South Korea Reportedly to Launch Stock Leverage ETFs in May; First Batch Involves Samsung and SK Hynix

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South Korea is reportedly set to launch a single-stock leveraged ETF as early as May, with the first batch anchored by Samsung Electronics and SK Hynix, offering 2x leverage. The list of stocks may be expanded in the future depending on the situation.

According to reports from foreign media and South Korean sources, Samsung Asset Management and Mirae Asset have begun preparing related products. The Financial Services Commission (FSC) in South Korea announced earlier this January that it would accelerate the approval process for single-stock products. Currently, discussions are underway with various parties regarding the launch details. To prevent excessive speculation risks, regulators plan to implement several restrictions, such as approving only one related product per institution.

Retail investors shifting to Hong Kong for trading

Data shows that South Korea previously explicitly banned the launch of single-stock leveraged ETFs due to the higher risks associated with such products. However, South Korean retail investors are transferring their investments to Hong Kong to buy similar products listed locally in South Korea.

Southbound East Asia Samsung Electronics Daily Inverse (-2x) (07347) closed at HKD 0.321 today, up 14.2%. Southbound East Asia Samsung Electronics Daily Leverage (2X) (07747) closed at HKD 67.88, down 14.2%. Southbound East Asia Hynix Daily Leverage (2X) (07709) closed at HKD 27.12, down 14.6%.

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