The Southern 2x Long hynix ETF (07709) continued its sharp decline, dropping over 12%. As of the latest trading, it was down 12.05% to 28.76 Hong Kong dollars, with trading volume reaching 6.415 billion Hong Kong dollars.
On the news front, SK hynix recently released its financial report for the second quarter of 2026. Operating profit came in at 60.54 trillion South Korean won, compared to 9.2 trillion won in the same period last year, falling short of analyst expectations of 64.22 trillion won. Revenue for the quarter was 79 trillion won, also missing the consensus estimate of 84 trillion won. Analysts suggest that SK hynix missed expectations because its business is more heavily weighted toward high-end memory chips used in AI data centers compared to competitors, meaning it benefited less from the strong price increases in traditional memory chips.
Notably, regulators in Hong Kong and South Korea have recently simultaneously tightened oversight on single-stock leveraged products. The Hong Kong Securities and Futures Commission announced that from August 3rd, the fixed 2x leverage will be replaced with a dynamic leverage mechanism capped at 2x, sparking widespread discussion about investor protection and the investment value of such products. In South Korea, following two consecutive days of circuit breakers, the finance minister issued a public apology and announced further tightening of regulations on single-stock leveraged ETFs, considering setting a cap on individual investors' investment in such products at 20% of their total financial investment assets.
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