Odaily Planet Daily reports: Recently, the 2x Long SK Hynix (07709.HK) has become a market focus due to extreme price volatility. As of July 30, SK Hynix had declined 49% from its June high, and the net asset value of the 2x Long Hynix product had suffered a cumulative drawdown of over 80%, with its size shrinking by approximately HK$100 billion from HK$130 billion. Following new regulations issued by the Hong Kong Securities and Futures Commission last week, on Monday, Asset Management Corporation announced that, starting August 3, its leveraged and inverse products linked to 12 popular overseas stocks—including SK Hynix, Samsung Electronics, Tesla, and NVIDIA—will fully transition to a "flexible leverage structure." This move has raised investor concerns, as if the manager actively reduces leverage, should SK Hynix rebound sharply afterward, the recovery speed of the ETF’s net asset value will be significantly slower, prolonging the time for investors who bought at higher levels to break even.
On the evening of July 30, Xact ETF clarified market concerns regarding a potential switch to a "flexible leverage structure" and possible reduction in leverage multiple, stating that under current market conditions, the product is expected to maintain a 2x leverage ratio, and the fund manager will not make any active adjustments to the leverage multiple based on their own market judgment. Xact ETF emphasized that, effective after the relevant changes take effect, an announcement regarding the target leverage ratio will be issued prior to the opening of each trading day. For this product, such an announcement will be released after the close of trading on July 31; investors are kindly advised to pay close attention. (21st Century Business Herald)