Han Zhiguo said the put warrant of China Southern Airlines is a huge trap

Recently, the put warrants of China Southern Airlines attracted the attention of the academic and investment circles. Han Zhiguo, an economist and stock market expert, expressed his views on this matter.

Q: Mr. Han, what do you think of the attention paid by academia and investors to the creation of China Southern Airlines put warrants?

A: The put warrant of China Southern Airlines is a huge trap!

Q: A huge trap?

A: Not only China Southern Airlines warrants, but all put warrants are a huge trap. Isn't it a huge trap for retail investors to engage in put warrants in a bull market? China's retail investors are immature, and China Southern Airlines' warrants have caught up with the turning point of the market Salt lake potash fertilizer 's put warrants are purely deceiving ordinary people and individual investors. Get a put warrant in a bull market. This is a major mistake. It has no value. It should not be created. You should also create this kind of warrant. After the introduction of this warrant, retail investors followed suit after someone speculated at the beginning, so that securities dealers can create unlimited warrants.

First, securities companies are created in unlimited quantities, and there is no need to close positions or buy back, which is a major trap. It is necessary to close the position when doing futures, but the securities dealers cannot close the position. Isn't it a complete act of money grabbing?

Q: However, securities companies also cancel their accounts.

Answer: Cancellation is automatic. It is only cancelled when you judge that it is risky. It is not requested by securities companies themselves.

Q: Warrant analysts said that cancellation is also a repurchase process.

A: He has to buy it back to cancel it.

Q: It was bought back. For example, three yuan was sent out and one yuan was bought back. Of course, this price is just something I said casually.

A: Brokers can buy it back at the last step, and there are no rules that require them to buy it back.

Q: Since that is the case, why do securities companies buy them back?

A: He doesn't need to buy it back now. He doesn't need to buy it back even when he closes his position. This is a great injustice, a public plunder of retail investors, and a shameless act of stealing money. This is the management's connivance of big institutions to rob small retail investors. Of course, there are some people in it.

However, if you think about how many retail investors have lost their money, tens and tens of billions have disappeared. It is absolutely wrong not to close positions and not write off. The previous paragraph said that there is "Yizhuang" in the put warrant of Salt Lake Potash Fertilizer, which is nonsense. What is "Yizhuang"? It was the management that asked him to buy it at ten cents, and whoever created it would buy it. Don't make a zero, so that retail investors won't lose completely. He set up a "Yizhuang" to stir up on the Internet, and then the management said that there was no problem. Of course, there is no problem. You asked him to buy it back. How could there be a problem? Who was asked to create it, and who bought it back with ten cents? This is too unfair.

Q: Now, investors focus on the question that the initial issue of China Southern Airlines put warrants was the consideration of China Southern Airlines' share reform, but later, the number of put warrants created was far more than that, which changed the trading conditions promised during the share reform. What do you think? Because according to your opinion, put warrants should not be created at all.

Answer: The share reform does not necessarily require the creation of put warrants. Some regulations do not, and some regulations do, but China Southern Airlines can. What is the total capital stock of China Southern Airlines? Has created more than 12 billion warrants? Can I exercise my rights? This is a joke. In addition, brokers have a large amount of funds, and retail investors cannot match him.

If you want to be able to control, retail investors can also create, let everyone create, why only let securities companies create, not allow others to create? Why can some people and others can't? This is the most unfair rule of China's stock market. The unfairness of warrant creation is a concentrated reflection of the unfairness of China's stock market. The warrant is absurd and shameless. (Author: Li Mingyu)