Analysts believe that the probability of exercise of China Southern Airlines when the put expires is small
⊙ Our reporter Jianming
The hot trading of put warrants of China Southern Airlines triggered the enthusiasm of the securities traders for creation. According to the announcement, 12 negotiable securities A total of 1.372 billion China Southern Airlines warrants created by the company will take effect today, which also sets a new record for the number of single warrants created in a single day.
China Southern Airlines' put warrants, as the consideration of share reform, landed in Shanghai Stock Exchange on June 21, with the number of 1.4 billion. The China Southern Airlines Warrant is a European put with a term of one year, an exercise price of 7.43 yuan, and an exercise ratio of 0.5:1, that is, two warrants correspond to one positive share. As one of the few low price warrants on the market at present, the put of China Southern Airlines has been pursued by a large number of speculative funds since its listing. In three trading days, China Southern Airlines put out three consecutive limits. As of the close of yesterday, the warrant had reported 2.085 yuan, up 374% from the opening reference price on the first day of listing, with a premium rate of 60.77%.
This time, a total of 12 brokers participated in the first creation of China Southern Airlines' put warrants, with a total of 1.372 billion, which also broke the previous record of 1.227 billion put warrants set by CMB in a single day. Based on the closing price of China Southern Airlines yesterday, the circulation of all these warrants requires about 2.8 billion yuan of capital. China Merchants Securities ranked first with 420 million securities companies, while Hongta, Everbright, Guangfa, Changjiang, Huatai, Donghai and other companies all reached or exceeded 100 million.
Relevant analysts believe that, in terms of the fundamentals of China Southern Airlines at present, the probability of China Southern Airlines to exercise when the put expires is small. At present, the market volatility is increasing, and the warrant can be used as a risk hedging tool. If the put price of China Southern Airlines is lower than 0.6 yuan, investors can increase their holdings of the warrant, and the price within this range is reasonable. If the put price of China Southern Airlines is more than 1 yuan, investors are advised to gradually reduce their holdings. The higher the price above this range, the greater the risk. The creation of a large number of securities companies will also play a great role in promoting the suppression of excessive speculation in warrants.
