Gan Jian
Warrant products that have existed in overseas markets for nearly a hundred years landed in the mainland securities market with the share reform on August 22, 2005. However, the recurrence of intra day turnaround trading (commonly known as T+0) has made it common for the daily turnover rate of warrants to exceed 100%, which makes the trading of warrants labeled as speculation or even gambling.
On December 6, 2005, the warrant transaction reached a peak - the transaction amount was 10.18 billion yuan, which was not a big deal later, but was written into history on that day - because the transaction amount of only six warrants traded in the market exceeded the total transaction amount of more than 1400 A-shares in the two markets. This not only triggered a debate on the high speculation of warrants, which is no different from gambling, but also raised concerns about whether the A-share market funds will be diverted.
This concern of the latter has proved to be unfounded. With the recovery of the market, the transaction amount and stock index of A-shares in the two cities have risen at the same time. The highest daily transaction volume ever reached more than 400 billion yuan this year. However, the warrants still exist and the transaction is still stable. According to the statistics of the Shanghai Stock Exchange, as of June 29 this year, the annual transaction amount of warrants was 2.28 trillion yuan, and the daily average transaction amount was 19.62 billion yuan. However, the view that warrant trading is similar to gambling is still lingering, especially the "doomsday round" phenomenon that has been constantly emerging before, that is, the expiring warrants, although belonging to worthless out of price warrants, continue to be sought after by the market, further deepening this impression.
We believe that it is necessary to give warrants a more comprehensive understanding.
Warrant products were born and prospered with the share reform, enriched the means of consideration payment at the critical moment of the share reform, promoted the share reform to break through the bottleneck, and at the same time, enlivened the market atmosphere when the market trading and investment were light, and made the market bigger and stronger negotiable securities The company has provided new financial instruments, which is the biggest contribution of warrants to the market.
The launch of warrant products provides a good tool for stabilizing the market, and the function of value discovery is constantly reflected. For investors, when the warrant is close to or lower than the theoretical price, buying and holding the warrant to exercise at maturity can achieve the goal of locking the cost of position building. In fact, many institutional investors talked about the case of using warrant portfolio to lock in the cost of position building and diversify portfolio risk in their communication with our reporter.
As a highly leveraged derivative, the volatility of warrants must be much higher than shares The trading mode of T+0 also attracts a large number of investors who aim to win short-term interest margin, which is also the reason why the turnover rate of warrants remains high. However, due to the existence of these traders, the warrant market can ensure sufficient liquidity, which is also the basis for the smooth realization of hedging and risk management.
Needless to say, the crazy performance of warrants in the "emerging and transitional" mainland market exceeded many people's psychological expectations, including many illegal behaviors. Therefore, strengthening supervision, strengthening investor education in many aspects and balancing supply and demand are the key to curb excessive speculation in warrants and maintain the normal trading order of warrants.
We also saw that the Shanghai Stock Exchange issued a ticket to restrict the trading of some accounts for their abnormal behavior in warrant trading, and the Shenzhen Stock Exchange also implemented an intraday emergency suspension for warrants with obvious intraday changes. The introduction of this series of regulatory measures has effectively purified market transactions, making a wider range of investors from losses.
However, strengthening supervision is only one aspect of maintaining market order, and the more important aspect is investor education, which is the basis for the healthy and stable development of warrant products. As a regulator, it is indispensable for the media to shoulder this responsibility, and the brokerage as an intermediary is also duty bound. While enjoying a large amount of commissions brought by the bull market of warrants, how to protect the market, reveal risks to investors, popularize warrant knowledge, and cultivate stable trading groups is the long-term benefit of the entire industry.
In terms of the balance between supply and demand of warrants, the role played by the creation of securities companies is obvious to all. Like the continuous issuance and free issuance mechanism of warrants in overseas mature markets, the creation mechanism can achieve the effect of automatically balancing supply and demand. However, with the gradual expiration of share reform warrants and the market's desire for warrant trading, the introduction of covered warrants should be expected from the experience created by securities companies.
As an emerging financial instrument, warrants need efforts from all sides to make it stable, healthy and sustainable. Mainland China, which is just starting capital market There are still more financial innovation products to go. Widespread knowledge, solid foundation of participants, and rich experience of regulators are long-term topics at all levels of the market.
