Hong Kong launches its first single-stock leveraged product in a year, a 1.25x long Kioxia listing

Odaily reports: The CSOP KIOXIA Daily Max 1.25x Leveraged Product, launched by CSOP Asset Management, listed in Hong Kong on Tuesday, marking the first such product in the city since the launch of a single-stock leveraged product on SK Hynix in October 2025, a gap of one year. The product uses swap contracts for synthetic replication, with a target leverage ratio of up to 1.25 times the daily price movement of Kioxia common stock, lower than other single-stock leveraged products in Hong Kong that offer exposure of up to 2 times.

Previously, CSOP's SK Hynix Daily 2x Leveraged Product had at one point become the largest product of its kind globally, with assets under management approaching $17 billion. Such products have sparked market controversy for potentially exacerbating volatility in the underlying stocks and amplifying retail losses, prompting regulators in South Korea and Hong Kong to adjust related rules. Rebecca Sin, an analyst at Bloomberg Intelligence, said that although market demand for leveraged semiconductor exposure remains, retail investors typically favor high-risk products, and moderate-leverage products such as 1.25x or 1.5x may struggle to attract significant market attention.

Kioxia's share price has still more than doubled this year, but amid factors such as investors pulling back from AI-related trades, it has fallen about 75% from its all-time high set in June. (Bloomberg)