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BOC

BOC intent to launch 33 warrants lifts shares

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The Bank of China plans to release 33 derivative warrants on Monday, a record number for a single company on the first day of its warrants trading launch.

The BOC launch easily beats the current record holder, China Construction Bank, which issued 24 warrants on the first day in November last year.

BOC's warrants have been keenly anticipated since the stock began trading last month partly because buyers are hoping the related hedging activity will help push the stock's price higher.

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Brokers said a buying spree of BOC shares had begun thanks to the warrants sale and its A-share listing in Shanghai tomorrow.

The country's second-largest lender has priced its A shares at 3.08 yuan each in the largest new share offering on the mainland, representing 2.85 times book value as of last December 31 and 22 times earnings per share last year.

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BOC's H shares jumped 2.84 per cent to $3.625 yesterday, the highest since its listing on June 1, changing hands at 26.68 times earnings.

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