Huge turnover on six issues across the border points to HK's loss of No1 status
Hong Kong's status as the world's leading warrant market would be lost to the mainland as soon as next year, an issuer has warned, citing a daily billion-dollar turnover from only six mainland warrants.
Under share reforms, mainland companies started issuing warrants in August and have rolled out the six so far.
Yesterday, the six warrants recorded a combined turnover of 8.38 billion yuan, compared with 1,668 warrants in Hong Kong securing a turnover of $3.89 billion.
'If the mainland warrants manage to sustain their turnovers, then it will be no surprise for the mainland to surpass Hong Kong and become the most active warrant market in the world as soon as next year,' said Heddy Tsang, the head of distribution for private investor products at ABN Amro.
However, Ms Tsang said the over-eagerness of mainland investors towards warrant trading might result in central government intervention to prevent any bursting of bubbles.
Earlier this month, Hong Kong Exchanges and Clearing chief executive Paul Chow Man-yiu made similar comments, saying that the city's top position in the world's warrant market would be challenged by overseas markets in the next three years.
