BlockBeats News, July 31st. Recently, Southbound A-shares' double long position in SK Hynix became a market focus due to the sharp price fluctuation. As of July 30th, SK Hynix had fallen 49% from its June high, and the net asset value of the double long SK Hynix product had retreated over 80%, with the scale shrinking by about HK$100 billion from HK$130 billion.

After the Securities and Futures Commission of Hong Kong issued new rules last week, on Monday this week, Southbound A-shares announced that starting from August 3rd, leveraged and inverse products linked to 12 popular overseas stocks such as SK Hynix, Samsung Electronics, Tesla, and NVIDIA will be fully transitioned to a "flexible leverage structure."

This move has raised investor concerns because if the manager actively reduces leverage and assuming SK Hynix rebounds rapidly thereafter, the speed of ETF net asset value recovery will significantly slow down, prolonging the breakeven period for those who bought in at high levels.

On the evening of July 30th, Southbound A-shares issued a clarification regarding market concerns about the product transitioning to a "flexible leverage structure" and potentially reducing leverage multiples, stating that under the current market conditions, the product is expected to maintain a two times (2x) leverage, and the fund manager will not make any proactive adjustments to the leverage multiples based on their market outlook. Southbound A-shares emphasized that after the relevant changes take effect, an announcement regarding the target leverage multiple will be released before the market opens on each trading day. Taking this product as an example, this announcement will be issued after the market closes on July 31st, and investors are advised to pay close attention. (21 Finance)