PANews
PANews|Aug 04, 2026 03:36
[South Korea's Leveraged ETF Trading Volume Plummets as Regulatory Measures Take Effect] According to Global Market Broadcast, after South Korean regulators implemented measures to curb the demand for leveraged ETFs that had recently driven significant market volatility, trading volumes for leveraged ETFs linked to South Korea's two major chip giants have sharply declined. The KODEX single-stock ETF tracking SK Hynix, one of South Korea's largest single-stock leveraged ETFs, saw its trading volume drop to 59 million shares on Monday, the lowest level since June 4. Another similar ETF linked to Samsung Electronics also recorded its lowest trading volume since its launch at the end of May. Peter Park, Assistant Manager of South Korean Equity Sales at NH Investment & Securities, stated: "The speculative leveraged bubble in major tech stocks has been suppressed from both upward and downward movements. While investors can freely sell existing holdings, new purchases face high cash thresholds, effectively ending speculative leveraged trading among retail investors.
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