Inline Warrants’ Debut On The Hong Kong Stock Exchange

King & Wood Mallesons advised on the launch of a new category of derivatives warrants known as “inline warrants”, the first batch of which has just been launched in Hong Kong.

Inline warrants are expected to be listed on the Hong Kong Stock Exchange (HKEX) on 18 July 2019. The introduction of these new listed structured products is in line with the recommendations set out in the 2017 report on Hong Kong’s listed structured products market published by the Financial Services Development Council. Inline warrants cater for investors’ holding a view that the underlying share price or index level will stay within a pre-set range in order to receive a potential gain of a pre-fixed cash payout at expiry.

The KWM Hong Kong Banking & Finance team advised all participating listed structured products issuers on the establishment of the product, and advised on the legal issues and disclosure documentation. The successful launch of the inline warrants is a tribute to the joint effort made by the HKEX, key market participants and KWM in promoting product innovation and diversification for retail investors in Hong Kong.

This transaction was led by Hong Kong partners Richard Mazzochi (Picture), Minny Siu and Angus Sip.

Involved fees earner: Richard Mazzochi – King & Wood Mallesons; Angus Sip – King & Wood Mallesons; Minny Siu – King & Wood Mallesons;

Law Firms: King & Wood Mallesons;

Clients: Bank of East Asia; BNP Paribas; BOCI Asia Limited; Credit Suisse; Goldman Sachs Structured Products (Asia) Limited; Haitong International Securities Group Limited; HSBC; J.P. Morgan Structured Products B.V.; Macquarie Bank; SG Issuer; UBS AG; Vontobel;

Author: Michael Patrini