Shanghai Stock Exchange investor education column
□ GF Securities Product Innovation Department
"Can I sell warrants on the maturity date?" When this column mentioned buying and selling warrants last week, we should pay attention to the exercise price of the warrants and the time from the maturity date, and immediately receive some inquiries from investors. This reflects that investors have gradually understood the investment thinking mode of "seeking knowledge before investing", and while we are pleased, we will also try our best to answer questions for investors.
Unlike stocks, warrants are not long-term valid, but time limited. At the same time, investors should also understand that the expiration date of warrants is the last survival date, but not the last trading date. In general, in order to ensure that there is enough time for settlement and transfer in the transaction and exercise on the last trading day, the last trading day is generally the sixth last trading day before the due date (subject to the final announcement).
For example, take COSCO CWB1, the equity warrant of securities settlement, for example. If the warrant holder issues an instruction to exercise during the exercise period, it needs to be received on the next trading day COSCO Shipping shares. Accordingly, according to the listing announcement of COSCO CWB1, its expiration date is August 25, 2009, and the expected final trading date is August 18, 2009 (subject to the final announcement). In order to remind investors of these two important dates, according to the current regulations, the issuer shall issue an indicative announcement of termination of listing at least 7 working days before the expiration of the warrant. Generally speaking, investors can learn the last trading day from the issuer's announcement, or calculate the last trading day on their own according to the maturity date, or consult the relevant issuer.
Check the terms of warrants in the market. The warrants due in recent months are Wuliang YGC1 and Wuliang YGP1 Two warrants.
According to the terms of these two warrants, the last trading date is March 26, 2008, the exercise period is from March 27, 2008 to April 2, 2008, and the exercise termination date is April 2, 2008. Since the warrants can only be traded on or before the last trading day, and both warrants are only 9 trading days away from the last trading day, investors need to pay special attention. Judging from the closing price on Tuesday, Wuliang YGC1 has a high negative premium (- 7.52%), and there is a certain arbitrage space between the subscription certificate and the positive shares. After considering the expiration time limit of warrants, investors can clearly make plans according to their own risk tolerance: under what conditions, cash out or exercise arbitrage, when to stop erosion and leave the market, and whether to close positions before the expiration of warrants. However, the price of Wuliang YGP1 due on the same day is currently outside of the deep price. It can be expected that its price is not sensitive to the fluctuation of the positive shares, and it may not be close to the price change of the positive shares. The probability of the final return to zero is high. Therefore, investors should avoid participating. If they hold it, they should sell it on or before the last trading day (March 26, 2008).
In daily life, everyone will consciously clean the refrigerator regularly to check which foods are about to expire and need to be handled in time to avoid expiration and mildew in the refrigerator. In fact, the same is true for investment warrants. Investors need to pay attention to the duration of their warrants. For warrants that are about to expire, they should pay more attention to their last trading day and expiration date, so as not to miss the last trading day and lose the last opportunity to sell. (The article is only for reference, and the profit and loss caused by investment based on it has nothing to do with it.)
