Huang Xiangyuan
A profound discussion on the creation of warrants attracted a strong statement from the Deputy General Manager of SSE. However, the doubt did not dissipate, and the inherent contradiction of warrant creation became more and more clear.
It is said that experts from the Shanghai Stock Exchange unanimously believe that the creation of warrants is a market-oriented behavior. However, Liu Xiaodong, the head vice president of the SSE's efforts to promote warrants, admitted that this is a solution for the management to use the market mechanism. In other words, without the use of market mechanism by the management, there would be no market-oriented behavior. Liu Xiaodong's statement is consistent with his previous statement on the "2006 Investment in China · Shanghai Forum". At that time, he said that the creation mechanism of warrants launched by SSE was not only to provide the supply and demand balance mechanism of the market, but also to generate the trading volume of the secondary market. Use Liu Xiaodong's spear of "using market mechanism" to attack the shield of the so-called "marketization behavior", and easily expose the paper tiger nature of those experts from the benefit institutions of warrant creation. To put it bluntly, it is a big joke to let the vested interests in the creation of warrants to prove the "marketization behavior" of the creation of warrants.
When Baosteel's warrant, the "first right in share reform", was about to be issued, Liu Xiaodong made it clear that the warrant issued by Baosteel was a special product during the period of share reform, so the issuer could not stabilize the sharp fluctuations of its transaction price through continuous creation. However, this time, that time. Why did WISCO forget the particularity of consideration for share reform when it issued the same share reform warrants, and can't wait to introduce the creation mechanism in the name of "using market mechanism"?
Such contradiction is determined by the particularity of warrants as the product of share reform. I remember that Professor Watson once used the "crooked neck tree" to vividly compare the stock reform warrants. He believed that the stock reform did not push out standard warrant products, but also carried out transactions in the way of general warrants. As a result, as soon as the listing was traded, the price was severely distorted. Although the original intention of the creation of warrants is to try to correct the deviation, it is doubtful whether the "deviation plus deviation" can be corrected.
It is the beginning of self contradiction to talk about the creation of warrants without the particularity of warrants as the product of share reform; The pursuit of efficiency at the expense of fairness is the beginning of warrant creation going further and further away from the basic principles of marketization. It is nothing more than stirring up the boiling water to suppress the speculative speculation of warrants through massive creation. Since the creation of warrants has in fact become a risk-free profiteering behavior, this kind of policy speculation with the characteristics of interest transmission is no different from violence against violence.
Although experts often talk about the marketization in Hong Kong or in the world, it is not difficult to find that the marketization of others has become a spear to attack our warrant creation shield. For example, although the creation of other people's warrants does not need the consent of the original issuer of warrants, they cannot use the same warrant code. In this way, the meaning of the same restriction on the number of created warrants is very different. The former effectively realizes the purpose of hedging risks by means of risk transfer, while the latter is by means of profit plundering. While leaving risks to the audacious elements who dare to take the lead in the warrant market, it also leaves risks to all those who participate in the warrant trading, needless to say, including the holders of the warrants as consideration for the share reform.
Besides, others' warrants are covered warrants, while your warrants are all equity warrants, and they are also warrants that serve as consideration for share reform. To manage equity warrants, especially share reform warrants, by managing covered warrants is inevitable. In this regard, Liu Xiaodong's bold statement that the SSE will never carry out quota management on the creation of warrants had better wait until the covered warrants are launched. This is because for the share reform warrants that have entered into trading, in addition to preventing speculative speculation, there is also a problem of safeguarding the rights and interests of investors. You can't always say to investors: for your long-term interests or the interests of more investors, I'm sorry, let me create your immediate interests!
