Covered warrant: Cautious sentiment

Although liquidity in the covered warrant market declined slightly during the week, the number of advancing warrants continued to dominate. This development suggests that capital flows became more selective, concentrating on warrants backed by assets with solid fundamentals and positive prospects, while also indicating that investor sentiment remains relatively optimistic despite a more cautious level of overall participation. According to valuations based on the Black-Scholes model, several CWs are currently undervalued, with CVJC2507, CVRE2527, and CHDB2510 being the most notable examples. In contrast, CVIC2516, CMWG2602, and CTCB2521 were assessed to be overvalued, based on a total sample of 325 listed CWs.