Many B Shares investors are overseas investors and the B shares are usually offered through private placements. But in the securities laws of many countries those private placed shares are defined as publicly offered share capital. Therefore, investors from many countries are unable to participate in the rights issues of B Shares listed companies. The establishment of warrant for rights issue is an important measure to safeguard the lawful rights and interests of overseas B Share investors.Attention should be given to the following main points for rights issue warrants transaction:

1. After rights registration day, the share accounts of investors buying or holding shares before ex-right day will be cum the rights issue warrants according to the rights issue ratio, i.e., if the rights issue ratio is 2/10, then an account with 1000 shares in will be cum 200 warrants.
2. If the holder does not want to pay to get the rights issue, he can sell his warrants. The rights issue warrants can only be traded during a stipulated period, which last generally for 5-10 trading days;
3. If the investors with rights issue warrants want to have the rights shares, they can pay the corresponding sum for the rights issues within the prescribed period;
4. For investors wishing to obtain the rights shares, the receiving bank will send a notification to the investor according to the address the investor has given when opening a share trading account. After completing the application, investors should hand this to their designated clearing member and prepare sufficient funds for the placed shares inside their share accounts one day before the final day for payment. Their agents will transfer the payment due for the rights shares to the receiving bank on the last payment day.
5. Trading in the newly placed shares can only begin on the prescribed listing date of the new shares.
6. The theoretical price of placed shares = closingprice of the last trading day - ex-rights quotation.