🔴 7709.HK is trading 10.6% down today amid regulatory tightening and a shift to a flexible leverage framework

7709.HK is trading 10.6% down today as regulators in Hong Kong and South Korea tighten rules on single-stock leveraged products.

• CSOP is transitioning the ETF to a new flexible leverage framework effective August 3, which will reduce its amplification of SK Hynix price movements.
• The product is experiencing significant de-risking driven by heavy rebalancing flows and recent sharp volatility in the underlying SK Hynix stock following its earnings report.