Citigroup Inc. Alibaba Group Warrant

Citigroup Inc. Alibaba Group Warrant is a structured financial derivative known as a derivative warrant, issued by Citigroup, whose performance is linked to the shares of Alibaba Group Holding Limited. As a warrant, this product grants holders the right, but not the obligation, to receive a cash settlement based on the price movement of Alibaba’s underlying stock within a specified time frame. Derivative warrants in Hong Kong, such as this one, typically expire within six months to two years and are most often traded before maturity. They are used primarily for directional exposure, hedging, or leveraging positions on the underlying stock without direct ownership of the shares. As a non-collateralised instrument, the value and liquidity of the warrant depend on both the market price of Alibaba shares and the creditworthiness of the issuer, Citigroup. This structured product plays a significant role in Hong Kong’s financial market by providing investors with an efficient tool for tactical portfolio management and short-term trading strategies, particularly for those seeking exposure to major technology sector equities like Alibaba Group.