South Korean Equity ETFs Rebound This Morning as Finance Ministry Says Fundamentals Remain Solid; Fears Over AI Firm Financing Risks Ease

Stock News10-16 10:50

South Korean equity ETFs rebounded this morning. As of press time, the CSOP SK hynix Daily Leveraged (2x) Product (07709) rose 6.32% to HK$19.86, while the CSOP Samsung Electronics Daily Leveraged (2x) Product (07747) traded at HK$6.84, up 48.4%.

On the news front, South Korean stocks staged a sharp rebound on the morning of October 16, with the KOSPI index climbing more than 3%, and Samsung Electronics and SK hynix both surging in intraday trading. A day earlier, the KOSPI index had plunged nearly 8% amid artificial intelligence-related concerns, prompting South Korea's financial regulator to convene an emergency meeting on the stock market and issue an official statement calling for proactive measures to safeguard market stability and protect investors.

On October 16, South Korea's Ministry of Finance said stock market fundamentals remain sound and that it will deal seriously with any actions that disrupt the market. In addition, market fears over financing risks at AI companies have eased somewhat. According to reports, Jensen Huang said at an event in Stockholm that CoreWeave's financial strength continues to improve and its cost of capital is declining, that he is optimistic about the company, and that he sees no need for Nvidia to provide a financial backstop. He also said customer demand for AI chips continues to outstrip the company's supply capacity.

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