Interim Measures for the Administration of Warrants Issued by SSE T+0 Operation Reappears in the Market

Xinhua Shanghai, July 17, by wire (reporter Pan Qing)《 Interim Measures of Shanghai Stock Exchange on the Administration of Warrant Business 》Recently, it was announced that warrant products are about to return to China's securities market.

Warrants are securities issued by the issuer of index securities or a third party other than the issuer, and the agreed holder has the right to purchase or sell the underlying securities from the issuer at the agreed price within the specified period or on a specific maturity date, or to collect the settlement difference by cash settlement.

According to the Interim Measures, if the underlying securities of warrants applied for listing on the Shanghai Stock Exchange are stocks, the underlying stocks shall meet the following conditions on the date of application for listing: the market value of tradable shares in the last 20 trading days shall not be less than 3 billion yuan; The cumulative turnover rate of stock trading in the last 60 trading days is more than 25%; The circulating share capital shall not be less than 300 million shares; Other conditions stipulated by SSE. If the subject matter of the warrant is other securities, the qualification conditions will be separately stipulated by the SSE.

Warrants applying for listing on the SSE shall meet the following conditions: agreed warrant type, exercise price, duration, exercise date, exercise settlement method, exercise proportion and other elements; The number of warrants applied for listing shall not be less than 50 million; The number of investors holding more than 1000 warrants shall not be less than 100; The duration from the listing date is more than 6 months but less than 24 months; The issuer has provided performance guarantee in accordance with the Interim Measures; Other conditions stipulated by SSE.

For warrants issued by a third party other than the issuer of the underlying securities and listed on the SSE, the issuer shall provide and maintain a sufficient number of underlying securities or cash through a special account as performance guarantee, or provide an institution recognized by the SSE as an irrevocable guarantor of joint liability for performance. The issuer shall ensure that the underlying securities or cash provided for performance guarantee as required are free from pledge, judicial freeze or other rights defects.

Under any of the following circumstances, the listing of warrants will be terminated: 2 working days before the expiration of the warrant; The warrants have been fully exercised within the duration; Other circumstances identified by SSE. Five trading days before the expiration of the warrant period, the trading of the warrant will be terminated, but the warrant can be exercised.

In terms of the trading of warrants, securities companies with membership recognized by the SSE can buy and sell warrants on their own or on behalf of investors. The number of single warrant trading orders shall not exceed 1 million, and the minimum change unit of the declared price is 0.001 yuan. The number of warrants purchased is an integral multiple of 100. Warrants purchased on the same day can be sold on the same day.

Warrant trading is subject to price limit, which is 125% of the difference between the rising price of the day and the closing price of the previous day multiplied by the exercise ratio. When the calculation result is less than or equal to zero, the decline price of the warrant is zero.

The SSE shall publish the list of holders of each warrant's negotiable quantity, and the number of warrants held reaches or exceeds 5% of the negotiable quantity before the opening of the market every day. The warrant issuer shall not trade the warrants issued by itself, and the issuer of the underlying securities shall not trade the warrants corresponding to the underlying securities.

Where the underlying securities are suspended and resumed, the warrants will also be suspended and resumed accordingly. SSE has the right to suspend warrant trading according to market needs. For the warrants that have been listed for trading, a qualified institution may create the same type of warrants.

Where warrant holders exercise, they shall entrust members of the SSE to report through the trading system. The number of warrants declared for exercise is an integral multiple of 100. The exercise declaration order of the current day is valid on the current day and can be revoked on the current day. Warrants purchased on the same day may be exercised on the same day. The underlying securities obtained during the exercise on the same day shall not be sold on the same day.