Leverage ETF review and SK Hynix ADR listing move overlap, unsettling the stock market
Financial authorities decided to review single-stock leverage ETFs tied to Samsung Electronics and SK Hynix at a F4 meeting. At the same time, news came from New York of moves to launch a leverage ETF based on SK Hynix ADRs, and 5in 27a 2x ETF listed in month, cases were reported in which the intraday volatility of some stocks reached 10%.
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As the financial authorities prepare to review single-stock leverage ETFs for Samsung Electronics and SK Hynix at the Macroeconomic and Financial Issues Meeting (F4), related discussions will resume. This is because the issue was pointed to as a major cause of sharp swings in the KOSPI.
Chief Economic Secretary Kim Yong-beom said he would carefully review the matter on 10and make supplements if necessary. The remarks reflect an intention to examine the market impact of leverage products.
Last 5month 27day, a 2x leverage ETF based on Samsung Electronics and SK Hynix was listed. After the listing, interest from individual investors increased sharply.
In some stocks, intraday swings reached 10%, and the article referred to a phrase describing ‘Samsung Electronics and SK hynix intraday volatility of 10%’.
In New York’s financial community, moves were reported to launch a leveraged ETF based on SK hynix ADRs. Whether it will be listed in the U.S. and the timetable have not yet been finalized.
Hanwha Aerospace was reported to have had its target price lowered by securities firms after it lost an armored vehicle order in Germany. The related news affected individual stocks.
The financial authorities have decided to discuss the impact of leveraged ETFs on domestic stock-market volatility and the need for institutional improvements at F4. Related announcements and disclosures are continuing.