A 26-year-old trader in Hong Kong misappropriated HK$50 million and bet twice as long on Hynix, losing a huge loss of HK$150 million.

A case of huge fund misappropriation and leveraged stock trading resulting in huge losses broke out in the Central Financial District of Hong Kong. Recently, a female director of a securities company at Universal Building, 19 Des Voeux Road Central, Central, Hong Kong, reported the case.It pointed out that a 26-year-old male employee of the company misappropriated about HK$50 million of the company for stock trading without authorization, resulting in a book loss of up to HK$150 million.

After the police arrived at the scene for investigation, they arrested a 26-year-old man surnamed Yuan on suspicion of "theft". The case was handed over to the Central District Police Criminal Investigation Team for follow-up.

According to the report, the man involved worked for Fortune Management Services Co., Ltd., and the relevant transactions lasted from January 9 to July 20 this year.

Without permission, the man used about HK$50 million of the company as a deposit, raised hundreds of millions of HK$ through relevant institutions, and bought the CSOP SK Hynix daily leveraged (2x) product listed on the Hong Kong Stock Exchange, code 07709.HK.

This product is not an ordinary SK hynix stock, but a leveraged product that tracks twice the daily performance of SK hynix's common stock.

The man involved in the case had been employed for about half a year, and the relevant operations lasted almost throughout his entire tenure. The incident was eventually discovered during the company's recent audit and accounting process, and the company subsequently called the police.

However, the police stated that approximately HK$50 million was the company's funds that were allegedly used without authorization, and approximately HK$150 million was the estimated loss based on the position price at the time. The two are not of the same caliber.

The police have not announced the specific number of positions, financing multiples, or how the man involved obtained the company's account and financing authority.

It is worth noting that after the case was exposed, Chief Securities issued a statement emphasizing that the man involved was not its employee and the company had nothing to do with the incident.

Chief Securities stated that it is a licensed corporation regulated by the Hong Kong Securities Regulatory Commission. Client funds are deposited in independent custody bank accounts. Hong Kong stock and U.S. stock assets are managed by Hong Kong Securities Clearing Company Limited and the American Depository Trust and Clearing Corporation respectively.