{
  "id": 2464788,
  "title": "Why Hong Kong’s SK Hynix fund stayed at full leverage amid market volatility",
  "url": "https://urgent.news/2026/08/22/why-hong-kongs-sk-hynix-fund-stayed-at-full-leverage-amid-market",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-22T01:00:14.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/business/banking-finance/article/3364860/why-hong-kongs-sk-hynix-fund-stayed-full-leverage-amid-market-volatility"
  },
  "original_language": "en",
  "account": "South Korean investor Carol Kim was initially optimistic about Hong Kong-based CSOP Asset Management's new flexible leverage structure for its SK Hynix leveraged fund. However, her expectations were dashed when the fund maintained maximum exposure despite the revised rules. Kim, who had invested in the product since October, saw a 77.2 percent loss in her Hong Kong investment, far exceeding her domestic position loss of 70.1 percent. The CSOP SK Hynix Daily Max (2x) Leveraged Product became popular earlier this year, experiencing a surge that mirrored the chipmaker's stock price, which increased by 349.23 percent from the start of 2026 to its peak on June 22. However, on August 3, the fund adjusted its structure, shifting from a fixed 2x leverage model to a flexible ratio ranging from 1.1 times to two times. This adjustment was intended to provide a buffer, permitting fund managers to reduce exposure during sharp sell-offs and mitigate portfolio volatility during extreme market downturns. Despite this change, CSOP disclosed that the fund continued to maintain its maximum double-exposure limit for three weeks following the modification. Subsequently, the fund's value plummeted by 26.9 percent during its first week under the new structure and declined by a further 44.6 percent in weekly turnover to HK$40.15 billion (US$5.12 billion). By Thursday, total assets under management had shrunk by nearly 71.5 percent to HK$37.65 billion (US$4.53 billion). The sustained high exposure exacerbated Kim's losses, bringing her total exposure to 77.2 percent, far exceeding her domestic losses.",
  "summary": "South Korean investor Carol Kim thought Hong Kong-based CSOP Asset Management’s new flexible leverage structure would cushion losses in its SK Hynix leveraged product, only to take a 77.2 per cent hit after the fund maintained its maximum exposure every day following the revised rules. “I expected the flexible leverage structure to soften the blow, but it actually felt like it was dropping even…",
  "key_points": [
    "CSOP Asset Management maintained full leverage (2x) despite market volatility",
    "Fund's value dropped 71.5% to HK$37.65 billion after new structure",
    "Investor Carol Kim lost 77.2% in Hong Kong investment"
  ],
  "editors_take": "The fund's decision to stay at full leverage despite introducing a flexible structure means investors like Carol Kim continued to face extreme volatility, exacerbating their losses in the already turbulent market.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "SCMP Business",
        "title": "Why Hong Kong’s SK Hynix fund stayed at full leverage amid market volatility",
        "url": "https://urgent.news/2026/08/22/why-hong-kongs-sk-hynix-fund-stayed-at-full-leverage-amid-market-2468976",
        "published": "2026-08-22T01:00:14.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}