News from our newspaper: "When warrant issuers do their part to attract more investors and build brands, it is also a time for the warrant market to flourish." At a lecture on financial derivatives held last weekend, Weng Shiquan, director of the retail derivatives department of BNP Paribas, said in an interview with reporters that Hong Kong's experience in this area is absolutely worthy of reference for the mainland warrant market.
Weng Shiquan introduced that the Hong Kong warrant market eight years ago is similar to the mainland warrant market now, but since the implementation of the new warrant system, namely the dealer system, the issuance mechanism and trading rules of the Hong Kong warrant market are quite different from the mainland warrant market. At present, the daily trading volume of the Hong Kong warrant market has reached about 35 billion Hong Kong dollars, accounting for more than 20% of the daily trading volume of the entire Hong Kong stock market. There are more than 3000 types of warrants traded, forming a huge and mature warrant market, and becoming an indispensable part of the entire Hong Kong financial derivatives market.
He believed that there was no circulation provider for warrants in the Mainland, nor was there any forced requirement for issuers to provide circulation. Due to the T+0 system and cheaper transaction fees of mainland warrants, the transaction costs have been reduced and a large number of speculative funds have been attracted to enter the market. The prices of the warrant trading board and the call and put warrants have simultaneously risen with the stock prices of regular stocks, which reflects the irrational speculation in the mainland warrant market. To curb the crazy speculation, the current system of the Hong Kong warrant market is worth learning from the mainland. (Cheng Xinghuan)
