Citigroup Inc. Alibaba Group Warrant

Citigroup Inc. Alibaba Group Warrant is a structured financial product issued by Citigroup Inc., referencing shares of Alibaba Group as its underlying asset. Classified as a derivative warrant, this instrument grants holders the right—but not the obligation—to acquire or dispose of the underlying Alibaba Group shares at a predetermined exercise price upon expiry. As is standard for derivative warrants listed in Hong Kong, it is European style, meaning it can only be exercised at expiration, and settlement is conducted in cash rather than physical delivery of the shares. The warrant’s key purpose is to provide investors with leveraged exposure to the price movements of Alibaba Group stock. Because the warrant’s price typically represents only a fraction of the underlying share price, it enables market participants to gain directional or volatility-focused exposure with a lower initial outlay. The product is traded independently on the secondary market and offers a flexible holding period within its set lifespan, which generally ranges from six months to several years. It serves not only for directional trading but also as a tool for volatility strategies or hedging existing positions. Issued by a major global financial institution, this warrant is a prominent example of Hong Kong’s active and diverse derivative warrant market, which supports dynamic equity-linked investment strategies.