The CSOP 2x Leveraged Samsung Electronics ETF (07747) experienced a significant intraday plummet of 11.10% on Tuesday, reflecting heightened selling pressure in South Korean markets.
The decline occurred against a backdrop of broad market weakness, with South Korea's KOSPI index extending its decline by 4% to break below the 7,200-point level. Concurrently, the sell-off in South Korea's bond market intensified, with yields on government bonds surging to their highest levels since late 2023.
Industry-specific concerns further contributed to the downturn. Kyung Kye-hyun, former president of Samsung Electronics' semiconductor division, warned that significant capacity expansion by Chinese companies is expected to sharply increase global memory chip supply in the second half of next year, potentially leading to price declines. He also cautioned that memory demand itself could face contraction risks after 2028 if the return on capital expenditure for major technology companies declines.
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