Southern Eastspring Fund Announcement: Leveraged and Inverse Products Linked to SK Hynix, Coinbase, and 12 Other Stocks to Adopt Flexible Leverage Structure

Deep Tide TechFlow reports that on August 3, Southern Eastspring Fund issued an announcement stating that a total of 12 leveraged and inverse products under its management, linked to stocks in the South Korean market such as SK Hynix and Samsung Electronics, as well as U.S. stocks like Tesla, NVIDIA, and Coinbase, will adopt a flexible leverage structure starting August 3. Under this structure, the leverage ratio for each leveraged product or inverse product will be adjusted based on market conditions, with the leverage ratio capped at a maximum of 2x (for leveraged products) or -2x (for inverse products). Southern Eastspring Fund explained that as passive investment products, the adjustment of leverage ratios for these leveraged and inverse products primarily considers capacity limitations or cost factors. The flexible leverage structure is designed to address extreme market conditions, such as when the scale of related leveraged or inverse products surges significantly, leading to capacity constraints or sharply rising operational costs, making it impossible to maintain the original target leverage. The leverage ratio for each trading day will be announced before market opening via the official website or the Hong Kong Stock Exchange website. In extreme cases, the target leverage ratio for leveraged products may be reduced to a minimum of 1.1x, while the leverage ratio for inverse products may be adjusted to 1.1x.