FSS governor issues stern warning on excessive ETF advertising and orders management of premium/discount rates
The governor of the Financial Supervisory Service 7month 13day issued a stern warning that he would respond firmly to excessive ETF advertising and urged better management of premium and discount rates. During the same period, trading in inverse and leveraged ETFs surged, while ETFs linked to Hong Kong’s H Index and crude oil showed strength. Semiconductors saw a contrast in sector sentiment due to export records and power issues.
The governor of the Financial Supervisory Service 7month 13day warned that he would take ETF excessive advertising seriously and urged related institutions and asset managers to do their utmost to manage ETF premium and discount rates. The remarks came at a time when investor trading was concentrating in certain ETFs.
7month 12day, trading in inverse and leveraged products reportedly surged in tandem. On the same day, buying interest was also strong in ETFs linked to Hong Kong’s H Index and crude oil-linked investment products.
A trend related to the semiconductor industry also emerged. 800It was reported that nuclear-power-related stocks showed an upward trend, as electricity is essential for operating semiconductor fabs worth trillions of won.
Export indicators were also released. Semiconductor exports once again set a new record at 112billion dollars, while total exports increased by 53.9%.
In the market, there was also commentary that, as so-called “peak-out fears” spread over semiconductors, the securities industry sees them as a buying opportunity. The reports said company earnings, supply and demand, and policy risks are drawing attention at the same time.
The Financial Supervisory Service chief’s warning and market trends came out at the same time. The supervisory authority asked asset managers to manage advertising labeling and the discount rate, while ETF trading concentration and sector-by-sector differentiation were observed in the market.