About 1227 million shares are approved for listing today, and the scale reaches one third of the current circulation volume
⊙ Our reporter Zhou Hong
China Merchants Bank put warrants will today usher in the largest wave of securities companies in history to establish a listing.
According to the announcement of the Shanghai Stock Exchange, a total of about 1227 million CMB put warrants created by 15 innovative securities companies were approved for listing today. The total scale of its listing will reach one-third of the current total circulation scale of CMB's put warrants. Calculated by 2.590 yuan/share of CMB warrants yesterday, the above warrants need 3.2 billion yuan of undertaking capital.
Among the securities firms participating in the creation of CMB warrants, Guotai Jun'an Securities has the highest creation scale, reaching 300 million shares. Everbright Securities created 182 million shares, Guosen Securities created 136 million shares, GF Securities created 91 million shares, and China Merchants Securities created 80 million shares, ranking first.
Market insiders believe that the joint creation of 15 securities companies indicates that the market mechanism is curbing the irrational speculation in the current warrant market. The creation of more than 600 million CMB warrants on Friday and Monday made the CMB warrants fall continuously on Monday and Tuesday. This mechanism will continue to work well in the future.
The market price of CMB put warrants closed at 2.590 yuan yesterday, down 6.9% from the previous trading day. The turnover rate on that day was 268.4%. The CMB put warrant will expire on September 1, 2007. At present, the connotation value of the warrant is zero.
Tianliang created the "fire extinguishing" CMB warrant
Reporter Zhou Hong
The hot speculation in the warrant market began to encounter large-scale sniping created by securities companies.
According to the latest announcement of Shanghai Stock Exchange. On June 20, a total of about 1227 million CMB put warrants created by 15 innovative securities companies were approved for listing, and their total listing scale exceeded one third of the current market circulation of CMB put warrants. Based on yesterday's closing price, it is estimated that the secondary market needs 3.2 billion yuan to undertake capital today.
The above large-scale establishment also broke the historical record of the establishment scale of warrants at one stroke. In November 2005, 10 securities companies were allowed to create 1.127 billion put warrants in one day, which shocked the market. Now, this scale has been refreshed by 15 innovative securities companies.
Creation vies with each other
According to the relevant creation announcement, the securities firms with the largest scale of CMB put warrants were Guotai Jun'an Securities, Everbright Securities, Guosen Securities, Guangfa Securities, China Merchants Securities, Haitong Securities and Haitong Securities, respectively, 300 million, 182 million, 136 million, 91 million, 80 million and 73 million, respectively, Hongyuan Securities 72 million, Huatai Securities 50 million and Donghai Securities 50 million.
In 2005, Everbright Securities created 150 million shares, Haitong Securities created 77 million shares, Guosen Securities created 100 million shares, GF Securities created 300 million shares, Donghai Securities created 54 million shares, CITIC Securities created 100 million shares, Huatai Securities created 70 million shares, Changjiang Securities created 200 million shares, Guotai Jun'an created 63 million shares, Guoyuan Securities created 13 million shares.
Abundant creativity
It is reported that the above warrant creation did not fully tap the potential of innovative securities firms. On the contrary, due to the transfer of new share subscription funds and other reasons, the funds of a considerable number of innovative securities companies are occupied to varying degrees, and it is expected that further creation will occur in the future.
At present, the expiration time of CMB's put warrants is still more than 2 months. The exercise price at maturity is 5.48 yuan/share, which is far from the current price of 24 yuan. This means that unless China Merchants Bank's share price falls by 80% in the next two months, the intrinsic value of the above warrants will be zero. In the current market situation, the possibility of CMB falling 80% is zero.
Because of this, for relevant securities companies, as long as the created warrants can be sold in the secondary market, most of them are net profits (excluding a small amount of capital occupation costs). The incentive for securities companies to create is also very sufficient.
Unreasonable hype of sword fingers
The creation of a large number of securities companies is the reaction of the market mechanism to the high premium of warrants. According to statistics, since June, more than 600 million CMB put warrants have been created by a number of securities companies, which undoubtedly played a great role in curbing the overvalued price of put warrants. The launch of 1227 million warrants undoubtedly played an important role in combating the irrational market speculation.
Xu Ning, an analyst of Huatai Securities, said in an interview earlier that the following three measures could be taken to deal with the current situation of hot speculation in the warrant market: first, investors should strengthen education, publicize the risks of speculative put warrants, and let investors take precautions. Second, we should further improve the cancellation mechanism for the creation of warrants, curb malicious speculation and squeeze unreasonable warrant price bubbles. Third, we should launch covered warrants as early as possible, increase the supply of warrants in the market, and enrich investment varieties to meet the needs of different investors. At present, the first two methods have been fully applied and are showing their effects.
