Adjustment Mechanism for Multiple Leveraged and Inverse Products by CSOP: Fixed 2x Leverage Changed to Maximum 2x

BlockBeats News, July 27 – CSOP announced that in response to the Hong Kong Securities and Futures Commission's recent revisions to relevant circulars and market changes, several of its leveraged and inverse products will undergo optimization and adjustments starting from August 3, 2026, adopting a flexible leverage structure. After the adjustment, the leverage ratio of the products will be dynamically adjusted daily based on market conditions, with a maximum of 2x or -2x. Previously fixed 2x leverage products will be changed to a "maximum 2x leverage" model, meaning that in extreme market conditions, the actual leverage ratio may decrease to around 1.1x. Additionally, some product names will also be adjusted. For example, the "CSOP Berkshire Daily Leveraged (2x) Product" will be renamed to "CSOP Berkshire Daily Leveraged Maximum (2x) Product." CSOP stated that fund managers will announce the target leverage ratio for the next trading day after the market closes each day, and investors should pay attention to changes in product structure and associated risks. Industry insiders pointed out that this adjustment primarily responds to regulatory requirements and aims to reduce the risk exposure of high-leverage products during extreme market conditions. For investors, the return elasticity of leveraged ETFs in the future may be lower than during the previous fixed 2x leverage period. [Original Link]