Morningstar's "Hong Kong Exchange-Traded Funds (ETFs) Second-Quarter Capital Flow Review" showed Hong Kong recorded net inflows of HK$28.6 billion in the second quarter, down 54% from HK$62.2 billion in the first quarter, according to Ming Pao.

The report said the two single-stock leveraged ETFs XL二南方海力士 (7709) and XL二南三星 (7747) accounted for 86% of total ETF net inflows in the quarter. It also said the asset share of the "other" ETF category, which includes leveraged and inverse products (L&I), rose to 21.4% of Hong Kong's ETF market from about 8% in the first quarter.