Magang Warrant is its underlying stock Masteel Its exercise value depends on the performance of Maanshan Iron and Steel's share price at the time of exercise, so the trend of Maanshan Iron and Steel's regular shares directly determines the trend of Maanshan Iron and Steel's warrants. Due to the lower than expected performance of Magang in the third quarter, various institutions have lowered their target prices for Magang shares, which has caused the recent trend of Magang positive shares to continue to be weak. From October 17 to November 7 this year, Magang shares fell 26.8% in total. Affected by this, Maanshan Iron and Steel Warrants also fell all the way, falling for 13 days in 16 trading days in the same period, with a cumulative decline of 30.26%. As the decline of warrants is relatively small compared with positive shares, the negative premium of Maanshan Iron and Steel's warrants has decreased from - 13.74% to - 4.29%.
Maanshan Iron and Steel Warrants will enter the first exercise period on November 15. Due to the expectation of exercise arbitrage, the negative premium rate of Maanshan Iron and Steel Warrants may further narrow or even become a positive premium before the exercise period. Considering that Maanshan Iron and Steel Co., Ltd. has two exercise periods, even if the investor does not exercise this time, there will be another exercise opportunity one year later. Since Ma Gang's warrants will stop trading during the exercise period, investors who hold warrants during the exercise period can have two options: one is to exercise to obtain regular shares; Second, continue to hold warrants. Investors who are optimistic about Masteel's regular shares can continue to hold warrants to obtain the time value of warrants; Investors who are bearish on the recent trend of Maanshan Iron and Steel Co., Ltd. can increase liquidity and avoid market risks by exchanging shares for equity through exercise.
Investors should be reminded that since Ma Gang warrants are equity warrants, they will have a dilution effect after the first exercise, which may have a certain impact on the trend of positive shares. As the first exercise period approaches, investors should actively pay attention to the market and relevant information and make preparations in advance. Investors who intend to exercise should pay attention to the details of the exercise operation to ensure the successful exercise. The exercise method is as follows:
If investors need to exercise 1000 pieces of Maanshan Iron and Steel CWB1 (580010), they must have 3330 yuan (exercise price 3.33 yuan * 1000 pieces) of available funds in the guaranteed capital account, and then carry out the following operations in the trading software: "buy" (the entrusting direction) - "582010" (the exercise code) - "1000" (the quantity).
( citic securities ）
