China's top steel mill Baosteel will pioneer the issue of warrants in the country, the first financial derivatives launched by mainland markets since 1995, adding depth to the fledgling sector.

The launch of warrants as part of its state share reform program will take place in two weeks.

Baosteel was among the more than 40 firms selected in June to lead China's efforts to sell over US$200 billion worth of shares in listed firms. The steel mill has promised to offer public stockholders 2.2 shares for every 10 held as compensation.

Shareholders will also receive warrants -- instruments that give the holder the right but not the obligation to buy or sell securities at an agreed price over a certain period.

(CCTV.com August 8, 2005)