Research On The Trading Mechanism Of The China's Warrant Market

Compared to the world's other mature markets, the mainland's warrant market has its unique system of trading arrangements, such as the creation and write-off system; At the same time, the mainland's warrants market does not introduce in a market maker which is the popular international system ,but a dealer system. These special arrangements for the trading system will affect the validity of the capital market to enhance market risk, and so on and so on, are worthy of serious academic study.From the status now, the domestic researches on the warrants focus mostly on product pricing, less in the warrants trading mechanism. In particularly the lack of warrants for the market system is more systematic empirical research and analysis; In addition, from the improving the market system's point of view, there is a lack of relevant evidence-based research.Firstly, this article introduces the basic concepts of the warrants, including the definition, classification, characteristics and development history, and so on; then introduces the warrants market trading system in Hong Kong, Taiwan and the mainland, and to identify similarities and differences of these markets; subsequently adopted by the evidence E analysis of the market trading system, including the market maker system for the creation and write-off, the days of the transaction, such as rotary draw these special trading arrangements for the system on the market; Finally, on the basis of previous research, this article also puts forward some policy recommendations for a better market trading system.