2x Leveraged ETF related to SK Hynix tumbled 30% in Hong Kong market while 2x Samsung ETF plunged 21%.
SK Hynix Inc. shares declined in Seoul on Monday after the memory chipmaker’s highly anticipated US trading debut, with traders citing profit taking and a shift to the American depositary receipts as the main drivers.
The stock fell more than 13% on Korea Exchange to its lowest level in more than a month, driving an 8% plunge in the benchmark Kospi that triggered a brief circuit-breaker suspension. The selling came after SK Hynix’s US listing climbed 13% Friday, in follow-on buying following the largest first-time US share sale by a foreign company.
“The ADR listing was highly successful, but much of that success had already been priced in,” said Chan H Lee, a managing partner at hedge fund Petra Capital Management in Seoul. “Today’s weakness appears to reflect a typical ‘sell the news’ reaction and profit-taking rather than any change in fundamentals.”
The company’s $26.5 billion US offering was closely watched as a test of demand for overseas offerings as well as for the longevity of the artificial intelligence rally. Even amid recent concerns over stretched AI valuations and high spending levels, the deal was more than seven times oversubscribed, according to people familiar with the matter.
