Study On The Regulation Of Covered Warrants 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.Covered warrants is by has this correlation property the third party release, distributes by no means by correlation-enterprise itself, generally all is the international characteristic investment bank organization release. The distributor has the correlation property or is authorized to have this property. Covered warrants can be Call warrants or Put warrants , and investors face the distributor's credit risk at the same time. Covered warrants is the present international stock market mainstream Warrants.Since from June, 1996, our country stock market has promoted the first warrants, the warrants market experiences several and got up several and fell, gradually steadily is mature, recently innovates the experiment sitenegotiable securities company basically to have the release to prepare Covered warrants the condition, moreover the above proves50ETF was sign first prepares Covered warrants also soon grow up .This article based on this background under, emphatically elaborates Covered warrants market supervising and managing aspect the insufficiency and the suggestion.This article altogether divides into five parts, the first part mainly introduced studied the significance, the research background , emphatically induces domestic and foreign about has warrants the literature material.The second part mainly is the risk analysis, Covered warrants operation process, may divide into the release, go on the market, the transaction and settles accounts 4 links, take this as the foundation introduced Covered warrants operation process each link the risk characteristic. Then mainly carries on the risk measure through the VAR method, and take this as the rationale , carries on the example simulation through the Bao Gang Corporation warrants .The third part through studies and profits from Hong Kong, Taiwan andso on the mature market supervising and managing experience lesson summarizes our country emerging to prepare exchanges the difficult position and the opportunity which the warrants market grows strong needs to face.Part four Mainly expound the fact our country prepares against and adds the overall frame of the market of covered warrants, the function of the government (create the fair market environment; Improve mortgages and assure the system; Maintain the stability of the market of covered warrants); Self-containment supervisory function of the exchange; Function of Settlements . Chapter this explain our country covered warrants market deficiency of structure and legislate, propose emphatically finally, for instance about the right of checking and approving that is issued and listed, about honoring an agreement and assuring, about disclosure of information, etc.Part five It is the innovation here in, examine through Granger cause and effect, prove the straight stock market and prepare against and add the relation of the market of right card, propose the supervision suggestion in supervising actually, coordinate two markets each other, promote the healthy and stable taking a step forward of the capital market of our country.Finally, because author's style also very jerky, is very various regarding this question has not been able to conduct the thorough research , only this hope later the friend which will have the interesting this aspect can have a cheap model.