South Korea's semiconductor stocks have a very high leverage concentration, with SK Hynix's leveraged ETF assets exceeding four times its average daily trading volume.
BlockBeats News, July 5th, The Kobeissi Letter reported that the leverage level of South Korean chip stocks has spiraled out of control. The total assets under management of the single-stock leverage and inverse ETF tracking SK Hynix currently amount to around $19 billion, over four times the approximately $4.5 billion daily average trading volume of the stock this year.
Meanwhile, the assets under management of Samsung-related leverage ETFs amount to around $12.4 billion, 176% higher than its approximately $4.5 billion daily average trading volume. The concentration of leverage in South Korean chip stocks is extremely high.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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