A 26-year-old male trader at Hong Kong Tse Fu Management Services allegedly used HK$50 million in company funds as margin to buy a 2x long SK Hynix ETF through financing leverage.
A 26-year-old male trader at Hong Kong Tse Fu Management Services allegedly used HK$50 million in company funds without authorization as margin for a leveraged bet on the CSOP 2x Long Hynix ETF, leaving a paper loss of about HK$150 million. The position amplified risk through two layers of leverage: margin financing and a 2x long ETF (an exchange-traded fund designed to magnify daily moves). The source said the ETF had risen to a record high of 193.65 at the end of June, underscoring how quickly losses can build when leveraged products move against a position.