The validity of the warrants market research in China
|Keywords||Warrants Mobility Black-scholes model Dilution effect Theoretical price|
Our warrants late 1992, first appeared in China , the market mechanism is imperfect, and related laws and regulations are not sound , resulting in the initial listing of the warrants serious speculative , by the end of June 1996 , the Shanghai and Shenzhen stock warrants The trading was halted . China Securities Regulatory Commission approved by the \Most heyday had more than 90 warrants in the city , with the gradual completion of the split share structure reform , warrants gradually withdraw from the market , to the only Changhong warrants traded in the city . Warrants market is of great significance to the development of China's capital market . Warrant its hedge , low threshold , financing convenience advantages favored by the issuers and investors to contribute to a better understanding of options and futures , and with the development of China 's financial markets , the analysis of the warrants , the development of derivatives market. With the gradual liberalization of the capital market in China , will promote securities firms to participate in international competition , to achieve international standards as soon as possible to speed up China's securities market . Become active trading varieties of early issue warrants trading mechanism because of its high - risk high-yield characteristics and T 0 , attracting a large number of investors , the market price of our warrants serious deviation from the theoretical price and high premium significantly , the speculative atmosphere , these adverse the factors also exposed many problems exist in China 's warrants market . This article is designed to use a theoretical model and empirical test of the warrants market efficiency and the main problems in order to come to a reasonable proposal , and to further explore the future outlook of China 's warrants market trends and other financial derivatives reference . The innovation of this paper are two-fold: the first time the introduction of the liquidity theory warrants market , to study the relationship between liquidity and yield , and contrast the classic securities liquidity theory , come to China 's warrants market developments . Second , the warrants market is only one in the city , in the absence of the new warrants issued with the maturity to withdraw from the market in August this year , the future of China 's warrants market go from here discussed .