HK Trader Misappropriates HK$50M for SK Hynix ETF, Faces HK$150M Loss

A 26-year-old Hong Kong trader stole HK$50M to buy leveraged SK Hynix ETFs, resulting in HK$150M paper losses as the asset dropped 72%.

Woofun AI reports that a 26-year-old employee at Chee Fu Management Services Limited allegedly misappropriated HK$50 million in company funds. The individual used these funds as margin to purchase the CSOP Direxion 2x Long SK Hynix ETF via leveraged financing. The combination of margin leverage and the ETF's 2x structure resulted in paper losses of approximately HK$150 million. The ETF price fell over 72% from its late-June high of HK$193.65 to HK$52.58 by July 20, following a semiconductor sector correction. Police have arrested the trader on suspicion of theft, while the position remains open.