Leveraged and Loaded: Hong Kong's SK Hynix Fund Takes a Tumble The recent market volatility has put risk management strategies under scrutiny, particularly those employed by leveraged funds.
The case of CSOP Asset Management's SK Hynix fund is a stark reminder that even flexible leverage structures can fail to mitigate losses when the market turns.
In August, regulators introduced new rules allowing for more flexibility in leverage ratios, increasing them from 1. 1 times to two times.