The CSOP SK Hynix Daily (2x) Leveraged Product (07709.HK) plummeted 9.02% during intraday trading on Friday, reflecting heightened volatility in the leveraged exchange-traded product that tracks the performance of memory chip giant SK Hynix.
The sharp decline was driven by a broad sell-off in Japanese and Korean equity markets, with major indices like the KOSPI and Nikkei 225 both falling approximately 3%. This market weakness particularly impacted memory chip heavyweights including Samsung Electronics, SK Hynix, and Kioxia Holdings, dragging down the leveraged ETF that amplifies SK Hynix's price movements.
Additionally, investor concerns were amplified by SK Hynix's recent disclosure of plans to raise approximately $29.4 billion through an American Depositary Receipt (ADR) issuance on Nasdaq. Market participants worry that such a large-scale overseas fundraising could trigger capital withdrawal from the Korean domestic market. Combined with substantial accumulated gains in SK Hynix shares that had repeatedly hit record highs, some investors opted to lock in profits, adding further downward pressure to the stock and its associated leveraged products.
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