Turnover reaches $645m, accounting for 9pc of the total, as the market remains bullish on China
Bank of China's warrants were well received by the market on their trading debut yesterday, helped by investors' interest in the underlying shares and their need for derivatives to hedge risks.
Turnover of 33 derivative warrants on the country's second-largest lender amounted to $645.84 million, accounting for about 9.16 per cent of total derivative turnover of $7.05 billion yesterday.
They were the second most heavily traded derivative warrants on a single company by value yesterday after those on China Life Insurance which accounted for about 13 per cent of total warrant trading.
'Liquidity of warrants on Bank of China was largely driven by the strong market demand towards mainland-related stocks, while there has been a lack of catalyst for blue chips at present,' said Edmond Lee, senior vice-president of the derivatives department at SG Securities, the second-biggest warrant issuer by turnover in Hong Kong.
Investors' interest in Bank of China has been growing since its H shares began trading in Hong Kong last month.
The stock climbed 0.7 per cent to close at $3.575 on turnover of $1.1 billion yesterday.