On July 2, CSOP 2x Leveraged SK Hynix (07709) fell 20.23% in regular trading, trading at 120.15 HKD/share, with turnover of 2.629 billion HKD.

On the news front, the leveraged ETF has ballooned to approximately $130 billion in assets, making it the world's largest single-stock leveraged ETF. As capital has become highly concentrated and trading extremely crowded, banks have curtailed services due to risk exposure limits, causing hedging costs to surge from approximately 3% in March to over 10%, directly eroding fund performance.

Analysts warn that one-sided positioning has created a self-reinforcing feedback loop, whereby mechanical rebalancing by the ETF triggers rapid forced selling once market momentum reverses. Goldman Sachs has noted that massive capital inflows into leveraged ETFs have pushed dealers' capacity to provide exposure to popular names to their limits. Regulators have also expressed concern over leveraged ETFs amplifying market volatility. These multiple factors converged to drive the sharp decline.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)