The Hong Kong Securities Regulatory Commission issued a revised circular today to stipulate that leveraged and inverse products whose capacity is highly affected by changes in market conditions must adopt a flexible leverage structure. Under this structure, the leverage ratio can be adjusted daily within the existing limit. Therefore, product providers can lower the target leverage ratio for such products when necessary, so that they have more room to manage products during periods of high trading volume. The leverage ratio for these products on the next trading day will be disclosed after the daily market closes. The potential daily adjustment of the leverage ratio also helps to deepen investors' understanding that leveraged and inverse products are single-day products, reminding investors that such products are not suitable for holding such products for more than one day.

Zhitongcaijing · 2d ago
The Hong Kong Securities Regulatory Commission issued a revised circular today to stipulate that leveraged and inverse products whose capacity is highly affected by changes in market conditions must adopt a flexible leverage structure. Under this structure, the leverage ratio can be adjusted daily within the existing limit. Therefore, product providers can lower the target leverage ratio for such products when necessary, so that they have more room to manage products during periods of high trading volume. The leverage ratio for these products on the next trading day will be disclosed after the daily market closes. The potential daily adjustment of the leverage ratio also helps to deepen investors' understanding that leveraged and inverse products are single-day products, reminding investors that such products are not suitable for holding such products for more than one day.