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Material Vanke warrants will not be created


http://finance.sina.com.cn 01:12, December 8, 2005 Oriental Morning Post

Lei Lei, editor in charge of Morning Post Shenzhen

The creation of Shenzhen Stock Exchange warrants is the focus of the current market. Sources revealed yesterday that Vanke( information quotation forum )(00000 2) has applied for postponing the creation of its warrants, which is very likely to be approved. At the same time, Shenzhen Stock Exchange is improving the relevant system of warrants, and it is expected that the establishment of Shenzhen Stock Exchange warrants will be delayed.

The insider told the reporter that Vanke's application for postponing the creation of warrants had been submitted to Shenzhen Stock Exchange long before the introduction of the warrant creation system in Shenzhen Stock Exchange. The person said that Vanke has two reasons: on the one hand, the total number of Vanke warrants has reached 80% of the company's total outstanding share capital, which is too large and has too many warrants to be re created; On the other hand, the main content of Vanke's consideration plan for share reform is put warrants. If new warrants are launched, it will devalue the share reform consideration obtained by shareholders of tradable shares.

A person close to the Shenzhen Stock Exchange told the reporter that up to now, the Shenzhen Stock Exchange has not officially replied to Vanke's application, but the person said that, considering the overall situation of promoting share reform, it is very likely not to create Vanke warrants for the time being. He also said that, for the sake of prudence, Shenzhen Stock Exchange is improving the detailed rules related to warrants, and it is expected that the establishment of warrants in Shenzhen Stock Exchange will be postponed.

At the same time, a person concerned with an innovative securities firm said that Shenzhen Stock Exchange has not given a clear notice to the securities firm to postpone the creation of warrants, but it is expected that the creation of warrants in Shenzhen Stock Exchange will not be as crowded as Shanghai Stock Exchange, but will grasp the pace and number of warrants.

He said that at present

Ansteel Most of the securities traders are interested in warrants, but whether all of them have been approved remains to be further announced by Shenzhen Stock Exchange. "Shenzhen Stock Exchange will learn from the relevant experience of Shanghai Stock Exchange and Hong Kong market, and will not suddenly open the gate, resulting in passive management or a huge impact on the market. It is believed that Vanke warrants are more likely not to be created."


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