South Korean ETFs Experience Broad Declines at Market Open; Leveraged Samsung Product Plunges Nearly 14% as KOSPI Drops Over 8% to Trigger Trading Halt

Stock News06-08

South Korean exchange-traded funds (ETFs) opened significantly lower in trading. As of the latest update, the leveraged product 南方两倍做多三星电子 (07747) has fallen by 13.96% to HKD 159.95. Similarly, 南方两倍做多海力士 (07709) dropped 10.51% to HKD 95.66, while TR韩国 (02848) declined 5.35% to HKD 1,787.5.

The market movement is attributed to heightened expectations for interest rate hikes by the US Federal Reserve, which led to a severe sell-off in US stocks, particularly in the technology sector, during the session on June 5th, described as a "Black Friday."

On June 8th, South Korean equities opened sharply lower, with the KOSPI index plunging over 8%, which triggered a market-wide circuit breaker and halted trading for 20 minutes. Individual stocks, including Samsung and SK Hynix, initially fell more than 10% before showing a noticeable rebound by the latest update.

In response to the market volatility, the Korea Exchange convened an emergency market assessment meeting on June 8th to evaluate the situation and discuss measures to stabilize market operations. The exchange stated it would strengthen its institution-wide emergency response mechanisms, closely monitor global market trends, developments in the Middle East, and foreign exchange movements. It also plans to increase surveillance of unfair trading practices and expand the scope of inspections for illegal short-selling activities.

Notably, on June 8th, Nvidia and SK Hynix officially announced a multi-year technical partnership. The collaboration will focus on joint research and development for next-generation AI memory chips and includes a long-term supply agreement. This partnership directly addresses persistent market concerns about potential supply bottlenecks for memory in the expanding AI infrastructure.

Under the agreement, SK Hynix will co-develop specialized memory for Nvidia's Vera Rubin AI supercomputer, Vera CPU, RTX Spark PC, and Jetson Thor robotics computing platform. This move allows SK Hynix to enter new markets Nvidia is developing, including AI infrastructure, personal AI, and physical AI.

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