The Organization of the Petroleum Exporting Countries and non-oil group oil producers reached an agreement to limit production for the first time since 2001, 11 non-OPEC producers will cut production by 558,000 barrels per day. The news stimulated oil prices rose sharply, in the early part of the Asian market rose sharply by more than half a percent. A number of oil and petrochemical stocks driven by the good, but the rise is relatively mild compared to oil prices, "three barrels of oil" this morning against the market rose more than 1%. Technical level, PetroChina (00857) 50 antenna is an upward trend, the stock price for 8 consecutive days are in the 50 antenna on the force, technical resistance can pay attention to the October high of 5.72 yuan.

　　According to HSBC website information, although the H and A shares are the same stock with the same right, CNPC's current H shares to A shares discount of up to 57%, that H shares than A shares price is nearly 60% lower. If oil prices and the southward flow of water from the north are expected to continue to favor PetroChina's performance, you can pay attention to PetroChina Bull Certificate 65751, with a recovery price of $4.86, expiring in June next year, and an actual leverage of 6.1 times. If you are bearish on PetroChina, you can pay attention to CNOOC Bear CBBC 62255, call price $5.86, expires in March next year, with 8.7 times actual leverage.

　　HSBC Rotating Warrant Focus:

　　Haiyang Call Warrant 27527 (strike price $10.9/expires in May 2018/actual leverage 3.7x)

　　Haiyang Put Warrant 26812 (strike price $8.49 / expires in November 2017 / actual leverage 4.0x)

　　Haiyang Bull 63821 (Strike price $9.48 / Call price $9.68 / Expires in July 2017 / Effective leverage 10.2x)

　　Haiyang Bear Warrant 66190 (Strike price $11.36 / Call price $11.16 / Expires Feb 2017 / 9.0x actual leverage)

　　CNOOC Call Warrant 13791 (Strike price $5.73 / Expires March 2017 / Effective leverage 11.7x)

　　CNOOC Bull Warrant 65751 (Strike price $4.66 / Call price $4.86 / Expires June 2017 / 6.1x actual leverage)

　　CNOOC Bear 62255 (Strike price $6.06 / Call price $5.86 / Expires in March 2017 / 8.7x actual leverage)

　　Update date and time:12/12/2016 11:15am

　　For details, please visit www.warrants.hsbc.com.hk查询

　　This document is issued by The Hongkong and Shanghai Banking Corporation Limited (the "Bank" or the "Issuer") (including any reference terms) for information purposes only.

　　This is a structured product involving derivative instruments. Do not invest in this product unless you fully understand and are willing to bear the risks involved.

　　This product is not collateralized and investors may not be able to recover some or all of the receivables in the event of insolvency or default of the issuer.

　　This document is issued by The Hongkong and Shanghai Banking Corporation Limited (the Bank) for information purposes only and does not constitute an offer, solicitation, or recommendation to sell or purchase structured products. Prices of structured products may go up or down rapidly and investors may lose all their investments. Past performance is not indicative of future performance. Before investing, you should understand the features and risks of structured products, read the listing documents and decide independently whether they are suitable for you, and seek professional advice if necessary.

　　The author of this document, Mr. Lau Ka Fai, Co-Director, Institutional Clients and Wealth Management Sales Asia, HSBC Global Capital Markets, is licensed by the HKMA and the SFC and does not hold any direct or indirect interest in the structured products or the underlying assets.