The CSOP Hang Seng TECH Index Daily (2x) Leveraged Product (07226) experienced a significant plunge of 5.05% in Friday's trading session, reflecting amplified losses in the broader technology sector. This sharp decline can be attributed to a widespread sell-off across various tech-related industries, including e-commerce, electric vehicles, and lithium battery manufacturers.
Leading the downturn, Alibaba Group (09988) saw its stock fall over 3% in morning trading, with JPMorgan warning of potential pressure on adjusted earnings due to aggressive investments in AI and instant retail. The electric vehicle and lithium sectors also faced considerable headwinds, with CATL (03750) dropping more than 6% and other lithium stocks following suit. Industry analysts point to ongoing supply-demand imbalances in the lithium market as a key factor behind the sector's weakness.
The leveraged nature of the CSOP Hang Seng TECH Index product magnifies the impact of these sector-wide declines, resulting in its more pronounced 5.05% drop. This performance underscores the high-risk, high-volatility characteristics of leveraged ETFs, especially in times of market turbulence. Investors in such products are reminded of the potential for amplified losses when the underlying index experiences downward movements.