The South is twice as long as Hynix has rebounded by 47%. This week’s trading volume is close to 60 billion. The more Korean funds fall, the more they buy
The Korean stock market rebounded sharply today, with SK Hynix rising nearly 9%, which also led to a surge in related leveraged products. Hynix, which was twice long in the South, once surged nearly 25% during the session today. At the close, the gain narrowed to 10.09%, rebounding 47.33% from this week's lowest point. Recently, this product has been very active in trading, with the transaction volume this week reaching HK$59.84 billion. As of July 14, the scale of the product has dropped to HK$57.94 billion, halved from the high of HK$130 billion.
The Korean stock market rebounded sharply today, with SK Hynix rising nearly 9%, which also led to a surge in related leveraged products. Hynix, which was twice long in the South, once surged nearly 25% during the session today. At the close, the gain narrowed to 10.09%, rebounding 47.33% from this week's lowest point. Recently, this product has been very active in trading, with the transaction volume this week reaching HK$59.84 billion. As of July 14, the scale of the product has dropped to HK$57.94 billion, halved from the high of HK$130 billion. Compared with the current scale of the product, the transaction volume of nearly HK$60 billion is very astonishing. This week, Korean investors are also doubling down on Hynix in the South. The total net buying amount on Monday and Tuesday this week reached US$1.9268 million. Industry insiders advise that investors should avoid blindly following trends when investing in related leveraged products, and need to fully recognize multiple risks such as market fluctuations and changes in the international situation. South China's twice long Hynix rose more than 10% today, rebounding 47.33% from this week's low Oriental Fortune data shows that Nanfang’s twice-long Hynix stock surged nearly 25% during the session today. As of the closing of Hong Kong stocks today, the product's gains have narrowed to 10.09%, rebounding 47.33% from this week's lowest point. Another ETF under CSOP linked to Korean chip stocks also rose today: CSOP's twice-long Samsung Electronics surged 8.39% today, rebounding 25.39% from this week's lowest point. According to the news, South Korea’s four major departments, including the Ministry of Finance and the Central Bank, will hold high-level meetings to introduce regulatory plans in response to the violent fluctuations of leveraged ETFs, alleviating market panic. In addition, SK Hynix has delivered NVIDIA's 12-layer HBM4 in batches and is expected to start large-scale production expansion in September. In addition, Barclays gave the recently listed SK Hynix US ADR an "overweight" rating and a target price of US$330, citing the continued shortage of memory, pricing power and its strong position in the high-bandwidth memory (HBM) field. On Tuesday local time, the share price of SK Hynix's ADR listed in the United States soared 27%, which is about 50% higher than South Korea's SK Hynix stock. The huge premium drove the Korean stock Hynix upward. This week’s trading volume has approached HK$60 billion, and Korean investors are also increasing their positions This week, Korean investors are also doubling down on Hynix in the South. Data from the Korea Securities Depository and Clearing Institute shows that on Monday and Tuesday this week, Korean investors were twice long on Hynix in the South and showed a net buying operation. The total buying amount on the two days reached US$6.4288 million, the total selling amount was US$4.5020 million, and the total net buying amount reached US$1.9268 million. The trading activity of this product has also been very high recently, and the transaction amount in the first three days of this week has been close to that of the entire last week. Oriental Fortune data shows that on Monday, Tuesday and Wednesday this week, the transaction amounts of this product were HK$20.19 billion, HK$23.52 billion, and HK$16.13 billion respectively. The cumulative transaction amount this week has reached HK$59.84 billion. Last week (July 6 to July 10), Nanfang's twice-long Hynix stock fluctuated downwards. The daily transaction volume was less than HK$20 billion, and the total weekly transaction volume was only HK$70.83 billion. It is also worth noting that the scale of this product is less than HK$60 billion. Compared with the scale of the product, the transaction amount of nearly HK$60 billion in three days is astonishing. According to data from Oriental Fortune, the scale of this product as of July 14 was HK$57.94 billion, halved compared with the highest point of scale. Previously, the market value of Southern Double Long Hynix exceeded HK$130 billion on June 22, becoming Hong Kong's largest ETP (Exchange-Traded Products), breaking the pattern of Tracker Fund's 27 consecutive years of ranking first in the scale of Hong Kong stock ETPs. It is worth noting that even though the stock price has rebounded, Southern Hynix’s decline this month is still as high as 51.83%. In terms of operating mechanism, this product adopts a synthetic simulation strategy and adopts a daily reset 2x leverage operation mode. Before deducting fees, the product aims to achieve twice the daily return of the underlying underlying: the underlying rises by 1% in a single day, and the ETF theoretically rises by 2%, thereby amplifying positive returns. However, this mechanism has double-edged sword properties, and losses will also be amplified in falling markets.
Therefore, industry insiders also remind investors not to blindly follow the trend when investing in related leveraged products, but to fully understand the multiple risks. On the one hand, the risks of this type of product are relatively high, and the income elasticity is considerable when the market is good. However, once the underlying underlying price falls, the losses will also be magnified. On the other hand, if the geopolitical environment and industry supply and demand pattern change, Korean chip stocks, which are more affected by the international situation, may once again experience large stock price fluctuations. (
Therefore, industry insiders also remind investors not to blindly follow the trend when investing in related leveraged products, but to fully understand the multiple risks. On the one hand, the risks of this type of product are relatively high, and the income elasticity is considerable when the market is good. However, once the underlying underlying price falls, the losses will also be magnified. On the other hand, if the geopolitical environment and industry supply and demand pattern change, Korean chip stocks, which are more affected by the international situation, may once again experience large stock price fluctuations. (