Major Wall Street Institutions Curb Leveraged Hedge Fund Bets on Samsung and SK Hynix

Deep News06-12 14:00

According to informed sources, several major Wall Street banks are imposing restrictions on leveraged bets made by hedge funds targeting leading Asian semiconductor manufacturers such as SK Hynix Inc and Samsung Electronics Co Ltd. This move comes as these stocks have experienced significant surges this year, raising concerns about a potential market correction.

The sources indicate that institutions including Citigroup Inc, JPMorgan Chase & Co, and The Goldman Sachs Group Inc have increased the financing costs for hedge funds seeking to take long positions in SK Hynix and Samsung Electronics through swaps.

They also noted that the banks have tightened controls regarding the scale and counterparties for new transactions. Similar measures have reportedly been applied to Taiwan Semiconductor Manufacturing Company Ltd (TSMC).

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