The function of creating warrants for arbitrage and hedging with one capital and ten thousand profits was submerged by speculative tide

□ Reporter Xu Guojie reports from Shanghai

Although the number of put warrants of WISCO has increased to 1.7 billion, and the number of call warrants listed yesterday (29 days) has also reached about 157 million, the enthusiasm of securities companies to continue to create warrants is not fading, and it is expected that new warrants will still be listed in the next few days. At the same time, the corresponding warrant price in the market also fluctuated significantly, making the warrant trading the biggest attraction in the market at present. Some fund companies pointed out that although they would like warrant products to carry out hedging operations such as arbitrage or hedging to improve and stabilize performance

The function of the warrant can not play at all. In the face of abnormally high warrant prices, rational investors have to sell. For investors who follow the trend, they should be more careful about the huge risks involved.

　　 Create warrants with one capital and ten thousand profits

Fund insiders said that in the face of warrants that have been seriously divorced from their theoretical value, fund companies are unlikely to buy Baosteel or WISCO warrants. However, some fund companies told reporters that they had sold all their warrants when WISCO warrants went up and down crazily. On the other hand, warrants are also popular for those who may create warrants

Yang Dong, General Manager of Industrial Fund Company, believes that if the creation mechanism can be implemented without restrictions, the current WISCO stock of about 2.8 yuan still has great appeal, because the creation and issuance of WISCO warrants based on 2.8 yuan and the current closing price of warrants still have rich profits. From the perspective of risk return ratio, securities companies have a strong incentive to create warrants. The market expects that Baosteel may also be approved to issue creation warrants. Once this happens, Baosteel will have more room for growth.

Du Changyong, chief investment officer of Industrial Fund, said that in overseas, warrants can be regarded as a kind of bet between the issuer and the purchaser. If the price of warrants is abnormally high in the early stage, it is almost a one-sided bet, the probability of the founding institution winning is almost 100%, while that of ordinary investors is almost zero.

BOCOM Schroder Fund said that under the current high warrant price, the issuance of warrants by securities companies has become a business with huge profits. The number of put warrants created by Wuhan Iron and Steel Group has reached 1.1 billion, which shows the profit margin. Another fund company pointed out that at the current warrant price, the return of the warrants created by the originator is likely to reach more than 100% or even more per year. If the institution creates the same amount of put and call warrants at the same time, even if the stock price of WISCO is zero, the broker can still get enough return.

　　 Warrant crazy eventually

Tianzhi Fund believes that the current market focus is on the warrant trading and related stocks. The call and put warrants of Wuhan Iron and Steel Group have been trading up and down for several consecutive days after listing. Although they are far higher than their basic value, the enthusiasm of the market has obviously not subsided. Even under the background of the continuous creation system launched by the regulators last week, the price of warrants did not fall, but rose in large quantities, indicating that the warrant market has entered an extremely crazy stage.

Tianzhi Fund believes that the extreme craziness of warrants may play a positive role in the stock market in the short term. First of all, the popularity of warrants has stimulated investors to find listed companies that are qualified to issue warrants, which is conducive to the stability of large cap stock prices. Secondly, some stocks that issue warrants are significantly stronger than the overall market. This is because the creation of call warrants requires securities companies to buy corresponding stocks as collateral to enhance the incentive for securities companies to go long. However, Tianzhi Fund believes that derivatives will not bring

However, some fund companies believe that the popularity of warrants will withdraw funds. If all 1.1 billion newly created warrants are sold, it means that about 3 billion funds will be withdrawn. With the expansion of the warrant market, this impact may become more and more obvious.

　　 Regulation is an art

Yang Dong, the general manager of Industrial Fund, believes that with the gradual implementation of WISCO's warrant creation mechanism, WISCO's call warrants can theoretically increase by more than 2 billion, while the number of put warrants can increase is unlimited. It can be predicted that innovative securities companies will earn huge profits. The creation mechanism of warrants will set a feast for innovative securities companies, and the tribute of the feast will be countless warrant buyers. Secondly, market speculators will suffer heavy losses, or even lose their money. The money of speculators will be converted into huge profits of innovative securities companies that issue warrants, and there will be an obvious wealth transfer. In this regard, Yang Dong reminded warrant speculators that they should have a clear understanding. Even in the Hong Kong market, where the warrant market has been quite mature, relevant statistics show that 70% of warrant investors have lost money, many of which have lost their money.

Some insiders worry about whether the warrant market will become a bleeding machine, and the money of small and medium-sized retail investors will continue to flow into the establishment institutions. If many retail investors leave nightmarish memories in the warrant market, it may be detrimental to the future development of warrants and other innovative products in the market.

Du Changyong, the chief investment officer of Industrial Fund, said that if the warrants were only manipulated by a few big speculators, it would be reasonable to introduce policies to calm speculation as soon as possible, so that big speculators could learn a lesson. However, if numerous fanatical small and medium-sized retail investors bought warrants, whether rhythm should be considered when launching the powerful tool of creating warrants. In this sense, the warrant market is also a test for the regulatory authorities. How to grasp the rhythm between gradually expanding the capacity of warrants and trying to protect the interests of investors (even blind speculators) is a highly difficult regulation art.