On June 29, Southern 2x Leveraged Samsung Electronics (07747) fell 11.43% in regular trading, trading at 158.55 HKD/share, with turnover of HKD 120 million. The decline reflects continued regulatory pressure from Korea's Financial Supervisory Service (FSS) on single-stock leveraged ETFs tracking Samsung Electronics and SK Hynix.
On the news front, FSS Chairman Lee Chan-jin previously stated publicly that he \"deeply regrets\" approving such leveraged products, noting they primarily benefit securities firms at the expense of retail investors. The regulator is actively formulating targeted stabilization measures including restrictions on credit trading and margin trading controls. The total scale of leveraged ETFs tracking Korea's two semiconductor giants has swelled to approximately 14 trillion won (roughly USD 9.1 billion), with 92% of holders being retail investors. This regulatory policy uncertainty continues to suppress product valuations.
Notably, this decline extends a turbulent period for the product. On June 26, the ETF fell over 15% as Korea's KOSPI index triggered circuit breakers with a 5%-plus intraday drop, while on June 23, the KOSPI plunged nearly 10% amid multiple bearish catalysts including the regulatory crackdown and rumors of unrealized capital gains taxation.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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