After South Korea's regulators took steps to curb speculative trading, leveraged ETF trading volume linked to the country's two largest chip giants shrunk sharply. Korea's largest single-stock leveraged ETF is linked to SK Hynix's stock price performance. Its trading volume fell to 59 million copies on Monday, the lowest level since June 4. The trading volume of similar ETFs linked to Samsung Electronics and relatively small in size also fell to the lowest level since listing at the end of May. This type of leveraged ETF product has previously contributed to sharp fluctuations in the Korean stock market. South Korea's regulators introduced cooling measures last month, including increasing the minimum cash balance requirement for investor accounts and temporarily banning the listing of new single-stock leveraged ETFs. These ETFs use derivatives to amplify returns, triggering a boom in retail trading, making the Korean stock market with a market capitalization of 3.7 trillion US dollars one of the most volatile markets in the world.

Zhitongcaijing · 2d ago
After South Korea's regulators took steps to curb speculative trading, leveraged ETF trading volume linked to the country's two largest chip giants shrunk sharply. Korea's largest single-stock leveraged ETF is linked to SK Hynix's stock price performance. Its trading volume fell to 59 million copies on Monday, the lowest level since June 4. The trading volume of similar ETFs linked to Samsung Electronics and relatively small in size also fell to the lowest level since listing at the end of May. This type of leveraged ETF product has previously contributed to sharp fluctuations in the Korean stock market. South Korea's regulators introduced cooling measures last month, including increasing the minimum cash balance requirement for investor accounts and temporarily banning the listing of new single-stock leveraged ETFs. These ETFs use derivatives to amplify returns, triggering a boom in retail trading, making the Korean stock market with a market capitalization of 3.7 trillion US dollars one of the most volatile markets in the world.