The regulator will allow certain leveraged and inverse products to adopt flexible leverage structures, while requiring additional disclosures on daily leverage targets.

Hong Kong’s Securities and Futures Commission (SFC) has revised its regulatory framework for authorised leveraged and inverse (L&I) products, allowing product providers greater flexibility in managing leverage exposure while introducing additional disclosure requirements for investors. Product providers will be required to disclose any changes to leverage factors after market close each day The updated framework follows significant growth in Hong Kong’s L&I products marke