Prepare Legal System Covered Warrants

From the second half year of 2005, our country has released warrant for two years enough. The development of warrant market in China may be said unsteady extremely. Some warrants were controlled by investors who have plenty of founds. The risk concealing in the warrant market is bigger and bigger, so some once have lots of questions to the function of warrant in our country. At the initial stage of warrant development, stock reformed warrants are main part in warrant market. The scale and developing space are limited. At the same time, the stock market investor structure is not reasonable. The comparison of professional investors isn't enough big, and the investment principle of the public investors (so-called retail) is still not mature at stock market. The risk consciousness is weak thin, so this will also result the warrant market out of control. But we can't deny the positive factor in the stock market, which of growth is just in the continuous. For example, the organization investor of the creative consciousness is continuously strong, and its social sense of responsibility sets up, market supervision system increasingly perfect etc. On the base of some pass data statistics, only two years, our country's scale of warrant market is already only next to Germany in the global scope, resides the second. It is thus clear that warrant market will have a good future if the creative mechanism of warrant products can follow with time, because our country's stock market still has enough scale and strength, and it can gives the development of our warrant market enough support.Currently, Covered warrant will be released by Shenzhen Stock exchange and Shanghai Stock exchange. Stork reformed warrants which were released in the initial stage of warrant development will expire to go power continuously. Covered warrant have not been yet released fully, the market faces to break layer risk; In the meantime, The participant in our country warrant market increases continuously, the organization investor estimates the value of warrant returning to reasonableness gradually and the need to the big sum trade is building up. Releasing to Covered warrant is a rare opportunity to our country warrant market, is a challenge, too. After all, Covered warrant is a kind of warrant with higher risk. If stock exchanges or other supervisors can do an ideal adjustment and supervision fully with releasing Covered warrant, they should firstly do full work for a concrete system arrangement of Covered warrant. Owing to this, this article will analysis to the oversea main warrant markets' law systems, we will put forward some law suggestions for our law system construction of Covered warrant, pointing to Covered warrant product design, the publisher qualifications restriction ,the object property choice, procedure of entering market and market maker etc.The full article is divided into five parts totally:The first part mainly introduces general theories of Covered warrant. First, introduces the meaning and the law characteristic of Covered warrant, then analysis to the function of exchanges warrant from the investor and the publisher; and then compares Covered warrant with related similar product; finally, introduces the history and the present condition of Covered warrant development.The second part introduces the necessity and the possibility of releasing Covered warrant in our country currently. Mainly it has the meaning of both sides on the necessity: Releasing Covered warrant is inevitable request of stock market's development in our country; Releasing Covered warrant is also inevitable request of our country's warrant market lined with the world. On the possibility, Main performance: Our stock market strengthens completely and tend in mature, and this provides a good exterior market environment with the development of Covered warrant; The soft or hardware facilities of our stock exchange have reached modern level in the world, and this provides a guarantee for the safe trade of Covered warrant; The stock market law system is increasingly perfect, and this provides certain system guarantee for Covered warrant market; Domestic and international experience in developing Covered warrant is worth of learning for modern Covered warrant market.The third part elaborated main contents about law system of Covered warrant market overseas. This article mainly introduces the law systems construction in Hong Kong, Taiwan and Singapore etc. We introduce mainly the publisher's condition, object property, Covered warrant product, procedure of entering market and market maker system etc. Thus we may discover main points about Covered warrant law system arrangement.The fourth part is the introduction about our present lawmaking condition of Covered warrant and problems in concrete law system of our Covered warrant .This article makes a synopsis description to our lawmaking condition of Covered warrant from law level, the administration regulation level and rule level in stock exchange. Then it points out the problems existing in them. Main problems are: lack of explicit provision about Covered warrant publisher qualifications; object property choice is single; the guarantee way of fulfilling contract is deadlock; procedure of entering market has no efficiency spirit; the influence of lord trader system becomes weak etc.The fifth part is a core part in this article, mainly discussing how to make our Covered warrant law system perfect. we put forward correspond suggestion about the following problems: publisher qualifications, the choice of object property, innovation of Covered warrant product, improving the guarantee way of fulfilling contract, procedure of entering market system etc.