The Introduction Of Covered Warrants Product Research

Compared with the mature markets overseas, there are a structuralshortage and the low number of supply in China' s warrants market---"doubledefect". At present, China' s stocks market only to the existence of equity warrants and stock warrants, not covered warrants; only to the existence of call warrants, not put warrants; only a dozen or so warrants listing in the transaction, compared with every year in overseas markets tens of thousands and even over hundreds of thousands warrants traded grand occasion, the gap is considerably. China's market defects led to excessive speculation characteristics of the warrants market. Therefore, how to develop China's warrants market, the introduction of covered warrants, derivatives playing an inherent function of price discovery, stabilizing the excessive speculation in the market and healthy development of China' s securities market have become an important issue.Based on the current stocks market scale, the reserve of subject stocks, the Stock Exchange of hardware and software facilities, the existing warrants market investors, the issuer reserves, market supervision system and, as well as inside and outside the historical accumulation in areas such as analysis, it is considered that there is solid foundation, good condition, a feasibility for our country to introduce covered warrants; on the analysis of stock warrants market development pattern, development goals, environment and development constitute, that the current priority should be given to fostering the development of covered warrants market; In an analysis of the introduction of covered warrants after the structure and function of the stock market, investors, the subject securities and issuers in areas such as the possible impact of the introduction of covered warrants that the advantages outweigh the disadvantages, with urgency; Concerning the introduction of covered warrants on policy proposals, on the one hand, the proposal is to improve the current spot market, the introduction of short selling and trading the same day rotation mechanism; on the other hand, it is necessary to strengthen the reform of the current system and regulatory at warrants market.