KUALA LUMPUR: RHB Investment Bank Bhd has issued 10 new structured warrants tied to Chinese companies listed on the Hong Kong Exchange (HKEX) to cater to the needs of increasingly diverse and sophisticated Malaysian investors.
The new stock warrants, which cover a number of Chinese companies including China Longyuan Power Group Corp Ltd, Xinyi Solar Holdings Ltd and Ganfeng Lithium Co Ltd, leverages on the environmental, social and governance (ESG) element with renewable energy and new energy vehicle as the main themes.
“This issuance amplifies RHB Banking Group’s sustainability journey focusing towards channelling more ESG and green investment, while providing new avenues for retail investors to be part of such transition,” it said in a statement yesterday.
The structured call warrants were listed and traded on Bursa Malaysia starting yesterday, allowing investors lower cost of entry to the performance of Hong Kong-traded shares and the convenience without the need of a foreign trading account.
RHB Investment Bank head of group equity derivatives Eric Tan noted that there has been growing interest among Malaysian retail investors for Hong Kong-traded shares and this demand has been supported by RHB Warrant Malaysia Telegram channel and interactive webinars.
The bank is currently working with Bursa Malaysia towards the listing of up to 60 Hong Kong stock warrants from multiple sectors by the end of the year.
“Some of our Hong Kong stock warrants issued on Bursa Malaysia have performed very well.
“For instance, 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,” Tan added.
He also cautioned 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.