{"id":128391,"date":"2026-08-22T01:45:05","date_gmt":"2026-08-22T01:45:05","guid":{"rendered":"https:\/\/www.europesays.com\/korea\/128391\/"},"modified":"2026-08-22T01:45:05","modified_gmt":"2026-08-22T01:45:05","slug":"why-hong-kongs-sk-hynix-fund-stayed-at-full-leverage-amid-market-volatility","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/korea\/128391\/","title":{"rendered":"Why Hong Kong\u2019s SK Hynix fund stayed at full leverage amid market volatility"},"content":{"rendered":"<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">South Korean investor Carol Kim thought Hong Kong-based CSOP Asset Management\u2019s 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 rules.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cI expected the flexible leverage structure to soften the blow, but it actually felt like it was dropping even harder than the product in South Korea,\u201d the 32-year-old Seoul-based retail investor said.<\/p>\n<p>The CSOP SK Hynix Daily Max (2x) Leveraged Product became a <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/business\/banking-finance\/article\/3357851\/south-korean-investors-leverage-hong-kong-cash-ai-and-chips-boom?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">major draw for traders<\/a> earlier this year, surging alongside the chipmaker\u2019s underlying stock, which jumped 349.23 per cent from the start of 2026 to its peak on June 22.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Then, on August 3, the fund adjusted its structure. Instead of a fixed leverage model, it adopted a flexible ratio ranging from 1.1 times to two times. This was designed as a structural buffer, allowing fund managers to reduce exposure during sharp sell-offs and help mitigate portfolio volatility in extreme market downturns.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Even so, CSOP\u2019s daily disclosures showed the fund maintained its maximum double-exposure limit every trading day for three weeks after the change.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">In its first week under the new structure, the CSOP Hynix product fell 26.9 per cent as its share price dropped from HK$42.52 (US$5.42) to HK$31.06, while weekly turnover plunged 44.6 per cent week on week to HK$40.15 billion (US$5.12 billion).<\/p>\n","protected":false},"excerpt":{"rendered":"South Korean investor Carol Kim thought Hong Kong-based CSOP Asset Management\u2019s new flexible leverage structure would cushion losses&hellip;\n","protected":false},"author":2,"featured_media":128392,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[65646,6750,19018,65647,1958,65648,11701,276,26482,241,240,275,2784,33],"class_list":["post-128391","post","type-post","status-publish","format-standard","has-post-thumbnail","category-sk","tag-carol-kim","tag-csop","tag-csop-asset-management","tag-csop-sk-hynix-daily-max-x-leveraged-product","tag-hong-kong","tag-jackie-choy","tag-morningstar","tag-samsung-electronics","tag-securities-and-futures-commission","tag-sk","tag-sk-group","tag-sk-hynix","tag-south-china-morning-post","tag-south-korea"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/128391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=128391"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/128391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/128392"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=128391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=128391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=128391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}