Author of the report: Deng Eryong Date of writing: December 15, 2008, a new low in trading or a turning point: the average daily trading volume of the warrant market this week was RMB 20.02 billion, which was far lower than the average trading level since the beginning of the year. Due to the expected increase of the market and the existence of hot spots, the substitution effect of warrant funds by the A-share market is very strong, resulting in very small fluctuations in the warrant market; The average daily turnover rate of warrants is 92.91%, which is also far behind the annual average turnover rate.

At present, although the trend judgment of A-share market is not obvious, the policy side is warm and frequent, so the market is expected to rise more strongly, leading to the A-share market is still the first place for funds inside and outside the market. However, we believe that this situation will change in the short term. The cumulative increase of positive shares and the property of capital pursuing safety margin will bring some trading opportunities for short-term warrants.

One week investment strategy: focus on Jiangxi Copper CWB1 and Petrochemical CWB1; Waiting for the cumulative rise effect of positive shares.

1: This week will be the most important time window for patiently waiting for the cumulative increase effect of warrants on positive shares; 2: The tradable varieties of warrants give priority to Jiangxi Copper CWB1 and Sinopec CWB1.