Warrants approved for stock markets

China is set to launch warrant certificates on its stock markets, a move experts say would offer a new financial tool for investors, state media reported. A warrant gives the holder the right to buy or sell a certain number of securities from the issuer at a specific "strike price" within a specific time frame. Yesterday, the Shanghai and Shenzhen stock exchanges published circulars about the warrants stating that the two stock exchanges would closely monitor the trading of warrants and that the strike prices would only be able to fluctuate within a fixed range.