Hello, the definition of "warrant": its professional name should be "warrant", and what is often mentioned in the news media are covered warrants and stock warrants. At the same time They are also the two most common types in the Hong Kong market. Covered warrants are one type of derivative warrants, while derivative warrants are a type of warrants. Warrants also include stock warrants. And it itself is a type of option.

Stock warrants are warrants issued by listed companies. For example, the warrant code 2303 is issued by Huafeng Textile (364). It is characterized by a relatively long term, such as 2303 has a term of 3 years. Another feature is that if investors who own the warrants want to redeem their shares when they expire, the listed company will issue new shares for redemption.

Derivative warrants are warrants derived from the "assets" they represent. These assets can be stocks, stock indexes, gold, foreign exchange, etc. The above-mentioned stock warrants generally only represent the stocks of one company, while the stocks represented by the derivative warrants can be the stocks of one company, or they can represent the stocks of multiple companies at the same time, such as 9554, which only represents Sinopec ( 386) stocks of one company, while 9394 (purchased by Petrochemical Morgan 0406) also represents Sinopec, Shanghai Petrochemical, PetroChina and Yizheng Chemical Fiber in the petrochemical industry, so it is also called a basket.

Derivative warrants; the "assets" included in index derivative warrants include the Hang Seng Index, H-share index, red chip index, and even international market indexes including the Dow Jones Index, etc.; foreign exchange The asset represented by a derivative warrant is the exchange rate of a foreign currency. Derivative warrants are issued by a third party that holds the relevant assets, not by the relevant listed company itself. They are generally issued by international investment banks (generally referred to as issuers). Therefore, if investors need to exchange stocks, it can only be a transfer of old shares, and does not involve the issuance of new shares by the listed company. Derivative warrants are divided into two categories (see figure), including non-covered warrants and covered warrants. The mainstream in the market now is covered warrants (referred to as covered warrants), and both The difference is: non-covered warrants mean that the issuer does not have enough relevant "assets" for the warrant holder to redeem, while the opposite is true for covered warrants.

This information does not constitute any investment advice. Investors should not use this information to replace their independent judgment or make decisions based solely on this information. If you operate on your own, please pay attention to position control and risk control.