the Exchange has a multi-pronged strengthening supervision of warrants, by limiting the number of transactions, temporary suspension and other measures to combat illegal trade, prompt trading risks. At present, China Merchants Bank warrants only five trading days, continues to warrant the secondary market "fool" speculation is cry.

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