The share-trading reform in new things on the horizon "warrants" products, has recently obtained the relevant regulations of "supporting". Yesterday, the Shanghai and Shenzhen stock exchanges at the same time, two major announcements, the entitlement management procedures (hereinafter referred to as the "rules") have been approved by China Securities Regulatory Commission, and the promulgation and implementation from today. According to the "rules", investors can trade like stock, warrants as stock exchanges will also be strict risk control, to prevent market investor as speculation.
After 1 month of public opinion, the amendments enacted by the "rules" is divided into five chapters, a total of 49, the definition of the warrants, the listing of the species, distribution, and performance guarantees, transactions, row right, settlement and punishment in violation of such major issues as to the detailed provisions.
This reporter has learned that the revised procedures strictly the warrants market conditions, relaxed during the existence of the warrants, increase credit guarantee as performance guarantees. It is also appropriate to reduce the magnitude of the rise and fall of warrants, and refinement of information disclosure and penalties. Industry noted that this would make the rules more actionable.
In addition, two large stock exchange listing of warrants trading rules are basically the same, the only difference is that the right of the card number is 100 zhengxingquan declare an integer multiple of copies, and the Shenzhen Stock Exchange the number of allowed fragmented zhengxingquan right.
The person on a card explaining yesterday said the "rules" that warrants trading and stock buy convenience, as at the date of the warrants, the day you can sell. Existing investors in the stock accounts do not have to open a new account. According to the "rules" that warrants trading account is the stock account, investors can be provided by computer terminal, on-line transaction platform, telephone channels input such as declare the delegate account, warrant code, price, quantity, and the sale of direction, and other information to trading warrants.
"Measures" is also the main highlights risk warrants products, particularly dramatic swings in prices. Due to the high leverage warrants, its price is only about the subject securities the price of a smaller scale, there might be a dramatic swings in warrant price, paying particular attention to small and medium-sized investors.
Experts further explains, for example T-1 may warrant closing price is $ 2, mark stock's closing price is $ 10. T, stocks fell to $ 9, if the warrant has not fallen, press the "rules", T, fallen warrants at a price of 2-(10-9) × 125% = $ 0.75. A day of entitlement by 62.5%, decrease more than stock. Of course, the underlying rise in the value of the warrant also has the same effect.
On such a high risk, high return new derivative products, regulatory authorities will risk prevention and information disclosure strictly require warrants hold big time "see the light". Exchange regulations requiring warrants in the daily opening the announced number of warrants to circulation, the number of warrants holding more than 5 per cent of the warrant holders list, enhanced the transparency of the market. In addition, the Exchange will in due time to allow the creation of qualified institutions, warrants for on-demand increase secondary market warrants supply to prevent the warrant price from reasonable price range.
In addition, in accordance with the rules stipulated that warrants issuers do not buy and sell their issuance of warrants, securities issuers do not buy and sell securities in the corresponding subject. Underlying the suspension, resumption or corresponding warrants suspension lifted. The card is based on market demand has the right to suspend trading warrants. Already traded warrants, qualified organisations can create the same kind of entitlement.
While holding down the right warrants shall be entrusted to the Member on the card through the trading system. The right to declare the quantity of zhengxingquan 100 integer times. The right to declare on line on the day of the effective date of the directive, may be set aside. Buy warrants that day, that day can exercise. On line is the subject of the right to acquire securities, not sold.
In the following circumstances, the warrant will be to terminate the listing and trading: warrants remaining 2 working days prior to the expiry; the warrant will quot. has been all rows on the right; the identification of other circumstances. Warrants remaining prior to the expiry of the five trading days, warrants termination transaction, but can exercise.
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