On July 20, CSOP Samsung Electronics 2x Leveraged ETF (07747.HK) surged 21.4% in regular trading, reaching HKD 81.44, with turnover of HKD 225 million. The product staged a powerful rebound after suffering consecutive sharp declines totaling over 50% in prior trading sessions.
The rally was primarily driven by the dissipation of regulatory uncertainty following the Korean Financial Services Commission's formal announcement on July 16 of comprehensive measures targeting single-stock leveraged ETFs. The new regulations include raising the minimum margin requirement from KRW 10 million to KRW 30 million (effective August 5), restricting purchases to 20 shares per transaction, and suspending listings of new single-stock leveraged products until market conditions stabilize.
The policy landing removed a key overhang that had weighed on sentiment since early July, when Korean authorities signaled an impending crackdown amid concerns that leveraged ETFs linked to Samsung Electronics and SK Hynix were amplifying market volatility. With the regulatory framework now clearly defined, the extreme oversold condition triggered a sharp technical rebound.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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