Hong Kong Equity Desks Gear Up For Warrant Re-Launch

  • 12 Nov 2001
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Equity derivatives traders in Hong Kong are gearing up to restart the domestic warrant market after new postings completely dried up in June as firms waited for new regulations to be issued. Firms stopped posting warrants on the Hong Kong Stock Exchange after Hong Kong Exchanges and Clearing issued a consultation paper on May 31 proposing rule changes, according to traders.

Traders in the territory expect the regulations to be sorted out by January and a flurry of activity to follow. "There's a lot of pent up demand," said Eddie Tam, director of equity derivatives at Credit Lyonnais in Hong Kong. "We hope this gets going as soon as possible and that the market will be at least partially reformed and better than before," he continued. One trader at a U.S. bank in Hong Kong estimated that at least 30 to 40 issues could hit the market in the first few weeks, most likely on blue chip names, such as HSBC, China Mobile and Hutchison Whampoa. Another trader estimated that at its peak, the market had around 300 outstanding issues at one time.

The new proposals are expected to remove certain regulations that hindered the market, according to traders, such as a minimum placement to 100 clients and only holding a maximum of 15% of the warrant on the issuer's books.

Lorraine Chan, spokeswoman at the HKEx, said the exchange is reviewing responses and has formed informal working groups with warrant derivative issuers discussing possible amendments. She declined to comment on a timeframe.

  • 12 Nov 2001

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 345,651.05 1349 8.09%
2 JPMorgan 341,748.87 1469 8.00%
3 Bank of America Merrill Lynch 306,869.45 1064 7.18%
4 Barclays 258,170.48 974 6.04%
5 Goldman Sachs 227,691.73 773 5.33%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 48,038.21 201 6.58%
2 JPMorgan 46,115.73 103 6.31%
3 UniCredit 39,566.35 173 5.42%
4 Credit Agricole CIB 37,118.63 184 5.08%
5 SG Corporate & Investment Banking 36,637.33 141 5.02%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 14,111.63 62 8.97%
2 Goldman Sachs 13,469.15 66 8.56%
3 Citi 9,971.36 58 6.34%
4 Morgan Stanley 8,572.10 54 5.45%
5 UBS 8,391.04 36 5.33%