The Hang Seng Index fell below the 20,000-point mark, and hundreds of bull certificates in the Hong Kong stock market were forcibly recalled.

On November 12th, the Hong Kong stock market experienced a significant drop, maintaining a shaky downward trend throughout the day. By the closing bell, the Hang Seng Index had fallen below 20,000 points, closing at 19,846.88 points, a decrease of 2.84%, with a low of 19,761.31 points during the period. The Hang Seng Tech Index also fell by 4.19%. Due to the sharp decline in the Hong Kong stock market, hundreds of bull and bear certificates were forcibly recalled and trading was terminated. It is understood that bull and bear certificates, along with derivative warrants, are both structured products and leveraged investment tools. Bull and bear certificates can track the performance of related assets without having to pay the full amount to purchase the actual assets. Bull and bear certificates are divided into bull certificates and bear certificates, and investors can choose to buy bull or bear certificates based on their view of the related assets. However, there are conditions attached to the issuance of bull and bear certificates: during the validity period of the bull and bear certificates, if the price of the related assets reaches the specified level in the listing document (referred to as the "recall price"), the issuer will recall the relevant bull and bear certificates in real time. If the price of the related assets touches the recall price before the maturity of the bull and bear certificates, the certificates will be terminated early and trading will be terminated in real time. Taking the example of the Hang Seng SocGen 77 Bull (56868) on November 12th at 14:43:50, as the Hang Seng Index fell below its recall price of 19,768 points, the bull certificate was forcibly recalled and trading was terminated, leaving investors with very little of their initial investment.