BlockBeats report: On July 27, Southern Asset Management announced that, in response to recent revisions by the Hong Kong Securities and Futures Commission to relevant circulars and market developments, several of its leveraged and inverse products will be optimized and adjusted to adopt a flexible leverage structure effective August 3, 2026.
After the adjustment, the product's leverage ratio will be dynamically adjusted daily based on market conditions, with a maximum of 2x or -2x. Products previously offering a fixed 2x leverage will now operate under a "maximum 2x leverage" model, meaning that in extreme market conditions, the actual leverage ratio may decrease to approximately 1.1x.
At the same time, some product names will be adjusted; for example, the "Xtrackers Berkshire Daily Leveraged (2x) Product" will be renamed to the "Xtrackers Berkshire Daily Leveraged Up to (2x) Product".
Southern Dongying stated that the fund manager will announce the target leverage ratio for the next trading day after daily market close; investors should pay attention to changes in the product structure and associated risks.
Industry insiders noted that this adjustment primarily responds to regulatory requirements, aiming to reduce exposure to high-leverage products during extreme market conditions. For investors, the return elasticity of leveraged ETFs in the future may be lower than during the previous period of fixed 2x leverage.