Study On The Strategies Of Warrant Investment In China

Warrant has the functions of price finding and risk management. There are various warrant products in the most bourses of WFE and exchanges of warrant are very active. In fact, warrant is not strange to China securities market, for there have ever been exchanges of warrant in both shanghai securities market and shenzhen securities market. In recent years, with the rapid development of China securities market, warrant is demanded more and more urgently. As an importand instrument for payment of consideration by stockholders who possess non-current stock, warrant is put up to the history stage again from the reformation about resovling stock ownership distribution in April, 2005.First, the paper discusses emphatically the theroies of securities investment, including warrant' s definition and types, securities investment' s function, risk, development and characteristic and so on. Second, another elementary subject about how to fix the price of warrant is expatiated. Through the warrant pricing-model, the paper introduces how to caculate and evaluate the value of warrant by warrant' value index, and then analyses factors which can influence the price of warrant. The research of investment strategies is the central content and emphases of this paper. After the introduction to the strategy in the mature market overseas of warrant investment, by summarizing the characteristics of domestic warrant currently, it offers some advices for our warrant investment. At last, the paper , using the example of Younger, applies and validates the investment strategies mentioned before, then analyses and discusses the conclusion.After the reformation, by the development of China warrant market in recent 2 years, the quantity of investor and exchange is increasing rapidly. However, domestic warrant market is underway after all, which is unmature, lack of quantity and type. In addtion, investor is unacquainted to the warrant and the most investment about that is blindfold. Contraposing the conditions above and combining with the character of our warrant market, the paper try to give some helpful advices to the investors ultimately.