On August 19, South Korea's semiconductor giant SK Hynix announced a significant positive development, officially revealing a 40 trillion won buyback plan, the largest in history, after hours. At the same time, it committed to returning over 50% of free cash flow to shareholders from 2025 to 2027. Stimulated by this news, the stock of SK Hynix surged approximately 6%, propelling the Southbound trading product for SK Hynix listed on the Hong Kong Stock Exchange (stock code 07709.HK) to leap more than 20% in a single day.
As the most noteworthy and best-performing ETP product in the stock market over the past year, 07709.HK was launched a week ago on Binance, the world's largest cryptocurrency exchange, along with other core consumer internet stocks such as Kuaishou and Meituan, as well as a 2x long product for Samsung Electronics. These products quickly filled the derivatives matrix of Binance's core Asian assets and ignited the excitement of crypto users trading global stock assets.
Since its launch on Binance, 07709.HK has seen its price increase by as much as 59%, becoming one of the best-performing perpetual contract products on the platform during the same period; as of 4 PM on the 19th, the 24-hour trading volume exceeded 24.6 million dollars, with trading depth and user attention continuously rising, making it a new star in Binance's TradFi sector.
How has a leveraged ETP born on the Hong Kong Stock Exchange quickly gained popularity in the crypto market? What new trends in development does Binance's extensive layout of Asian stock derivatives reflect? When the AI bull market meets the around-the-clock trading of crypto derivatives, a migration of assets and restructuring of pricing power that spans traditional finance and the crypto world is quietly unfolding.
1. From the Myth of Hong Kong Stocks to Newcomers in Crypto: The Ascension Journey of 07709
As the most symbolic leveraged product in this round of the AI market, the birth and explosion of 07709.HK represent a phenomenal event in the Asian financial market.
On October 16, 2025, Southern Eastern Asset Management officially launched the SK Hynix daily leveraged (2x) product on the Hong Kong Stock Exchange under the code 07709, with an issue price of only 7.8 HKD. This product does not directly hold SK Hynix's shares but instead replicates them through a total return swap (Swap) to achieve double the daily price fluctuation of SK Hynix, with positions rebalanced daily to reset the leverage ratio back to 2x.
At that time, the AI wave was driving explosive demand for HBM (High Bandwidth Memory), and as the absolute leader in the global HBM sector, SK Hynix's stock price was on an upward path. With clear leverage attributes and convenient trading channels on the Hong Kong Stock Exchange, this product quickly attracted a large influx of retail and speculative capital, initiating an epic growth phase.
In just 8 months, the asset management scale of 07709 skyrocketed from 23 million HKD at its initial listing to surpass 132 billion HKD at its peak on June 22, 2026, becoming the largest listed fund in the Hong Kong stock market and the world's largest single stock leveraged ETP. In terms of price, the product's net value soared from 7.8 HKD to a peak of 193.65 HKD, with an annual increase of over 1061%, earning a reputation as the "10x base" and creating a wealth effect across the entire Asian investment circle.
By late June 2026, with adjustments in the South Korean stock market and short-term profit-taking in the semiconductor sector, SK Hynix's stock price fell from its peak. Yet, despite the volatility, this product remained the most closely watched individual stock leveraged product globally. During the 17% single-day surge in the South Korean stock market on July 31, 07709 once spiked 306% intraday, with a single-day trading volume surpassing 9.2 billion HKD, confirming its strong capital attraction.
The introduction of the SK Hynix 2x long perpetual contract on Binance opened new incremental space for this blockbuster product from the traditional market. Unlike the spot ETPs on the Hong Kong Stock Exchange, contracts on Binance use USDT as margin, supporting up to 20x leverage, providing uninterrupted trading services 24/7, and anchoring underlying prices using an interest rate mechanism that settles every 8 hours.
For crypto users, there’s no need to open an overseas brokerage account or perform currency exchange operations; they can participate in leveraged trading of top global semiconductor assets simply with USDT, greatly lowering the participation threshold. Furthermore, the around-the-clock trading mechanism fills the trading gaps during the closure of the Korean and Hong Kong stock markets, allowing investors to timely respond to global market news.
Since its launch, this contract has seen a maximum price increase of 58%, with a daily peak increase of 21% on August 19, driving trading volume to reach 24.6 million dollars, and steadily improving liquidity and open interest, becoming the standout product among Binance's Asian stock perpetual contracts, allowing 07709, this blockbuster from the Hong Kong stock market, to officially breach into the crypto market.
2. Why SK Hynix? The Underlying Narrative of the AI Storage Bull Market
The continued popularity of 07709 essentially relies on the fundamental explosion of SK Hynix in the age of AI — this is not just speculative trading, but a direct reflection of global technology industry trends in the capital market.
Currently, the explosive growth of AI large models and AI servers has upgraded storage chips from peripheral components of consumer electronics to the core bottleneck of the computing power industry. From Nvidia's AI GPUs to AI factories worldwide, there’s a substantial reliance on high bandwidth memory (HBM) for rapid data transmission, with SK Hynix being the absolute dominator in this sector.
Public data shows that SK Hynix currently holds 64% of the global HBM market and is the only manufacturer capable of simultaneously and stably mass-producing HBM3E and HBM4, deeply embedded with top global AI chip companies such as Nvidia. In June 2025, Nvidia and SK Hynix announced a long-term technical partnership to jointly promote advances in memory technology for AI factories, covering core product lines such as the Vera Rubin supercomputer and the Jetson Thor robotics platform, further consolidating their binding relationship. Due to strong demand from companies like Nvidia and Google, SK Hynix's HBM capacity for 2026 has been fully sold out.
