In the early morning of March 3, Anshan (a pseudonym), a shareholder, and seven other investors of China Southern Airlines put warrants came to the CSRC to reflect "the unreasonable situation of put warrants". On the same day, the National Two Sessions will begin.
Anshan said that the put option plays a leverage role in stabilizing the market in the stock market. When shareholders buy the put option, they have signed a risk assumption agreement with the securities company. So why use creation to stabilize the market since the Shanghai Stock Exchange has launched the leveraged put option? Why do you use creation to make the put right fall when the market is bearish? Is this not to entrap the investors who buy the right to sell by shorting the market?
In the face of the situation reflected by many put warrant investors of China Southern Airlines, Fan Fuchun, Vice Chairman of the CSRC, told reporters on the sidelines of the two sessions that investors' education should be strengthened at present.
Education of warrant investors should be strengthened
The reporter interviewed Fan Fuchun, Vice Chairman of the China Securities Regulatory Commission, between the two sessions of the NPC and the CPPCC, in the face of repeated reports of the put warrants of China Southern Airlines. The reporter noticed that during the two sessions, China Securities Journal opened a column of "Warrant Investor Education". This column is hosted by the Ministry of Education of SSE Investors, and participated and contributed by GF Securities, Ping An Securities and CIC Securities.
The reporter asked Vice Chairman Fan Fuchun what he thought about the special education column for warrant investors set up during the two sessions of the China Securities Journal? Vice Chairman Fan Fuchun said that the education of warrant investors has been ongoing, mainly to strengthen the education of warrant investors.
Supervisors should improve the design of warrant system
"The original intention of the regulators when they launched the warrant system created by securities companies was good," Shi Changqing, chief analyst of Bohai Securities, told reporters, "just to curb excessive speculation and speculation.". It said that when the warrant was bought and sold at a high price because it deviated from a reasonable price, its supply and demand had actually lost balance. Therefore, the creation of warrants by securities firms at this time can play a role in curbing excessive speculation and speculation.
However, after all, securities companies are also profit oriented institutions, and there is a possibility that the timing and operating skills of creating warrants in market transactions will incline to their own interests. This requires the regulation or supervision of other systems. In addition, not all securities companies can "sell at a high price and buy at a low price to write off" after their establishment to earn profits. There are also some securities companies that cannot buy back losses after creation and sale, but this phenomenon is relatively rare.
Ying Zhanyu, a researcher at the Institute of Finance and Securities of Renmin University of China, said that when putting out put warrants, no one was sure that it was a bull market and no one was sure how long the bull market would last. Therefore, put warrants are meaningful in terms of product functions, because people always know that the bull market has passed. Bull market and bear market should not be the reason to launch call or put warrants, which are needed in any market. The regulatory authorities should improve the warrant market from the product system design.
Our reporter Rong Mingmai, Li Qiantao, Wang Meili, intern Shen Qi
Sina statement: The content of this article is purely the author's personal view, only for investors' reference, and does not constitute investment advice. Investors operate accordingly at their own risk.
