Southern Dongying responds to market doubts: Hynix is expected to be twice as long as it maintains twice as leverage

On July 31, recently, South Dongying doubled the long Hynix (07709.HK) became the focus of the market due to sharp price fluctuations. As of July 30, SK Hynix has fallen by 49% from its June high. The net value of Hynix's products, which is twice the long, has retreated by more than 80%, and its scale has shrunk by about 100 billion Hong Kong dollars from 130 billion Hong Kong dollars. After the Hong Kong Securities and Futures Commission issued new regulations last week, Southern Dongying issued an announcement on Monday, announcing that starting from August 3, its leverage and reverse products will be fully switched to a "flexible leverage structure" for 12 popular overseas stocks including SK Hynix, Samsung Electronics, Tesla, and Nvidia. This move has aroused doubts from investors, because if managers take the initiative to reduce leverage, assuming that SK Hynix rebounds rapidly in the future, the repair speed of ETF net worth will be significantly slower, and the payback cycle for high-level purchases will become longer. On the evening of July 30, Nanfang Dongying clarified the market's doubts that the product would switch to a "flexible leverage structure" and possibly reduce the leverage ratio, saying that under current market conditions, the product is expected to maintain double (2x) leverage, fund managers will not make any proactive adjustments to the leverage ratio based on their own judgment on the market. Nanfang Dongying emphasized that since the relevant changes take effect, an announcement on the target leverage multiple will be issued before the market opens on each trading day. Taking this product as an example, the announcement will be issued after the market closes on July 31, so investors are kindly advised to pay close attention. (21 Finance and Economics)