Hong Kong 26-Year-Old Trader Misappropriates HK$50 Million to Go Long on Hynix ETF, Resulting in Book Loss of HK$150 Million

According to Odaily Planet Daily, a 26-year-old male trader at Hong Kong's Chee Fu Management Services Limited unauthorizedly misappropriated HK$50 million of the company's funds as margin, using leveraged financing to purchase the CSOP Hynix 2x Leveraged ETF.

Due to the dual leverage of margin financing and the 2x leveraged ETF, the position has resulted in a book loss of approximately HK$150 million. The ETF had surged to an all-time high of HK$193.65 at the end of June before retreating along with the semiconductor sector. As of July 20, it had fallen over 72% to HK$52.58.

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