Here is an updated list of Hong Kong call warrants sorted from the lowest premium to the highest. As you can see from the list, CCCC-C1 is having the lowest premium of 0.27% which is nearly at par with its underlying share's value. The lower the premium, the better (or cheaper) the CW is. CWs with longer expiry period usually have a higher premium compared to the ones which are close to expiry (This is also referred to as the time value).The orange column shows the theoretical price of the underlying share using current CW price at zero percent premium.
CCCC-C1 with the lowest premium (0.27%) only needs its underlying share price to move up by 4 cents (15.62 - 15.58) to be at par value.
On the other hand, CCCC-C3 which is having the highest premium (24.93%) would need a 3.88 HKD (19.46 - 15.58) increase on CCCC's share price.
At current market condition, a premium of 5% to 10% would be considered fair.
The average premium of all the CWs is 8.58%. This can be used as the benchmark.
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