Development Of China's Warrants Market Research

Financial innovation has maintained rapid development in China capital m arket since the year 2005. and warrant is a important innovation the manageme nt put forward with the intention to meet the market development and the need of investors . what's more , the equity division reform provides a favorable mar ket environment for warrant. We can see how athirst and passional investors arefrom the striking and flourishing exchange of BAOGANG warrant, there is port folios with the quality of subscription warrant in China capital market before 19 95,but they are failed at last .there are many reasons about it :the legal and pol icy environment .unreasonable valuation and spiteful speculation etc. At the newstage ,it is an important task to study on how to keep the warrant market deve loping healthily .there are three parts in this paper: in the first part, the writer i ntroduce the basic knowledge about warrant;in the second part , the writer anal yzed Baogang warrant based on theory of the first part .and we found that the price fluctuation of the warrant didn't consist with that of the stock , and Baog ang warrant is a high-risk investment now .in the final part , based on a deep s tudy of the successful experience of Hong Kong warrant market, the writer raise d some proposals to promote the development of our warrant market from threeaspects : insurance process , exchange process and strike process. And we hope we can use these experiences for reference.