Explanation of the discrepancy between the secondary market price performance and investor expectations for 7747.HK on March 5
Thank you to all investors for your attention to CSOP products. We have noticed that on March 5, 2026, $CSOP Samsung Electronics Daily (2x) Leveraged Product (07747.HK)$ the performance of its secondary market price deviated from some investors' expectations. The explanation for this situation is as follows:
1. Why does the secondary market price differ from the net asset value per unit?
The situation in the Middle East has continued to evolve recently, and volatility in the Korean stock market has intensified. It should be noted that there is a time difference between trading hours in Korea and Hong Kong—when the Korean Exchange closes but the Hong Kong Stock Exchange is still trading (e.g., during the Hong Kong trading session from 14:30 to 16:00), the product’s secondary market price will no longer directly reflect the latest movements of the underlying stocks. Instead, it will primarily be influenced by multiple factors such as supply and demand in the market at that time, investor sentiment, and expectations. Therefore, when trading during this period, investors should note that there may be significant deviations between the secondary market price and the net asset value per unit.
2. What was the specific situation on March 5?
On March 5, Samsung Electronics (underlying stock) closed up +11.27%, while the secondary market price of 7747.HK rose by +14.33% on the same day. This discrepancy mainly stems from:
After the close of the Korean Exchange on March 4, an accumulated premium of approximately 8% occurred during the Hong Kong Stock Exchange trading session;
After the market opened on March 5, the market maker* stabilized prices through the quoting mechanism, gradually bringing the premium back to a reasonable range.
It should be emphasized that the net asset value (NAV) of 7747.HK on that day was actually recorded at+22.61%, which closely tracks twice the daily performance of the underlying stock (+11.27% × 2 ≈ +22.61%).
Attached chart: Comparison of Samsung Electronics’ share price and 7747.HK’s NAV movements from March 3 to 5; Data source: Bloomberg
Three, CSOP's Commitment
As the issuer of the product, CSOP will continue to:
- Actively communicate and cooperate with market makers to maintain market liquidity as much as possible
- Closely monitor premium and discount levels and minimize price deviations within a reasonable range
- Timely disclose information to investors to enhance product transparency
4. Friendly Reminder
Premiums and discounts are inherent characteristics of the ETF market mechanism and are normal phenomena. We have compiled a document titled 'Why the Price of Leveraged/Inverse Products Differs from the Leverage Ratio Return of Individual StocksFor further understanding of the related knowledge, please refer to the article. If you have any questions, feel free to contact us at any time.
Thank you once again for the understanding and support from all investors!
Southern Dongying Asset Management Co., Ltd.
March 9, 2026
*Market Maker: Securities market makers and authorized securities dealers, collectively referred to as market makers, provide liquidity for the Exchange Traded Products market in Hong Kong.。
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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