A few warrant issues, a few positive reports and red chips are now firmly established in the can't-get-enough category. Carr Indosuez Asia (Derivatives) yesterday said it would increase the size of its warrant issue on a basket of red chips to 65 million from 50 million. The initial warrants helped to set off a rally in the shares of Chinese-government backed firms when they were launched on August 7. The five-share basket covered by the warrants is up 6.4 per cent since the first batch were issued. BZW Warrants launched a similar 80 million warrant offering yesterday, but on a slightly different basket of shares. The BZW basket includes Guangzhou Investment, China Overseas, Guangdong Investment Cosco Pacific and Shanghai Industrial Holdings. The Carr warrants include China Resources and Ng Fung Hong but not Cosco Pacific or Guangdong Investment. Meanwhile, HG Asia has added to the growing body of research on red chips with a report, 'Conglomerates: A Changing Game'. It says asset growth has been a driving factor in the companies' growth, but exposure to China versus Hong Kong is one of many variables that distinguishes one company from another. HG Asia's China research team has focused on five companies that are different from those in the warrant baskets. Red chips are so new as an asset class that a benchmark has yet to be established, it says. Some are trading at price-earning ratios well above those of Hong Kong conglomerates. Some brokers warn that a consolidation may be necessary before further gains are seen.