Hang Seng Index Warrant 56267

Hang Seng Index Warrant 56267 is a type of derivative financial instrument known as a Callable Bull/Bear Contract (CBBC), specifically structured as a bear contract, linked to the performance of the Hang Seng Index. This warrant enables holders to gain leveraged exposure to downward movements in the Hang Seng Index, amplifying changes in the underlying index value relative to the invested capital. Notable features of this contract include a fixed maturity date of December 30, 2027, a call level set at 26,400, a strike price of 26,500, and an entitlement ratio of 10,000, determining the number of warrants required to exercise a claim on the underlying value. Hang Seng Index CBBCs like this are typically used by market participants for hedging purposes or for expressing tactical views on index declines, and they play a significant role in enhancing market liquidity and providing alternative strategies for risk management and speculative activity within the Hong Kong financial markets.