Legal Control Of Warrants Transaction Risk In China

Warrants market in Chinese mainland has been developing recently, quantity of warrants is few, but the sum of warrants transaction became NO.1 in the world, so it is clear that investors are crazy about warrants transaction. Warrant is a high-risk derivative instrument, in order to protect the interest of investors, it is necessary and significant to control the warrants transaction risk by legal system. Hong Kong and Taiwan regions are two mature warrants markets in the world, and these two regions have a close connection with Chinese mainland, so this article try to seek the legal arrangements controlling each warrants transaction risk in the warrants legal system of Hong Kong and Taiwan, and to be used as a source of reference for Chinese mainland to improve and establish interrelated legal system.This article includes four chapters:Chapter 1: Because of different intension and extension of warrants concept in different regions, when do comparative research on the Mainland, Taiwan and Hong Kong of China, we should make clear the similarities and differences between the concepts. This article lay a foundation for comparative research through analysis of the warrants definition in the legal norm of the Mainland, Taiwan and Hong Kong, and make clear the warrants concept which is used in this article. Besides, compose prelusion for using relation concepts in the following text through introducing the classification, analyzing the difference between warrants and similar concepts. Chapter 2: Based on the analysis of share warrant's legal nature, which is the right warrants indicate, investigated legal nature of warrants, and expounded the material risks in warrant transaction. Warrants transaction have credit risk of issuer, liquidity risk, manipulation risk, insider trading risk, time risk and other risks.Chapter 3: Had a systemic summary, comparative analysis and discussion of legal system arrangement of controlling warrants transaction risk in Taiwan and Hong Kong.Chapter 4: Based on the analysis of system framework of warrants transaction in Chinese mainland and its defect, expounded, analyzed and commented the existing system controlling warrants transaction risk in Chinese mainland, and to table a proposal about improving, besides, suggested to establish some wanting system through borrowing ideas from experience of Taiwan and Hong Kong.