Leo Zhang/Shanghai Daily news

Shanghai shares rose yesterday, led by companies that have issued or plan to launch warrants amid optimism brokers may buy their shares in order to market warrants based on the equities.
The Shanghai Composite Index, which groups both yuan-denominated A shares and hard-currency B shares, gained 0.64 percent at 1,112.80. The A-share index added 0.65 percent to 1,169.66 while the B-share index eased 0.29 percent to 62.01.
"It's natural to anticipate that securities companies would buy the equities so as to issue warrants based on them," said Liu Yu, an Orient Securities Co trader. "The optimism cheered yesterday's market and may spill over through next week."
China this week allowed 13 select brokerages to issue warrants based on listed companies' shares in a move to boost trade in derivatives.
In August, the country reintroduced warrants after a 10-year suspension as part of plans to unload as much as US$250 billion of mostly state-held equities in listed companies.
Wuhan Iron & Steel Co, the country's third biggest steelmaker, rose 0.72 percent to 2.79 yuan (34 US cents). Baoshan Iron & Steel Co, the nation's biggest, added 1.27 percent to 4.00 yuan. They are the only two companies that have pushed forward warrants on the Shanghai Stock Exchange.
A total of five firms, including China Yangtze Power Co, announced plans to issue more than 3 billion units of warrants, according to separate corporate filings. Yangtze Power, operator of the Three Gorges Dam, surged 2.71 percent to 7.20 yuan.