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Zhu Yong, Managing Director of CICC: Without self support, it is impossible to create warrants
Ha Jiming, the chief economist of CICC, explained yesterday: "CICC would rather serve institutional investors such as funds as an intermediary broker than use its own money (to do the market). Although it will not do the put warrants of WISCO now, it may do the warrant business in the future, just as there is no self operation now and there may be self operation in the future."
Reporter Lu Yuan from Beijing
Out of the 13 innovative pilot brokers with the qualification for creation, 12 have created WISCO put or call warrants, and only China International Finance Corporation (hereinafter referred to as "CICC") has stood still.
According to Article 1 of the Notice on Matters Related to the Creation of WISCO Warrants by Securities Companies (hereinafter referred to as the "Notice") of Shanghai Stock Exchange, securities companies that have obtained the qualification of China Securities Association for pilot innovation activities may create warrants in accordance with the provisions of this Notice.
If the warrant is created, the founder shall open a special account for warrant creation and a special account for performance guarantee securities in China Securities Depository and Clearing Co., Ltd. Shanghai Branch, and deposit the shares of WISCO in full in the special account for performance guarantee securities for the purpose of guarantee for exercise and performance. The special account for warrant creation and the special account for performance guarantee securities shall be designated at the same seat.
Zhu Yong, the general manager of CICC and the general manager of the asset management department, said to the First Business Daily yesterday: "CICC has no proprietary business, so it is not suitable to create warrants." CICC is a joint venture securities company, and has not obtained the authority of the CSRC to release proprietary business.
Although the issuance of call warrants requires the purchase of regular shares and involves self operation, why does CICC not choose to issue put warrants? According to Article 3 of the Notice, if a put warrant is created, the creator shall open a special account for warrant creation and a special account for performance guarantee fund in CSDCC Shanghai Branch, and deposit cash in the special account for performance guarantee fund in full for the exercise and performance guarantee.
Ha Jiming, the chief economist of CICC, explained to China Business News yesterday: "CICC would rather serve institutional investors such as funds as an intermediary broker than use its own money (to do the market). Although it will not do the put warrants of WISCO now, it may do the warrant business in the future, just as it does not have its own business now and may do it in the future."
He said that Non tradable shares On the premise of reform, as a large securities firm that is the main competitor of large foreign investment banks, CICC still focuses on overseas IPO, secondary market bond business, customer brokerage business, such as China Construction Bank (0939. HK), Shenhua Group (1088. HK) and Dongfeng Motor's overseas listing business.
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