BNP Paribas said the time has come for the mainland to intensify efforts to develop financial derivatives
Investors who are familiar with Hong Kong warrants will not be unfamiliar with the word "France and Pakistan". In just one year, France and Pakistan (BNP Paribas) jumped from 1% to 10% in the Hong Kong market, becoming the leading enterprise in the Hong Kong market, accounting for about half of the daily average trading volume of the Hong Kong stock market.
As one of the most popular trading varieties in the Hong Kong stock market, it has also attracted more and more attention from mainland investors. Weng Shiquan, director of the retail derivatives department of BNP Paribas, said in an interview with this newspaper during his investment popularization speech in Guangzhou last weekend, "We don't know how keen QDII is on the wheel, because the warrant market can't know who the buyers and sellers are. I can only estimate from the number of times economic banks with Chinese investment background appear in the transaction. My estimate is that the funds from the mainland to participate in warrants have increased by 10 times compared with a year ago, but the participation ratio of retail investors and institutions is unknown. " It is reported that in October, the daily turnover of the Hong Kong market reached more than HK $38 billion, while there are more than 4000 in the market at present, and Weng Shiquan expects the number to rise to more than 5000 by the end of the year.
He believed that the participation of mainland investors in the trading of warrants in Hong Kong would definitely play a positive role in the development of the warrant market in the mainland. "It is important to have experience. There is no dealer based warrants in the mainland, so I think the risk of warrants in the mainland is too high and the irrational speculation is too fierce." Weng Shiquan said that the problem of the mainland warrant market stems from the market is not open, there is no way out for funds, and investor education is not mature. "I think the mainland stock market is actually quite mature, and investors have no problems - don't always think that this market is not mature, in fact, there are not many products for investors to choose, and there is no source of funds, so they can only hype unreasonably."
He said that the important condition for the future development of the mainland financial derivatives market is whether the rules are well established. "The reason why Hong Kong has developed so well is that in 2002, a very clear banker system was established. Once this excellent system is established, it will be OK. But it is necessary to maintain a relatively stable period of time for this market to develop slowly so that it can take off." Our reporter Tan Yibin
-Terminology
Hong Kong stock warrant dealer system
In January 2002, Hong Kong made a major reform on the market of the warrants. According to the system, the warrants market implemented the market maker system to ensure that the circulation volume would not become a problem. At the same time, the actual leverage and other standards were used to keep the pricing more transparent and prevent the warrants market from significantly deviating from the value of regular shares. The latter is a common phenomenon in the mainland warrant market this year.
