Swiss-based retail FX and CFDs broker Dukascopy Bank announced it has decided to reduce leverage on CFD of the Hong Kong index HKG.IDX/HKD to the level of 1:10.
The reduced leverage will become effective on Monday 29 June 2020.
The reduction follows the increase in the geopolitical tensions around Hong-Kong. Earlier in May Beijing announced its plans for a new security law in response to massive pro-democracy protests that have gripped the city over the past year. After the announcement, Hong Kong-listed stocks plunged. China’s new security law caused outrage in the US, however, recently the markets have started to recover after President Trump said that the US-China trade deal is still intact.
