Maybank Investment Bank Berhad (“Maybank IB”) today has begun issuing structured warrants over companies listed on the Hong Kong Stock Exchange (HKEX).
The maiden launch of 16 structured warrants comprises an even combination of call warrants and put warrants over 8 different HKEX-listed stocks. This includes the first ever structured warrants on Bursa Malaysia over NetEase Inc, China’s second largest online game company by revenue.
Other global brands in the maiden launch today are from the automotive and e-commerce sectors, such as Alibaba Group Holding Ltd, JD.com Inc, Geely Automobile Holdings Ltd, Tencent Holdings Ltd, Ganfeng Lithium Co Ltd, Meituan and BYD Company Ltd.
As these warrants are listed on Bursa Malaysia and settled in Ringgit, investors will be able to gain exposure to Hong Kong-listed companies without the need for a foreign trading account or currency conversion. The warrants enable investors to exercise their investment strategies on the underlying stocks with a much lower capital outlay while taking advantage of the leverage effect.
Maybank Investment Bank Investment Management Head Azzahir Azhar said: “As a leading equity- linked structured products issuer in Malaysia, Maybank Investment Bank continues to innovate to satisfy market demand for more sophisticated products to aid in portfolio diversification.
“Today’s launch of warrants over HKEX-listed stocks caters to investors seeking diversified investment instruments and geographical exposure while having the convenience of settling their trades in our local currency.”
Call warrants enable investors to profit from price appreciation of the underlying shares. Put warrants are the opposite whereby they are used to hedge against negative price performance of the underlying shares. The advantage of this call-put issuance is that investors will be able to express their views in either direction.
Investors who are new to structured warrants are advised to understand and evaluate the risks involved and seek professional advice in order to make informed investment decisions.
In conjunction with this launch, Maybank IB will be conducting a webinar on structured warrants investing on Wednesday, 21 September 2022 at 8:00pm. To learn more, visit warrants.maybank2u.com.my and join Maybank IB’s Telegram channel, “Trade With Maybank”.
