Learn mandarin - Baosteel warrants saw biggest drop

Home Business China International Culture��Edu Sci��Tech Sports Life Travel P
hotos

��Search

  China Observer

�� Maternity & child care improved in Tibet

�� More Chinese women act as gov't officials

�� Half of Shanghai's "one child" live with parents

  Photos

�� Xinjiang sponsored first Dawazi challenge

�� World's No. 1 stone Buddha

�� Hand-painted "map of old Beijing and customs"

��Home>>Business

Baosteel warrants saw biggest drop

www.chinanews.cn 2005-08-30 14:43:51

Chinanews, Aug. 30 - Warrants of steel heavyweight Baosteel dropped 7.8%
yesterday, the largest margin since they entered the market, providing
investors an initial experience of risk of warrants.
Experts pointed out this signifies that Baosteel warrants are now
returning to a rational situation after craze in early days. However, it
requires some time to finish the journey of return.
During most time of yesterday, Baosteel warrants saw a downtrend bias and
dropped by a sharp margin in the last few hours. Price of the warrants
declined from 1.763 yuan at 2:25pm to 1.685 yuan at 2:35pm, a drop of
4.4% in ten minutes. After a short-lived rebound, the warrants continued
the declining trend and fell to the bottom of 1.661 yuan and closed at
1.666 yuan.
Chances became much slimmer to make multi-transactions in one trading
day. As most investors engaged in such transactions were not able to make
profit, transaction volume of Baosteel warrants also shrank visibly to
522 million, with a value of about 928 million yuan (US$114 million).
Turnover rate reached about 135%. The transaction volume is the second
lowest after the warrants reached limit up on the first day.
According to experts, the trend of Baosteel warrants yesterday proved
that speculation in the market has weakened to some extent and price is
becoming rational. As a result of the mechanism that allows
multi-transactions in one trading day, however, interest arbitrage will
continue to exist in the market, which will hinder the decline of
Baosteel warrants.

          ��Baosteel moves ahead in Fortune 500
          ��Baosteel, Yangtze Power join state share sale

Copyright� 2004 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.
Disclaimer: viewpoints in the website do not represent China News Service

Learn Chinese, Learn mandarin