CSOP SK Hynix Daily Leverage (2x) Product (07709) has seen its market value drop below 28 billion HKD, evaporating over 100 billion HKD from its peak of 130 billion HKD. As of the time of writing, it fell 9.98% to 27.96 HKD, with a trading volume of 43.42 billion HKD.
On the news front, Hong Kong regulators previously introduced "flexible leverage," and CSOP subsequently announced that from August 3, 12 offshore individual stock leverage and inverse products, including SK hynix, Samsung Electronics, Nvidia, and Tesla, will fully adopt the "flexible leverage" mechanism. On the evening of July 30, CSOP issued a clarification, stating that under current market conditions, the product is expected to maintain two times (2x) leverage, and the fund manager will not actively adjust the leverage ratio based on market judgments.
Notably, a recent report from CLSA indicates that SK hynix has announced it will actively review measures to enhance shareholder value and will release more details in the third quarter. This move follows investor dissatisfaction with a lack of clear capital allocation guidance during its Q2 2026 earnings call, which may have contributed to recent stock weakness. Given strong profitability and free cash flow through 2028, the bank believes shareholder returns in 2026 could exceed 100 trillion won, significantly boosting shareholder value and potentially serving as a catalyst for stock repricing.
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