Individuals in a single-stock leveraged product 3 trillion won prompted new listing rules (market capitalization 5% threshold)
9 trillion won in net purchases of single-stock leveraged products by individuals in a day. During the same period, some leveraged products showed price movements that differed significantly from those of the underlying stocks, and reports said a delisting criterion was newly established if the market capitalization share was below 3%5.
9Trading in single-stock leveraged products was concentrated in a day. SK hynix common shares rose 16% on the same day, but some single-stock leveraged ETFs fell 27%. Such cases of sharp rises and falls were reported by the media.
Individual investors recorded a large volume of net purchases. Net purchases by individuals of single-stock leveraged products targeting Samsung Electronics and SK hynix exceeded 3 trillion won. A large amount of individual funds had flowed into specific products.
News of changes to listing rules was reported in the market. Reports said a delisting criterion was newly established for single-stock ETPs if the market capitalization share was below 5%. Reports concerning listing-maintenance requirements concentrated on 9.
Further cases of sharp successive changes were also reported. 8On the day, SK hynix common shares 8% fell, while a single-stock leveraged product 50surged by %. This was a case in which the movements of the underlying stock and the leveraged product diverged.
Some market participants pointed to the structural risks of single-stock leveraged products. Concerns were raised that repeated rises and falls could result in losses. It was noted that, by nature, daily changes accumulate differently from those of the underlying stock.
Single-stock leveraged products from major asset managers, including Mirae Asset and TIGER, were traded. Trading value and net purchases of these products increased significantly by asset manager. It was reported that coverage of changes to listing rules could affect whether the relevant products remain listed in the future.