CWs for HK stocks

There has been a few more listing of new CWs for Hong Kong stocks since my last posting in June. I have posted here an update for your guidance. Two CWs in particular are trading at a discount or at very low premium. They are HKEX-C1 and CCCC-C1. The former has been running up since the underlying share has a breakout in the middle of June ( see my post here). CCCC-C1 is a fairly new CW, only listed on July 5. The underlying share, CCCC has been on a strong uptrend since its listing in November last year (traded initially at HK$6.00). CCCC (closed at HK$17.78 today) has gained about HK$7.00 or 65% in the past 1 month alone. The attractive pricing of both HKEX-C1 and CCCC-C1 may reflect investors' cautious stance.



Looking at the above table, there are a few things that I like to point out. They are:

1. For the purpose of computing the premium of the CW, I have used the exercise price stated in RM or RM equivalent. The exercise price highlighted in yellow is as per the Term Sheet. The exercise price stated in HK$ is converted to the RM equivalent at an exchange rate of HK$1=RM0.44.
2. The market prices to be plugged in are highlighted in green. They are the underlying share price, which has been extracted from the HKEX website and the CW price, which is available from the Bursa website. The former will then be converted to RM equivalent at the same exchange rate as (1) above.
   
3. For informational purposes, the IPO price of these CW & the underlying stock code are given. To check on the prices of the underlying share, you need to go here.