Jan. 4, 2007 (China Knowledge) – The warrant market in the China mainland overtook Hong Kong’s to become the world’s most active last year as investor demand for derivative products outstripped supply, according to Goldman Sachs (Asia).

Turnover in China's warrants market hit US$243.9 billion, surpassing Hong Kong's US$230.4 billion. The Mainland market's turnover last year was almost eight times the combined sales in the last five months of 2005, and compared with 109% year-on-year growth in Hong Kong's turnover.

China introduced warrants in August 2005 as part of the share reform under which non-tradable state-owned shares were converted into common shares.

Hong Kong had been the most active warrants market in the world for several years, followed by Germany and Italy.