In terms of performance, SK Hynix's growth is similarly explosive. In the first quarter of 2026, its consolidated revenue reached 52.58 trillion won, a year-on-year increase of 198.1%; net profit reached 40.35 trillion won, nearly quadrupling from the previous year, with profitability continuously hitting historical records. On June 22, 2026, SK Hynix's market capitalization exceeded that of Samsung Electronics for the first time, ending Samsung's 27-year reign as the "king of market capitalization" in South Korea, topping the Korean capital market, and becoming the third trillion-dollar market cap technology company in Asia.
Today (August 19) after hours, SK Hynix announced a 40 trillion won stock buyback, setting the highest record in the history of Korean listed companies, and its stock price subsequently rose over 6% before trading.
Meanwhile, the global memory industry is in a new upward cycle. According to TrendForce data, in the second quarter of 2026, the contract price of general DRAM increased by 58% to 63% quarter-on-quarter, and NAND Flash contract prices increased by 70% to 75% quarter-on-quarter, signaling a growth phase of increasing volume and price for memory chips.
This "industry monopoly + explosive performance growth + long-term growth potential" combination has made SK Hynix a core asset pursued by global capital, also making its associated 2x leveraged products an efficient tool for investors to profit from the AI storage trend. Whether it’s the myth of the billion-scale Hong Kong Stock market or the heat of contracts in the crypto market, they fundamentally reflect the global capital's vote for the AI storage sector.
3. Crypto Exchanges Betting on Asian Stocks: A New Battlefield for TradFi Integration
Binance's recent intensive launch of perpetual contracts for Kuaishou, Meituan, SK Hynix 2x long, and Samsung 2x long is not an isolated product launch, but a key step in its global TradFi derivatives strategy.
For the past two years, RWA has been one of the most imaginative tracks in the crypto industry. Data shows that in January 2025, the global trading volume of RWA derivatives was only 230 million dollars; by May 2026, this number had soared to 34.717 billion dollars, an increase of over 1500 times in a year and a half. Currently, Binance's RWA product line covers multiple categories including commodities, US stocks, stock indices, and bonds, and now it is focusing on Asian stocks to further improve its global asset layout.
The reasons why Binance has chosen the Asian market as its current expansion focus stem from multiple converging factors.
First is the difference in regulatory environments. The US market has strict regulations on synthetic stocks, stock tokens, and other products, and in 2021 Binance had to suspend its US stock token business due to regulatory pressures. In contrast, the Asian market has a more open attitude, with regions like Hong Kong and Singapore actively embracing financial technology, and South Korea itself has a mature individual stock leveraged ETF market, creating a friendly soil for the development of crypto derivatives. Making Asia a breakthrough point for TradFi business has become a common choice among leading crypto exchanges.
Secondly, there is a strong match with user demand. Asian investors typically have a stronger risk appetite and habits for leveraged trading, with retail trading in the South Korean stock market making up a significant share and the penetration rate of leveraged products ranking among the highest globally. The Hong Kong stock market's leveraged and inverse products have also been developing for many years, providing sufficient user education. The perpetual contracts for stocks launched by crypto platforms precisely tackle many pain points of the traditional market: no need to open overseas brokerage accounts, no quota approval and currency exchange processes required, one-click trading with USDT, higher leverage multiples achievable, and 24/7 uninterrupted trading. These features perfectly align with the trading needs of Asian retail investors and attract a large number of global crypto users who previously could not participate in the South Korean and Hong Kong stock markets.
Most importantly, Asia possesses the core assets with the greatest growth potential. From South Korea's semiconductor giants (SK Hynix, Samsung) to China's AI, internet, and consumer giants (Tencent, Kuaishou, Meituan, Zhihui), these are core targets in the global technology and consumer market, endowed with ample volatility and capital attention, making them inherently suitable for derivatives trading. By choosing to launch these assets, Binance captures the major trend of global capital allocating to core Asian assets.
With the development of stock derivatives on crypto platforms, a “dual pricing” market structure is emerging. Traditional exchanges are responsible for spot pricing during daytime hours, while crypto platforms cater to trading demands and price discovery during off-market hours. When significant macro news and industry events occur, the crypto market often reacts first, guiding the opening trends of the traditional market on the following day.
It is evident that the crypto market is evolving from being a “supplement” to the traditional market to becoming an important force influencing asset pricing.
Conclusion
The rise of 07709 in the stock market and Binance exchange is never an isolated product phenomenon. It is a microcosm of the explosive growth of the AI storage industry, a reflection of Asian investors' demand for leveraged trading, and a landmark event in the deep integration of the crypto industry and traditional finance.
From a billion-scale blockbuster fund on the Hong Kong Stock Exchange to a star perpetual contract on the crypto platform, the cross-market migration of a single product mirrors the profound changes happening in the global financial market. When the 24/7 uninterrupted crypto liquidity meets the core assets in Asia with the greatest growth potential, a new trading ecosystem, pricing mechanism, and wealth opportunities are all accelerating to form.
For investors, this is an era filled with opportunities, but it also requires a respectful awareness of leverage risks. For the entire industry, the stories of products like 07709 are just the beginning of the fusion between crypto and TradFi, with even more exciting chapters yet to come.
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