CWs for HK stocks as at August 2, 2007

Since my latest update on July 19, there were 3 new CWs listed. They are CHALCO-C1, CNOOC-C1 and SHENHUA-C1. These are all non-collateralized American-style cash-settled CW issued by OSK. They were listed on July 31.

Since the last posting on this subject, we have also witnessed a very sharp correction in global equity. Being a leverage instrument, these CWs suffered severely. Once this correction is over, you would likely see a sharp rebounce in these same CWs.

The updated CWs valuation table for Hong Kong stocks is appended below. CWs, which traded at premium of less than 4%, are highlighted in blue.