The five trading days from December 11 to December 17 are the exercise period of the "Sinochem CWB1" warrants. During this period, Sinochem warrants stopped trading, but its regular shares Sinochem International The transaction is still normal. After the termination of the exercise of Sinochem warrants (i.e. from 15:00 on December 17, 2007), the Sinochem warrants that have not yet been exercised will be cancelled, and at that time the warrants will have no value. At present, Sinochem warrants have stopped trading, with the exercise price of 6.52 yuan/share and the exercise ratio of 1:1.
Within 5 trading days during the exercise period, every investor holding a "Sinochem CWB1" warrant has the right to subscribe for a share of Sinochem International's shares The shares obtained through successful exercise can be listed and traded on the next trading day. To judge whether investors holding Sinochem warrants choose to exercise, we can consider both income and risk.
1. Compare the cost of investors abandoning exercise with the benefit of choosing exercise:
Since the Sinochem warrants that have not been exercised upon expiration will be cancelled, investors who give up exercising will not receive any compensation. For investors holding Sinochem warrants, the cost of giving up exercising is the price at which investors buy Sinochem warrants, that is, profit and loss=(- the purchase price of warrants). The profit and loss of the investor's choice of exercise=(positive share price - exercise price - warrant purchase price - transaction cost). The closing price of Sinochem International on December 10 was 20.10 yuan, far exceeding the exercise price of Sinochem warrants by 6.52 yuan. Therefore, the gains and losses of investors' choice of exercise were far greater than those of abandoning exercise.
2. From the perspective of risk:
In the calculation formula of exercise profit and loss, for investors, the exercise price (6.52 yuan), the purchase price of warrants (different for each investor) and the transaction cost (i.e. commission) are known, and the only unknown is the price of Sinochem International's regular shares. In addition, since the positive shares obtained can only be sold on the next trading day after the successful exercise, it is also necessary to bear the risk of fluctuations in the positive shares during the period. However, since the positive shares are far higher than the exercise price, their selling price will be higher than the exercise price.
To sum up, for investors who have entered the exercise period and still hold Sinochem warrants, whatever the cost of obtaining the warrants at the beginning, what they can do now should be to exercise early so as not to miss the exercise opportunity and cause losses.
Investors should also pay attention to the details of exercise operation. To exercise 1000 Sinochem CWB1 (580011) shares, investors must prepare 6520 yuan (exercise price 6.52 yuan * 1000 shares) of available funds in their accounts, as well as a certain amount of share transfer fees and commissions, and then conduct the following operations in the trading software: "buy" (the direction of the consignor) - "582011" (exercise code) - "1000" (quantity).
Investors should be reminded that in the exercise operation, SSE adopts the "buy+exercise code" mode, while Shenzhen Stock Exchange adopts the "execute the" exercise "button on the trading software" mode. Sinochem CWB1 is a warrant listed on the SSE for trading, but it does not exclude that some securities companies may integrate the exercise function of the trading software. Therefore, investors should also consult the account opening securities companies to ensure the success of the exercise.
( citic securities )
