Hong Kong adjusts rules for leveraged and inverse ETFs as trading boom fuels volatility

HONG KONG, July 24 : Hong Kong's securities regulator moved on Friday to smooth volatility in the booming market for leveraged and inverse exchange-traded products by giving issuers more flexibility to adjust the leverage factor during turbulent trading while requiring clearer daily disclosure for investors. • Leveraged and inverse ETPs are funds aimed at delivering a multiple of, or the opposite of, an underlying asset's daily return using derivatives such as swaps or futures.• Single-stock leveraged ETFs are booming in Asia as investors use them to juice bets on chipmakers such as Samsung Electronics and SK Hynix, driving massive flows that are reshaping markets, lifting volatility and worrying regulators.• The Securities and Futures Commission will now require L&I products with "highly