SG strives to build its warrant business in China

SociTtT GTnTrale has signed a memorandum of business cooperation with GF Securities to develop warrants and other equity derivatives products in China. The cooperation reflects both partiesÆ view of the enormous size and potential of the Chinese market, in terms not only of investment opportunities, but also when looking at the anticipated Chinese demand for investment products.

SociTtT GTnTrale holds a roughly 14% market share of the global warrants market and has been one of the largest warrants issuers in Hong Kong.

GF Securities is one of the pioneers of the PRC securities industry. For example, when the split share-structure reform scheme was implemented last year, GF Securities designed a company warrants and a call and put warrants for China Yangtze Power and Wuhan Iron and Steel Group respectively; they were well received by the market.

Both SociTtT GTnTrale and GF Securities are optimistic this collaboration will be a successful win-win relationship in the future. As SociTtT GTnTrale says in its announcement, "Through this cooperation, GF Securities can benefit from SociTtT GTnTrale's global capabilities, product innovation and risk management expertise. The relationship with GF Securities will add to SociTtT GTnTraleÆs ability to comprehend the rapid growth in the China derivatives market."