CSOP Responds to Market Concerns: Expects 2x Long SK Hynix to Maintain 2x Leverage

TechFlow news, July 31. Recently, CSOP 2x Long SK Hynix (07709.HK) has become a market focus due to severe price volatility. As of July 30, SK Hynix has fallen cumulatively by 49% from its June high, and the net asset value of the 2x Long SK Hynix product has drawn down by over 80%, with its size shrinking from 130 billion Hong Kong dollars by approximately 100 billion Hong Kong dollars. Following the new regulations issued by the Hong Kong SFC last week, CSOP announced this Monday that starting from August 3, its leveraged and inverse products linked to 12 popular overseas individual stocks including SK Hynix, Samsung Electronics, Tesla, and NVIDIA will fully switch to a "flexible leverage structure."

This move has triggered investor skepticism, because if the manager actively reduces leverage, assuming SK Hynix rebounds quickly subsequently, the speed of ETF net value recovery will significantly slow down, and the break-even period for those who bought at high levels will become longer. On the evening of July 30, CSOP clarified doubts regarding the market's concerns about the product switching to a "flexible leverage structure" and potentially reducing leverage multiples, stating that under current market conditions, the product is expected to maintain 2x (2x) leverage, and the fund manager will not make any active adjustments to the leverage multiple based on their own market judgments. CSOP emphasized that after the relevant changes take effect, announcements regarding the target leverage multiple will be released before the market opens on each trading day. Taking this product as an example, the announcement will be issued after the market close on July 31. Investors are advised to pay close attention. (Jin10)