The listing of new warrants will always attract the attention of a group of investors, and even the joint equity will receive more attention from market funds, and the trading and investment will be more active. But will newly listed warrants be a better choice? This is actually related to the market atmosphere and the characteristics of warrants at that time, which should not be generalized.

Since the introduction of warrants in August 2005, the number of warrants has been scarce. New warrants, like new shares, are obviously scarce, giving the market a lot of imagination space - there are many new warrants with continuous trading limits at the opening. This feature of the new warrants was vividly displayed on the subscription certificates listed last year. However, Sinopec CWB1, which was listed in March this year, ended the myth of the first day limit of call warrants, especially separable bonds. The reason is related to the negative atmosphere of the market at that time and the uncertain expectation of the future market trend. At that time, the market continued to decline, and the market atmosphere was depressed. The market had realized that warrants, as products derived from regular shares, could not be isolated. In addition, petrochemical CWB1 has a large plate, so it is reasonable that petrochemical CWB1 failed to seal the trading limit on the first day.

Look again at the recently listed Baosteel CWB1 Compared with the two warrants of Gezhou CWB1, the performance of Sinopec CWB1 is much better than that of Sinopec CWB1 at the initial stage of listing. This is mainly due to the positive effect of the performance of the company's semi annual report in July and the Olympic factors.

According to the regulations of the Exchange, the duration of listed warrants is between 6 months and 24 months. Therefore, the newly listed new warrants have the advantages of long duration and slow time value loss. However, whether investors participate and how to participate should also be in line with their own expectations for the future market of positive shares and investment strategies. Take donkey hide gelatin EJC1 as an example. On July 10, Dong'e Ejiao announced that July 14 was the registration date for the issuance of warrants, and Bermuda style warrants with a free issue price of 5.50 yuan were distributed at a ratio of 10:2.5. After the news was announced, the share price of Dong'e Ejiao improved on July 10. The share price once rose and the trading volume sharply increased, reflecting that the market hoped to obtain free warrants by holding shares. This can be explained from the terms of the warrant. The closing price of Dong'e Ejiao on July 9 was 26.85 yuan, making the intrinsic value of its warrant as high as 21.35 yuan, making it the highest tradable warrant with the highest intrinsic value at present. If investors expect that the trading price of warrants after listing will not be lower than their intrinsic value, they will have the incentive to enter the market in advance to obtain free warrants. However, in fact, the short-term real return of investors still depends on the upward fluctuation of stock prices and the performance of warrants after listing. In practice, the warrants can be obtained by holding Ejiao shares at the close of July 14, and the shares can be sold on July 15. As a result, the positive shares fell by an unlimited limit for two consecutive days on July 15 and 16, the stock price dropped sharply after the automatic ex right, the intrinsic value of the warrants shrank significantly, and investors were faced with the situation of loss of investment shares and the decline of the intrinsic value of the warrants at the same time. On the first day of listing, there was only a slight positive premium at the end of the market, and on the second day, there was a slight negative premium, that is, the price of the warrant was lower than its intrinsic value, with some discounts. Therefore, if investors fail to preset the target price of regular shares before entering the market, they may fall into a situation where they do not know what to do.

Generally speaking, newly listed warrants are indeed more likely to attract the attention of the market and have more room for speculation. However, investors should still select warrants with appropriate terms according to their expectations of the trend of the regular shares in a certain period of time and their risk tolerance, rather than just selecting investment objects based on the "new" and "old" warrants. At the same time, as the price of warrants is affected by different market factors, investors need to pay close attention to changes in market conditions, understand the risks involved, and then make investment decisions. (The article is for reference only, and the profit and loss caused by the investment based on it has nothing to do with it. If you need the original text, please log on to the investor education website of Shanghai Stock Exchange edu.sse.com.cn/education news/newspaper garden)