KUALA LUMPUR: RHB Investment Bank Bhd issued 10 new structured warrants tied to Chinese companies listed on Hong Kong Exchange (HKEX), catering to the needs of increasingly diverse and sophisticated Malaysian investors.
In a statement on Friday, it said the 10 new Hong Kong stock warrants cover a number of Chinese companies listed on HKEX including China Longyuan Power Group Corporation Ltd, Xinyi Solar Holdings Ltd and Ganfeng Lithium Co Ltd.
“Renewable energy and new energy Vehicle as the main themes leveraging on environmental, social and governance (ESG).
“This issuance amplifies RHB Banking Group’s sustainability journey focusing towards channeling more ESG and green investment, while providing new avenues for retail investors to be part of such transition,” it said.
The structured call warrants were listed and traded on Bursa Malaysia starting Friday, allowing investors lower cost of entry to the performance of HK traded shares and the convenience without the need of a foreign trading account.
RHB Investment Bank is an advocate of innovative equity solutions and introduces stock warrants on selected Hong Kong listed stocks in the Malaysian market through Bursa Malaysia Bhd.
Head of group equity derivatives at RHB Investment Bank Eric Tan said the bank has been an active issuer of Hong Kong stock warrants on Bursa Malaysia.
There has been growing interest amongst Malaysian retail investors and this has been supported by our on-the-go RHB Warrant Malaysia Telegram channel and numerous interactive investors’ webinars.
In addition to these 10 new Hong Kong stock warrants, he said the bank was working closely with Bursa Malaysia towards listing up to a total of 60 Hong Kong stock warrants from multiple sectors by the end of the year.
“These would further improve accessibility to the performance of Hong Kong traded counters and provide even more investment options for local investors,” Tan said.
He added some of its Hong Kong stock warrants issued on Bursa Malaysia have performed very well.
Tan cited the first Cansino Biologics Inc. stock warrant that was listed in December 2020 climbed by a staggering 553% by its maturity date on June 28, 2021, while the mother share listed in Hong Kong gained 143% over the same period.
“The performance of the Cansino call warrant however owes much to the outstanding performance of its mother share, and we would like investors to note that past performance is not indicative of future performances,” he added.
Tan cautioned the importance for investors to understand the risk involved when investing in warrants as they may experience losses in the event the Hong Kong listed mother shares underperform.