Hong Kong 26-year-old trader misappropriates HK$50 million to go long on Hynix ETF, with paper losses of HK$150 million

Odaily Planet Daily News A 26-year-old male trader at Hong Kong's Chefu Management Services Limited, without authorization, misappropriated HK$50 million of company funds as margin to purchase the CSOP two times long Hynix ETF through leveraged financing.

Due to the double leverage from margin financing and the 2x long ETF, the position incurred a paper loss of approximately HK$150 million. The ETF had previously surged to an all-time high of HK$193.65 at the end of June, before retreating along with the semiconductor sector, dropping over 72% to HK$52.58 as of July 20.

Currently, the trader has been arrested by police on suspicion of "theft." Since the position has not yet been closed, the final loss will continue to fluctuate with price movements. (Tencent News)