SK Hynix ADR public offering 149price fixed amid leverage ETF controversy

The offering price of SK Hynix's American depositary receipt (ADR) was set at 149 dollars. As this news emerged, moves to launch a leveraged exchange-traded fund (ETF) based on the ADR were also being discussed, drawing investor attention.

In parts of the U.S. securities market, moves to launch a leveraged ETF based on SK Hynix ADRs have been confirmed. Details such as the specific launch timing and the list of asset managers have not yet been disclosed.

In South Korea, a Samsung Electronics and SK Hynix 5-27leveraged ETF listed on 2day of the month drew investor attention. After the product was listed, sharp gains and losses related to Samsung Electronics and SK Hynix were reported on some trading days.

The Blue House identified leveraged single-stock ETFs as a major cause of sharp swings in the KOSPI and said it would discuss the matter at a high-level meeting. At the session, the need for a review by the financial authorities was raised.

The financial authorities said they would closely examine leveraged single-stock ETFs such as Samsung Electronics and SK hynix, and that they would take supplementary measures if necessary. No specific corrective measures or timetable were disclosed.

Some reports and remarks pointed out cases in which the daily price range of certain stocks expanded to around 10level after the listing of leveraged ETFs. The related facts, the confirmation of the offering price, and discussions by the government and authorities were all raised at the same time.

As of now, the confirmation of the offering price and the announcement of reviews by the government and authorities have both been verified. Further details are expected to be released through additional disclosures and follow-up announcements from the supervisory authorities.