Citigroup Inc. Warrant

Citigroup Inc. Warrant is a structured financial derivative issued by Citigroup Global Markets Europe AG, designed to offer investors leveraged exposure to the price movements of an underlying asset—in this case, shares of Alibaba Group Holding Limited. As a derivative warrant, it allows holders the right, but not the obligation, to buy (call warrant) or sell (put warrant) the underlying asset at a specified strike price on or before a set expiry date, depending on the warrant's terms. This particular warrant is non-collateralised, meaning it is unsecured and subject to the issuer’s credit risk, and investors could face a total loss in the event of issuer default. The Citigroup Inc. Warrant plays an important role in the Hong Kong financial market by enabling sophisticated investors to hedge existing positions or speculate on the directional movement of Alibaba’s share price with amplified returns and managed capital outlay. These warrants are typically used for short- to medium-term trading strategies given their limited lifespan and the potential for rapid changes in value. Citigroup acts as the primary liquidity provider for this instrument, helping to facilitate active trading and price discovery within the warrant market.