Hong Kong-based CSOP Asset Management has announced a shift to a flexible leverage framework for 12 of its exchange-traded funds, including products tracking Samsung Electronics and SK Hynix.
The move comes as market volatility in the semiconductor sector intensifies, prompting asset managers to recalibrate risk exposure for leveraged products.
The decision by CSOP follows a sharp regulatory intervention in South Korea, where financial authorities mandated a fivefold increase in margin requirements for leveraged ETFs.
That policy shift was designed to cool speculative trading in the semiconductor sector, which had seen a surge in retail and institutional interest driven by AI-related demand.
The launch of leveraged ETFs tied to SK Hynix had previously signaled an escalation in speculative appetite for the memory chip giant, reflecting Wall Street’s broader hunger for AI-linked risk.
By adopting a flexible leverage model, CSOP aims to manage the heightened uncertainty surrounding these high-beta instruments.