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SK Hynix fund's full leverage strategy leads to investor losses

A leveraged fund focused on SK Hynix shares in Hong Kong maintained maximum exposure despite market volatility, leading to significant losses for investors. The fund, managed by CSOP Asset Management, adopted a new flexible leverage structure designed to mitigate losses during market downturns. However, for three weeks after the rule change, the fund consistently operated at its highest leverage limit, resulting in a 77.2% loss for at least one retail investor. AI

IMPACT This event highlights risks associated with leveraged investment products in volatile markets, particularly those tied to semiconductor stocks.

RANK_REASON The article discusses a specific financial product's performance and management strategy, not a core AI release or significant industry shift.

Read on SCMP — Tech →

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SK Hynix fund's full leverage strategy leads to investor losses

COVERAGE [1]

  1. SCMP — Tech TIER_1 English(EN) · Judy Xue ·

    Why Hong Kong’s SK Hynix fund stayed at full leverage amid market volatility

    South Korean investor Carol Kim thought Hong Kong-based CSOP Asset Management’s new flexible leverage structure would cushion losses in its SK Hynix leveraged product, only to take a 77.2 per cent hit after the fund maintained its maximum exposure every day following the revised …