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All member units:
In order to control the risk of warrant trading and maintain the order of warrant market trading, in accordance with the Notice on Issuing the Shanghai Stock Exchange's Warrant Risk Disclosure Statement and the Notice on Matters Related to the Listing of Baosteel's Warrants, the Exchange reiterated that members and investors participating in warrant trading must sign the Warrant Risk Disclosure Statement, Relevant matters are further notified as follows.
1、 All members must introduce relevant business rules to investors who trade warrants for the first time in accordance with regulations, fully reveal the high risk of warrant trading, and earnestly guide and remind investors to pay attention to and control the risk of warrant trading.
2、 Each member can flexibly and effectively serve and sign the Warrant Risk Disclosure Statement to investors according to its own actual situation, so as to ensure that every investor participating in the trading of warrants for the first time fully understands the risks of warrants before trading.
3、 Each member shall take adequate risk control measures, restrict the trading of warrants of investors who have not signed the Warrant Risk Disclosure Statement, timely and comprehensively understand and master the signing of the Warrant Risk Disclosure Statement and the account opening information and capital situation of investors, and cooperate with the Exchange in taking relevant inquiry, investigation, on-site inspection and other regulatory measures.
4、 Each member shall reply to the member department of the Exchange in writing within one week from the date of receiving this notice, and feed back the signing of the Warrant Risk Disclosure Statement.
It is hereby notified.
Appendix: Warrant Risk Disclosure Statement
Shanghai negotiable securities exchange
August 24, 2005
enclosure
Warrant Risk Disclosure Statement
Warrants and shares Different from that, warrant trading has a financial leverage effect. Although investors have the opportunity to obtain greater returns at limited costs, they may also suffer full or huge losses in a short time. Before participating in warrant trading, investors should carefully assess their own economic conditions and financial capabilities, and fully consider whether it is appropriate to participate in such leveraged transactions. Before deciding to conduct warrant trading, investors should fully understand the following matters:
1、 Warrants have various risks associated with securities product exchanges.
2、 During the duration of the warrant, the price of the warrant and the price of its underlying securities affect each other. Investors should pay special attention to the impact of the price fluctuation of the underlying securities on the price of the warrant.
3、 The warrants are subject to T+0 transaction.
4、 Before the listing of warrants, the issuer shall determine the exercise price, exercise proportion, exercise date and other factors (the exercise price and exercise proportion of warrants will be adjusted with the ex right and ex dividend of the underlying securities). After the listing and trading of warrants, the price of warrants is vulnerable to various market factors such as market supply and demand.
5、 Before participating in the warrant transaction, investors should analyze and understand the performance ability of the warrant issuer, such as financial status, credit status, etc., and study the conditions and agreements for the issuance of warrants.
6、 When the warrant expires and there is no other performance value, the warrant will have no value. Investors should also pay attention to whether the agreed terms of the warrant include an automatic exercise mechanism. If there is no automatic exercise mechanism, investors should pay attention to timely exercise to avoid investment losses.
7、 When conducting warrant trading, investors must know whether their securities companies are qualified to engage in warrant trading brokerage services, or their trading qualifications may be partially or completely restricted, and make corresponding arrangements. The risk disclosure items in this risk disclosure statement are only listed in nature, and fail to list all risks of warrant trading and all factors that may affect the price of warrants in detail. Before participating in the warrant trading, investors should carefully read the warrant issuance prospectus and listing announcement, understand and master other factors that may affect the warrant trading or the warrant price, and be sure that they have made adequate risk assessment and financial arrangements to avoid unbearable losses due to participating in the warrant trading. (Source: Shanghai Securities News)
Sina statement: The content of this article is purely the author's personal view, only for investors' reference, and does not constitute investment advice. Investors operate accordingly at their own risk.
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