Warrant is a kind of securities. After paying premium, investors have the right to purchase or sell the underlying securities from the issuer at the agreed price during a specific period or at a specific time point.
At present, only "China Southern JTP1" of the 14 warrants in the market is European style, that is, the exercise period is a specific day, and the rest 13 warrants are Bermuda style, that is, investors can choose a time to exercise before the expiration. Each warrant has a duration, usually 6 months to 2 years. After the duration, the warrant is worthless. At present, except that "China Southern JTP1" is cash settlement, investors are required to actively declare the exercise of the other 13 warrants during the exercise period. Therefore, warrant investors must actively exercise valuable warrants within the exercise period of warrants to avoid unnecessary losses. However, for warrants that are seriously out of price, investors should not exercise to avoid additional losses.
"Sinochem CWB1" entered the exercise period on December 11 and ended on December 17. The adjusted exercise price of "Sinochem CWB1" is 6.52yuan/share, and the exercise ratio is 1:1, that is, every investor holding a "Sinochem CWB1" warrant has the right to subscribe for one share at the price of 6.52yuan/share in five trading days from December 11 to December 17, 2007 Sinochem International shares (Code: 600500), the shares obtained through successful exercise can be listed and traded on the next trading day.
As of the closing of December 12, the closing price of China International (code: 600500) was 19.95 yuan/share. "Sinochem CWB1" was a deep in price warrant. It is recommended that investors holding "Sinochem CWB1" exercise their rights in time to avoid unnecessary losses caused by cancellation due to non exercise.
