□ Our reporter Jianming
"Although warrants appear to be a zero sum game, in fact, the issuer of covered warrants is not gambling with investors", said Li Jin, director of the derivatives department of the Hong Kong company of Foxconn Securities at the "China Warrants Elite Forum" held recently by GF Securities and the world's largest warrant issuer, Foxconn Securities.
Li Jin said that in fact, the issuer of covered warrants only acted as an intermediary and would not do directional transactions. When issuing warrants in the warrant market, the issuer will buy various instruments in the derivatives market for hedging, such as over-the-counter options, high interest notes/interest certificates, structured products, listed options/futures, other warrants, stocks, etc. The profit source of the warrant issuer is mainly from the difference in product volatility. The relationship between warrant issuers and investors is like a partner. Professional warrant issuers should maintain market circulation and stable extension amplitude. Li Jin also stressed that derivatives cannot be judged simply by good or bad, but mainly depends on how investors use them to speculate, invest or avoid risks.
With the mainland negotiable securities With the development of the market, various derivatives have gradually emerged, and covered warrants issued by intermediaries rather than major shareholders have become one of the new products expected by the market. On the other hand, many mainland investors are still weak in risk awareness and lack sufficient investment experience. In this case, GF Securities and Faxing Securities jointly held this forum. Chen Liyan, Senior Vice President of Derivatives Department of Faxing Securities, and Guo Yong, Chief Strategic Analyst of Product Innovation Department of GF Securities also introduced investment experience in domestic and overseas warrant markets at the meeting.
