A 26-year-old male trader at Hong Kong-based Bright Smart Management Services Co. Ltd. allegedly used HK$50 million of company funds without authorization as margin and then used financing leverage to buy the CSOP 2x Long Hynix ETF, according to Odaily, citing Tencent News. The position showed a paper loss of about HK$150 million because it combined margin financing with a 2x leveraged long exchange-traded fund. The ETF had climbed to a record HK$193.65 in late June before retreating with the broader semiconductor sector. As of July 20, it had fallen more than 72% to HK$52.58. Police have arrested the trader on suspicion of theft. The position has not yet been closed, meaning the final loss will still change with price moves.
According to Odaily, citing Tencent News, a 26-year-old male trader at Hong Kong-based Bright Smart Management Services Co. Ltd. allegedly used HK$50 million of company funds without authorization as margin and bought the CSOP 2x Long Hynix ETF through financing leverage.
The position showed a paper loss of about HK$150 million because it combined margin financing with a 2x leveraged long ETF. The fund rose to a record HK$193.65 in late June, then pulled back with the semiconductor sector. As of July 20, it was down more than 72% at HK$52.58.
Police have arrested the trader on suspicion of theft. The position remains open, so the final loss will still depend on future price moves.
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