Sinopec's warrant transactions soared nine times
http://www.sina.com.cn 05:30, May 9, 2007 China Securities Journal
□ Macquarie Securities (Asia) Limited
The mainland A-share market resumed yesterday with a strong rise, but Hong Kong shares did not benefit. After the HSI broke through 21000 on Monday, it fell back again and again yesterday, closing down 0.9%, and the national index also fell 0.5%, but the decline was lower than that of the HSI. Real estate stocks that had risen for several days gave up obviously yesterday, and the land sales performance was lower than expected.
In terms of market transactions, it decreased from Monday to less than HK $60 billion, while warrant transactions fell back to HK $11 billion yesterday after returning to the level of HK $13 billion on Monday, accounting for 19% of market transactions, not much different from Monday.
After a round of sharp rise, PetroChina shares continued to soften yesterday, and the transaction of related warrants decreased significantly, failing to maintain the position of the most active single share warrants (excluding HSI warrants). Instead, shares of the same type SINOPEC (China Petrochemical Corporation Warrants took over, and the turnover jumped nine times to HK $1.47 billion, a rare leap to the top of the single share warrant transaction, compared with China Life The transaction of warrants is even higher. Sinopec rose 3.6% at the highest level yesterday, approaching the previous high of HK $7.47, but the increase narrowed later, closing at HK $7.19, up 0.6% slightly.
The actively traded Sinopec warrants are concentrated in subscription warrants, most of which are priced out of the price, that is, the exercise price is higher than or close to the stock price of the regular shares, while the term is short to medium term, and the time value is lost quickly.
Five warrants were traded on May 8
Relevant assets accounted for the transaction amount of warrants
(%) (100 million Hong Kong dollars)
Hang Seng Index 34.0 37.6
Sinopec 13.3 14.7
China Life 12.5 13.9
HSBC Holdings 6.67.3
PetroChina 5.96.5
Source: Macquarie negotiable securities (Asia) and Reuters
