Covered Warrant

Geared for risk

Hong Kong is the world's biggest warrants market. Average daily turnover in the city for warrants (and its close kin, the callable bull/bear contract) clocks in at a thumping HK$19.3 billion, according to figures from HSBC.

Monday, 23 May, 2011, 12:00am

Alert sounded on suspicious warrant trades

Exchanges plan to step up action

Mainland stock exchanges have vowed to step up policing of suspicious warrant trading to weed out irregularities in the world's biggest market for the derivative product.

10 Jul 2007 - 12:00am

Disruption hits HK$1b in warrants trade

Reuters, an international real-time financial data provider, suffered a service disruption yesterday that affected an estimated HK$1 billion worth of Hong Kong trading in warrants issued by firms that failed to access other providers.

27 Apr 2007 - 12:00am

Warrants fever demonises market

Derivative warrants - a favourite punting instrument among retail investors - are once again the talk of the town.

10 Sep 2005 - 12:00am

Brokerage rejects SFC probe rumours

SG Securities yesterday denied rumours it was being investigated by the Securities and Futures Commission for improper derivatives trading.

'I have checked with compliance, and there is no official investigation of us,' said Raphael Blot, SG's head of Asian derivatives.

8 Jun 1999 - 12:00am

Beast takes on a life of its own

New covered warrant issuing rules requiring a minimum free float of shares were designed to protect investors. They look to be having the opposite effect.

27 Jun 1997 - 12:00am

Seven call warrants launched in big day

INVESTMENT banks may have set a record, launching at least seven covered call warrant offerings yesterday, raising more than $767 million in a single day.

So far this year, investment banks have tapped the equity derivatives market for at least $3.6 billion of what one banker called 'funny money'.

1 Feb 1996 - 12:00am

Warrants stream becomes a flood

THE flow of warrant issues has accelerated with three separate issues on the territory's blue chip stocks yesterday.

Peregrine Derivatives sold 50 million warrants giving investors the right to buy shares in Li Ka-shing's property developer, Cheung Kong, at $46.50. The warrants were sold for $1.46 each and expire on June 27 next year.

24 Jan 1996 - 12:00am

CL unit joins warrant issuers

CREDIT Lyonnais Financial Products (Guernsey) has become the latest house to offer call warrants, issuing 450 million warrants on Henderson Investment.

Ten warrants allow the holder to buy one Henderson share at $5.68, well below the stock's close of $7.10 yesterday.

18 Jan 1996 - 12:00am

Warrants on China Light

BANKERS Trust International has issued 50 million call warrants on China Light & Power Co at $1.128 per warrant. The exercise price is $34 and the expiry date is August next year.

19 May 1995 - 12:00am

Credit risk

THE Stock Exchange has warned investors of credit risks for derivative warrants. The exchange noted media comment about the effect on warrant buyers if a major warrant issuer collapsed.

30 Mar 1995 - 12:00am


CARR Indosuez Asia will issue 400 million covered warrants on Amoy Properties at 19.6 cents per warrant.

The conversion ratio is 10 warrants per share and the strike price is HK$6.15, compared with Amoy's closing HK$7.25 today.

The warrants, which expire on June 17, 1996, carry a gearing of 3.7 times and an all-in premium of 12 per cent.

17 Mar 1995 - 12:00am

Flexibility enhances lure of derivatives products

DERIVATIVES have a bad reputation in international markets. If it is not Kidder Peabody losing millions in bond-linked trading then it is Salomon Brothers with a Hong Kong problem from losses suffered by clients who went into derivatives.

21 Oct 1994 - 12:00am

New warrants a litmus test for exchange

THE decision by the stock exchange's listing division to defer the processing of listing applications on call-spread warrants is hopefully a routine part of the body's work.

6 Jun 1994 - 12:00am

Covered warrants

COVERED warrants provide an option for investors to exercise a right to buy or sell underlying stocks at a pre-arranged price. Unlike straight warrants, covered warrants are issued by a third party on shares they hold.

They have a finite life. If unexercised by the expiry date, warrants become worthless.

5 Jun 1994 - 12:00am