South East British responded to the market's misgivings: two times more than Hercules is expected to hold. Bar Bar

Recently, on 31 July, twice as much of the south-east British (07709.HK) became the focus of the market because of high price fluctuations. As at 30 July, SK Hercules had dropped by 49 per cent from its June high point, double the net value of the product as more than Hercules had receded by more than 80 per cent, and had shrunk from HK$ 130 billion to about HK$ 100 billion. Following the issuance of the new regulations last week by the Hong Kong Securities Commission, this Monday, the South East British announced that, as of 3 August, the leverage and reverse products of 12 popular overseas shares, such as SK Hercules, Samsung Electronics, Tesla and Inweida, would be fully replaced by a “flexible leverage structure”. This led investors to question because, if managers took the initiative to reduce leverage, assuming that the subsequent SK Hercules rebounded quickly, the rate of net ETF restoration would be significantly slower and the return cycle of high-value purchases would be longer. In the evening of 30 July, the South East British clarified the market's doubts that the product would switch to a “flexible leverage structure” and possibly reduce the leverage multiplier, stating that, in the current market situation, the product was expected to remain at double (2x) leverage, and that the fund manager would not do any active leverage multiplier operation based on his own judgement of the market. The South East British stressed that since the entry into force of the change, the target leverage multiple announcement would be issued before the opening of the market on each transaction day. In the case of this product, for example, the announcement will be issued after its closing on 31 July and investors are kindly requested to pay close attention. (21 FINANCE)