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Markets · Derivative
HKEX introduces inline warrants as part of its 3-year plan
CKN
2019/07/15 03:21:43
2,174
Hong Kong Stock Exchange (HKEX), inline warrants, investment,

Jul 15, 2019 (China Knowledge) - Hong Kong Stock Exchange (HKEX) plans to launch inline warrants trading on Thursday. This is part of the exchange's 3-year plan to remold itself into a leading Asian asset management center.

50 inline warrants will be issued by six banks including BNP Paribas, Haitong, HSBC, JPMorgan, Societe Generale, and Vontobel. Warrants will begin trading on July 18 on HKEX.

Coming 13 years after the last structured products callable bull/bear certificate (CBBC) issued by the Hong Kong Exchanges and Clearing, the inline warrants are derivative products linked to Hang Seng Index and the share prices of Tencent Holdings, China Construction Bank, China Mobile, China Mobile, AIA, and Ping An Insurance.

Managing directors of markets for HKEX said in a media briefing that under the 3-year strategic plan more derivative and structured products would be introduced to serve investors’ different investment strategies. They also believed that investors in Asia will be interested in trading such products, as inline warrants are popular in Europe.

The duration of the first 50 inline warrants is 6 months, but are approved to expire up to 5 years later by HKEX. Investors are allowed either to hold them until the maturity date or trade them on the stock exchange. Meanwhile, the six issuing banks need market makers to quote prices for such warrants in order to ensure liquidity.

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