Hong Kong’s SFC issued a revised circular requiring leveraged and inverse products whose capacity is highly sensitive to market moves to adopt a flexible leverage structure. Under the new framework, leverage may be adjusted daily within existing caps (leveraged products up to 2x; inverse products down to -2x). Product providers may lower target leverage when necessary to create headroom to manage products during periods of heavy trading. The leverage for the next trading day must be disclosed af

Hong Kong’s SFC issued a revised circular requiring leveraged and inverse products whose capacity is highly sensitive to market moves to adopt a flexible leverage structure. Under the new framework, leverage may be adjusted daily within existing caps (leveraged products up to 2x; inverse products down to -2x). Product providers may lower target leverage when necessary to create headroom to manage products during periods of heavy trading. The leverage for the next trading day must be disclosed after each market close. Daily potential adjustments will reinforce these products’ single-day nature and remind investors they are not suitable for holding beyond one trading day.