CNOOC Ltd. Warrant

CNOOC Ltd. Warrant is a derivative financial instrument linked to the shares of CNOOC Ltd., a major Chinese oil and gas producer. Issued by CITIC Securities Brokerage (HK) Ltd., this warrant is classified as a call warrant and is structured to provide holders with the right—though not the obligation—to participate in the price movement of CNOOC Ltd. shares over a specified period. Derivative warrants like this are short- to medium-term instruments, typically lasting between six months and two years, and are usually settled in cash at expiry if they are in the money. The value of the CNOOC Ltd. Warrant is determined by the price performance of the underlying CNOOC Ltd. shares. These warrants play an important role in the Hong Kong financial market by offering investors exposure to the underlying equity with leveraged potential and a defined risk profile, thus contributing to greater liquidity and flexibility in equity-linked product offerings.