Research On Standardization Of Warrant Market In China

A warrant allows the investor to purchase ordinary shares at a fixed price over a period of time (years) or to perpetuity. The price of the shares is usually higher than the market price at the time of issue. A warrant is freely transferable and can be traded separately. Warrants are usually issued by companies for their own shares, or the shares of a subsidiary. Covered warrants are issued by banks, for the shares of other companies, or for use as a trading instrument.Warrant was issued again in 2005 because of the solution of the special problem in China's stock market. This thesis mainly introduces the experiences of warrant market in other developed countries or regions in order to standardize the market in our country.The thesis is divided into for parts. Firstly, it introduces the experiences of warrant market in America, German and Hong Kong. Then, it states the origin of warrant market in China. And the development of the market is further illustrated in the third part. At last, the problems which are in the progress of the development and the corresponding solutions are raised.