The overall valuation of put warrants is too high, and attention should be paid to risks

Ping An Securities Zhang Junjie

The market rose moderately yesterday, and the trading volume of the two cities continued to expand. Subscription of regular shares OCT A Except for a slight drop of 0.31%, the rest closed in red, with an average increase of 3.53%, Sinochem International It is also the closing limit. Put positive shares except Hunan Valin Suspension Shanghai Airport Except for slight decline, the rest rose to varying degrees, with an average increase of 2.34%. The average increase of call warrants reached 3.06%. Although most of the put warrants closed in red market, the general increase was not obvious. As the overall valuation of put warrants is too high, investors are reminded not to participate as much as possible.

Sinochem International ended up trading at the limit. Affected by this, Sinochem CWB1 finally ended up trading at the limit, up 22.82% throughout the day, becoming the most dazzling star in the warrant market yesterday. Sinochem International held 100 million shares of Bank of Communications, and Bank of Communications is going to be listed in A-share market. In addition, the company's fundamentals are good. Yesterday afternoon, Sinochem International quickly closed the limit, driving the rise of warrants.

Based on yesterday's closing price, Sinochem CWB1's effective leverage ratio is 1.47, and the actual increase of Sinochem's subscription is far greater than the increase calculated according to theory. What is the cause of this situation? We believe that the absolute price of Sinochem CWB1 is not high, and its leverage is obvious. Many investors who are optimistic about its regular shares tend to choose warrants to replace Sinochem International's regular shares, resulting in a large increase in demand for Sinochem CWB1. However, due to the small circulation of Sinochem CWB1, only 180 million shares, Sinochem CWB1's supply and demand are unbalanced, leading to a large increase. Although the premium rate of Sinochem CWB1 is as high as 31.70%, which is the highest among all subscription certificates

In addition, it is worth mentioning that although the four steel stocks rose yesterday, the corresponding warrants performed poorly. as Handan Steel Up 3.90%, while Hangang JTB1 But dropped by 7.64%, Baotou Steel A slight increase of 0.55%, while its warrant Baotou Steel JTB1 However, it fell by 4.71%, and the performance of the other two steel subscription certificates was not as good as that of the regular shares. We believe that this is mainly due to the large increase in the early period of the steel warrant, and it is not the hot spot of the market yesterday. Some warrant investors choose to take profits by taking advantage of the rise of the positive shares. However, with the rise of regular shares and the decline of warrants, the premium rate of the four steel warrants was lower than that of the previous trading day. The premium rate of Hangang JTB1 even dropped from 7.94% on Monday to -0.32% yesterday, which still deserves the attention of investors who are optimistic about the trend of regular shares.