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What is the mandatory recall event for bull and bear contracts?
There are conditions attached to the issuance of a CBBC: during the validity period of the CBBC, if the price of the relevant asset reaches the price level specified in the listing document (referred to as the "buyback price"), the issuer will immediately take back the CBBC, which means that the original expiration date of the listing document will no longer be valid, and the CBBC will only have residual value. This makes the pricing mechanism of bull and bear contracts significantly different from that of warrants.
 
For example, a bull certificate with Tencent as the subject matter has a designated recycling price of 330 yuan. Assuming Tencent's stock price is 340 yuan, when it falls to 330 yuan, it triggers a mandatory buyback event, and the bull certificate will be reclaimed by the issuer, ultimately retaining only the remaining value.