Hang Seng Index Warrant

The Hang Seng Index Warrant is a derivative financial instrument that offers investors exposure to the performance of the Hang Seng Index, a key benchmark representing the largest and most influential companies traded in Hong Kong. This particular warrant is structured as a Callable Bull/Bear Contract (CBBC), providing the right, but not the obligation, to benefit from movements in the underlying index without requiring ownership of the constituent stocks. Issued by Guotai Junan Securities (Hong Kong) Ltd., it follows a European exercise style and is cash-settled, allowing for straightforward participation in index gains within a defined period. The warrant features key characteristics such as a set strike level, entitlement ratio, and a mandatory call event, all critical for risk management and trading strategies. Its design supports leveraging or hedging activities by both institutional and individual market participants. With a large issue size and board lot, the Hang Seng Index Warrant plays a significant role in enhancing market liquidity and enabling diverse strategies tied to the broader Hong Kong equity market, which spans finance, utilities, property, and commerce sectors.