Southern Asset Management has responded to market concerns, noting that its double-leveraged long position on SK Hynix is expected to maintain its double leverage.

Recently, CSOP’s 2x SK Hynix bull product has become a market focus due to sharp price swings. As of July 30, SK Hynix has fallen 49% from its June peak, while the net value of the 2x SK Hynix bull product has suffered a cumulative drawdown of over 80%, with its size shrinking by roughly HK$100 billion from HK$130 billion. After the Securities and Futures Commission (SFC) of Hong Kong released new rules last week, CSOP issued an announcement this Monday stating that starting August 3, all of its leveraged and inverse products linked to 12 popular overseas stocks including SK Hynix, Samsung Electronics, Tesla, and NVIDIA will fully switch to a "flexible leverage structure." This move has sparked investor skepticism, as if the manager actively reduces leverage, should SK Hynix rebound quickly afterward, the ETF’s net value recovery will slow significantly, and the payback period for investors who bought at high levels will be extended. On the evening of July 30, CSOP clarified in response to market questions about the product’s switch to the "flexible leverage structure" and potential leverage reduction, stating that under current market conditions, the product is expected to maintain a 2x leverage, and the fund manager will not make any active adjustments to the leverage multiple based on their own market judgment. CSOP emphasized that after the relevant changes take effect, it will release announcements regarding the target leverage multiple before each trading day opens. Taking this product as an example, the announcement will be issued after the close of trading on July 31, and investors are requested to pay close attention. (Source: 21st Century Business Herald)