A number of major banks in the city have been tempted to seize the market for Hong Kong’s rounds of warrants
According to Bloomberg, Morgan Stanley, the US-funded bank that has been in violation of the local warrants for 10 years, is making a comeback. It will issue 9 warrants next week, and the city’s Guotai Junan and Citigroup are also preparing to join the derivatives war. According to the securities industry, the listed round of securities has traded more than 5 trillion yuan in one year. Although the profit of the issuance business is meager, if the brokerage firm can obtain sufficient market share, it will certainly help the business.
Demand for Hong Kong stock derivatives was strong, and many large banks plotted to seize the local license market
The first nine will be listed next Tuesday
The website of the Hong Kong Stock Exchange (00388) shows that the first batch of 9 squadrons will be listed next Tuesday, 6 is only a good subscription card (Call round), 3 is only a bearish PIN (Put round), and related assets include US group comments. (03690), Tencent (00700), HKEx and China Life Insurance (02628). As early as July this year, Morgan Stanley first launched 8 HSIs and CBBCs. The total number of CBBCs (including the index CBBCs and the CBBCs) that have been listed and listed so far are more than 90.
At the same time, market news indicates that Guotai Junan has obtained the required regulatory agency license and is ready to issue rounds in Hong Kong at any time. As for the Citigroup that had been in Hong Kong, it also intends to re-enter the market and is waiting for the regulator to re-approve the licence.
In the Hong Kong auto show market, publishers often join and fade out. For example, Barclays, Standard Chartered, Deutsche Bank, Bank of America Merrill Lynch, Hehe, Suhuang, and Dahe, which had issued warrants in Hong Kong, have all withdrawn, and some of them have faded. The reasons are the increase in regulatory costs and the risk of falling profits. However, in recent years, new publishers such as Haitong International and Ruiwantongbo have participated in the war.
Industry: Breakthrough must have new selling points
As new distributors join the market, Weng Shiquan, head of Hong Kong’s listed products sales department, believes that it is a good thing. After the new issuers join, they must break through and have new selling points. For example, the bank re-launched N-type CBBCs (characteristics) It is the recovery price equal to the exercise price). Moreover, the warrant is a market for retail investors, and it takes the publisher to spend more time educating investors. It is a good thing if more publishers participate in the promotion.
Zhou Guowei, director of UBS’s Asian Equity Derivatives Sales Department, said that in the past decade or so, different issuers have entered and exited the market. With the healthy development of the license market, publishers have increased their choices for investors. In addition, the industry and regulators can research and develop different types of products to meet the needs of investors.
Wheels accounted for 21% of the market turnover
At present, the Hong Kong stock market is in general. Why are there still publishers joining the competition? Zhou Guowei believes that in addition to the market environment, issuers also depend on their views on the market outlook. For example, when the market is quiet, it is easier to invite people. When the market is relatively competitive, the competition is less likely to be seen. The timing. He expects the optimism for the rest of the fourth quarter, as many negative factors dragging the market have been reflected.
In fact, Asian equity derivatives are highly sought after, and the demand for investment in Hong Kong stock derivatives is even stronger. In recent years, the turnover of Hong Kong stocks has remained relatively stable. According to the data of the Hong Kong Stock Exchange, the average daily turnover of the first three seasons of this year was about 19.7 billion yuan, accounting for 21.7% of the market turnover. The average daily turnover of the round last year was about 23.2 billion yuan, accounting for 21.6% of the market turnover. If calculated on the trading day, the turnover of the round last year reached 5.7 trillion yuan.