News from our correspondent As a blue chip company in A+H market that is issued at the same price and listed at the same time, ICBC's A shares have always maintained a certain discount to H shares since its listing. Previously, Bank of China After returning to the A-share market from the H-share market, there was also a discount of A-share to H-share. Experts believe that there may be many reasons for this phenomenon, among which securities institutions have issued a considerable number of covered warrants for ICBC and BOC's H shares, which may be a more important reason. The insiders called for the A-share market to launch covered warrants as soon as possible.
It is reported that on the first day of listing of ICBC in Hong Kong, a number of institutions issued 29 ICBC warrants, most of which were call warrants, and were listed and traded on the same day. On the same day, the Singapore market also issued a certain number of ICBC warrants. As of yesterday, there were 22 warrants linked to ICBC in the Hong Kong market and 80 BOC warrants. These figures do not include the relevant warrants in the Singapore market.
Experts pointed out that if relevant banks or securities companies want to issue covered warrants, they need to purchase a certain amount of underlying securities according to the design scheme of the warrants to meet the needs of warrant holders for exercise at maturity or hedge the risk of exercise at maturity. This will certainly promote the market's demand for underlying stocks and improve the trading volume and price discovery ability of underlying stocks, which may be one of the reasons for the discount of state-owned enterprises such as ICBC and BOC A shares to H shares. At the same time, experts said that this phenomenon also shows that the securities market needs covered warrants and other derivatives.
How to select the underlying securities of the first covered warrant? In accordance with the Interim Measures for the Administration of Warrants of the Shanghai and Shenzhen Stock Exchanges, the underlying securities for the issuance of warrants shall meet certain conditions, that is, the market value of the outstanding shares in the last 20 trading days shall not be less than 3 billion yuan; The cumulative turnover rate of stock trading in the last 60 trading days is more than 25%; The circulating share capital shall not be less than 300 million shares. Accordingly, only large blue chip companies are likely to become the underlying stocks of covered warrants.
Analysts believe that super large cap stocks such as ICBC and BOC are likely to be the first choice. However, from the previous public statements of SSE, ETF, especially SSE 50ETF, is an ideal underlying security, which is very suitable in terms of investment, risk control and avoiding manipulation. Its functions and competitive power They are similar to stock index futures and will be welcomed by the market.
