An ETF tracking the South Korean market has seen a significant surge, with the CSOP KOSPI 200 ETF (03121) gaining over 7%. At the time of writing, it was up 6.79% to HKD 7.945, with a trading volume of HKD 109 million.
The move follows a substantial rally in the underlying KOSPI index, which jumped more than 6% on June 25, reclaiming the 9000-point level in the afternoon session. Trading in KOSPI 200 futures was briefly halted for five minutes after an initial 5% surge triggered a circuit breaker mechanism.
Key individual components contributed to the gains. SK Hynix soared over 15% to a record high, while Samsung Electronics advanced more than 6%. The positive sentiment for memory stocks was fueled by a better-than-expected earnings report from Micron Technology (MU), which is seen as confirming a strong upcycle in the memory sector. Additionally, SK Hynix has tentatively scheduled the listing of its American Depositary Receipts (ADRs) on the Nasdaq for July 10.
Institutional outlook has also turned more bullish. JPMorgan has raised its target for the KOSPI index and recommended buying on dips, maintaining its maximum recommended exposure to the South Korean equity market.
The CSOP KOSPI 200 ETF began trading on the Hong Kong Exchange on June 18. This product is the first ETF in the Hong Kong market to track the KOSPI 200 index and is the only passive investment tool for the KOSPI 200 listed outside South Korea in the Asia-Pacific region, filling a gap for broad-based Korean equity exposure in Hong Kong.
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