CSOP SK Hynix Daily (2x) Leveraged Product (07709) plummeted 16.80% in pre-market trading on Tuesday, reflecting heightened volatility in leveraged derivative products.

The sharp decline comes amid escalating regulatory concerns from Korean authorities. The Bank of Korea issued a stern warning over the weekend about single-stock leveraged ETFs linked to Samsung Electronics and SK Hynix, stating they could amplify market volatility and exacerbate market concentration. Additionally, Korean lawmakers have publicly called for delisting such products, contributing to negative sentiment.

Further pressure stems from SK Hynix's corporate actions. The company has formally launched its marketing roadshow for a roughly $28 billion ADR listing on Nasdaq, tentatively scheduled for July 10. The planned issuance has raised investor concerns over potential equity dilution. With the underlying SK Hynix stock having closed down 3.38% in the previous session, the 2x leverage mechanism of this product significantly amplified the losses.