HSI Structured Warrants in Focus as China Swings
OREANDA-NEWS. Structured warrants on the Hang Seng Index are among the top 15 most actively traded warrants in the month-to-date as Hong Kong and Chinese equities continue to grab investor interest. China stocks sank most in nearly two months on Wednesday on speculation that signs of stabilisation in its economy might prevent the government from increasing stimulus. Chinese shares had surged last week to a three-month high on the back of stronger-than-anticipated March export data, after staging a 12% rebound in March.
Recent data showed the world’s second-largest economy grew 6.7% in the first quarter, in line with economists’ estimates, while industrial output and retail sales in March beat expectations. China’s central bank has indicated it may be less inclined to boost monetary stimulus following signs that the domestic recovery is starting to gather pace.
On Wednesday, the Hang Seng China Enterprises Index declined as much as 2.4% after hitting a three-month high yesterday, while the Hang Seng Index fell as much as 1.6%. The Shanghai Composite Index sank as much as 4.5%, most since February 29, before trimming losses to close 2.3% lower.
In the month thus far, the five most active Structured Warrants are HSI warrants – 20,800 Call Warrant (expiry date 29 June 2016), 21,000 Call Warrant (28 April 2016), 20,000 Put Warrant (29 June 2016), 21,400 Call Warrant (30 May 2016) and 20,600 Put Warrant (28 April 2016). These five warrants traded a total turnover of S$146 million in the month-to-date.
|Counter Name||Stock Code||Call/Put||Expiry Date||Exercise Price||April 2016 Traded Value (S$)|
|Hang Seng Index||242,510,795.20|
|HSI 20800 UB ECW160629||BPRW||C||29-Jun-16||20800||42,023,862.70|
|HSI 21000 MB ECW160428||BRGW||C||28-Apr-16||21000||26,861,785.70|
|HSI 20000 MB EPW160629||BOCW||P||29-Jun-16||20000||26,445,936.80|
|HSI 21400 MB ECW160530||BRPW||C||30-May-16||21400||25,578,502.80|
|HSI 20600 MB EPW160428||BOBW||P||28-Apr-16||20600||25,538,721.70|
|HSI 20600 MB ECW160530||BROW||C||30-May-16||20600||18,878,578.70|
|HSI 20000 MB EPW160530||BRMW||P||30-May-16||20000||18,473,239.20|
|HSI 19600 MB EPW160428||BRFW||P||28-Apr-16||19600||16,262,002.80|
|HSI 20200 MB ECW160428||BQJW||C||28-Apr-16||20200||11,491,988.00|
|HSI 17800 UB EPW160629||BPSW||P||29-Jun-16||17800||7,738,125.60|
|HSI 20800 UB EPW160428||BMRW||P||28-Apr-16||20800||6,309,839.50|
|HSI 19200 MB EPW160530||BRNW||P||30-May-16||19200||6,292,646.10|
|HSI 20000 VT ECW160428||BQVW||C||28-Apr-16||20000||6,235,236.00|
|HSI 23200 MB ECW160629||BNZW||C||29-Jun-16||23200||4,380,329.60|
|Hang Seng China Enterprise Index||2,462,785.90|
|HSCEI 10500 UB ECW160629||BMSW||C||29-Jun-16||10500||2,462,785.90|
|NIKKEI225 15500 MB EPW160610||BOQW||P||10-Jun-16||15500||2,692,040.20|
|OCBC BK MB ECW161003||BMKW||C||3-Oct-16||9||2,399,261.20|
|UOB MB ECW160705||BNKW||C||5-Jul-16||18.9||3,231,878.20|
|DBS MB ECW160711||BPJW||C||11-Jul-16||14.8||10,303,229.20|
|DBS MB EPW161003||BNOW||P||3-Oct-16||15||4,424,717.80|
Source: SGX (data as of 19 April 2016)
Specified Investment Products
Structured warrants are an example of Specified Investment Products (SIPs). The MAS has introduced measures for intermediaries to safeguard the interests of individual investors investing in SIPs, which are products with features that might be more complex in nature.