Such products are not transparent and saddle the buyer with most of the risk, says Philip York of trading firm Alt224, who argues for a ban.
Leveraged and inverse exchange-traded funds contain an inherent inefficiency that can be exploited for profit by options traders, say industry experts.
There has also been a robust rise in the number of asset management firms licensed in the city, according to the local regulator's annual report on fund management activity.
Beijing faces huge hurdles to developing a retirement benefits system, and it does not help that the private sector is giving "dangerous" advice, argues consultant Stuart Leckie.
The Korean firm's head of ETF strategy said the asset manager's expectations had not been high for its first leveraged and inverse products in Hong Kong, as it moves to delist them.
The new firm's chief executive, Walter de Oude, sets out his stall to AsianInvestor, with some arguing this could be a good time to challenge more traditional insurers.