Recently, put warrants have been wildly hyped, but they have also been created in unlimited quantities. For example, China Southern Airlines JTP1 has created 2.772 billion shares in total, which has greatly exceeded the number of its tradable regular shares by 1 billion shares. According to the exercise ratio of 1:0.5, the current total number of China Southern Airlines JTP1 is 4.172 billion shares, and the corresponding positive shares should be 2.086 billion shares, while the number of China Southern Airlines positive shares that can be circulated is only 1 billion shares, and the number of warrants is seriously mismatched with the number of positive shares.
In the eyes of some people, this situation may not be a matter, they think that as long as we can put an end to this hype. Actually not. It is natural that investors should bear their own investment risks and be responsible for their own profits and losses. However, if some institutions create unlimited put warrants regardless of the actual situation, it may cause such consequences: when China Southern Airlines JTP1 has the exercise value, investors cannot buy its corresponding regular shares. Of course, brokers may pull China Southern Airlines above the exercise price, making it impossible for the holders to exercise their rights. However, at this time, securities companies may be on the illegal road.
In addition, some securities companies created 420 million shares of China Southern Airlines JTP1 at one time, which is close to 10% of the number of China Southern Airlines' regular shares shares When the amount reaches 5%, there must be a conflict of announcements. Because the exercise of investors is completed in a relatively short time, it is impossible for securities companies to make timely announcements, which will obviously violate the Securities Law. Is this a problem? In order to put out a small fire, we can't blow up an 18 storey building blocking the fire passage (that is, solve the problem by destroying the fairness of laws and regulations)?
On the one hand, the regulatory authorities have the responsibility to curb the crazy speculation of put warrants, but on the other hand, the excessive creation of warrants should also be limited. We suggest that the creation of warrants should be limited to the number of outstanding shares. (Peng Cheng）
