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Brokers created non-stop WISCO warrants and added 198.5 million


http://finance.sina.com.cn 03:18, November 30, 2005 Shanghai Securities News Online

Securities

Reporter Ye Zhan

Creation continues. Today, another 198.5 million WISCO warrants created by six securities companies will be put on the market, about 40 million more than the number created yesterday. As a result, the total flow of WISCO warrants has reached nearly 830 million.

The securities companies established this time include Guoyuan, Guoxin, Guotai Jun'an, Guangfa, Huatai and Haitong, among which Guotaijun
An, GF, Huatai and Haitong have created warrants for the second time. Although Guosen Securities was established for the first time, it created 139 million shares at one time, far ahead of all securities companies.

So far, 355 million WISCO call warrants and 1226 million WISCO put warrants have been created. If the cost of each G WISCO is 2.8 yuan, the securities companies have used about 4.8 billion yuan to create guarantees.

Industry insiders believe that the creation of WISCO warrants has been two consecutive days, indicating that the creation strategy of securities companies has been adjusted. In terms of put warrants, the number of securities companies created is very large, resulting in the continuous decline of WISCO's put warrants and few purchases, and securities companies can not really realize profits; In terms of warrants, securities companies have changed to the method of small batch continuous creation, which can instead obtain more income.

It is reported that the 157 million creation warrants listed yesterday have basically been sold by securities companies. According to the average price of 1.352 yuan, the cash recovered by securities companies is about 210 million yuan. If this fund is used to buy G WISCO for creation, about 75 million warrants can be created.

The stabilizing effect of the creation on the price of warrants continued to appear. Yesterday, all three warrants of WISCO subscription, put and Baosteel subscription fell. The put warrants of Wuhan Iron and Steel Group fell by a daily limit of 23.36% to close at 1.148 yuan; The warrant of WISCO closed at 1.254 yuan, down 8.33%; Baosteel warrant closed at 1.493 yuan, down 7.44%.

Under the influence of the creation system, the speculative atmosphere of warrants has significantly weakened. In only two trading days this week, the cumulative decline of Baosteel subscription, WISCO subscription and WISCO put warrants has reached 23.59%, 17.6% and 38.27% respectively. Industry insiders believe that with the continuous establishment, the price of warrants is expected to fall further until it returns to a rational area, and investors should still pay attention to risks at present.

Listed today, newly created WISCO warrant

Number of companies (copies) Listing date

Guoyuan

negotiable securities 15085002005-11-30

Guosen Securities 1390000002005-11-30

Guotai Jun'an 80000002005-1-30

GF Securities 10000002005-11-30

Huatai Securities 300000002005-11-30

Haitong Securities 10000002005-11-30


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