CSOP Samsung Electronics 2x Leveraged (07747.HK) Down 7.85% as Samsung Reverses Early Gains

NewTimeSpace News: As of 11:16 on November 4, CSOP Samsung Electronics 2x Leveraged (07747.HK) fell 7.85% to a latest price of HK$44.140. The product has so far traded 7.1973 million units today, with turnover of HK$326.1 million and an average price of HK$45.311; its turnover rate is 7.233%. It has fallen 10.76% week to date. The net asset value per unit is HK$48.1375, and assets under management stand at HK$4.790 billion (about US$610 million). (Note: NAV and AUM are as of November 3; the week-to-date change is based on the October 30 close of HK$49.460.)

South Korea's KOSPI turned lower on November 4 after rising more than 3% and topping 5,800 points earlier, subsequently breaking through 5,800, 5,700 and 5,600. Samsung Electronics gave back an early gain of about 4%, with losses widening to 3% at around 10:26 Beijing time to trade near KRW 215,500, while SK Hynix extended declines to 4.5% after rising as much as 6%. Japan's Nikkei 225 fell more than 3%, down nearly 2,000 points intraday, with Kioxia slumping 11% and SoftBank Group and Advantest down more than 7%.

CSOP Samsung Electronics 2x Leveraged (07747.HK) is a daily leveraged product under CSOP seeking daily returns equal to twice the daily performance of Samsung Electronics ordinary shares, mainly through swaps and other derivatives. Leverage resets daily and returns are measured against a single day; when held for more than one day, compounding and the daily reset will cause cumulative returns to diverge from twice Samsung's performance over the same period. The product is managed by CSOP Asset Management Limited, with the US dollar as its base currency and AUM denominated in USD.

Samsung Securities believes slower memory price gains do not mean peak profit — higher shipments and an improved product mix can still lift earnings. HBM production absorbs part of existing capacity and new capacity takes time to ramp, lengthening the gap between slower price increases and falling profits; the defining feature of this cycle is how long the profit cycle lasts. The recent share price weakness has, in its view, over-reflected concerns about the earnings outlook.