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ETF anomalous movement | South Korean ETF suddenly plunged, South Korean KOSPI index fell more than 5% in a day, South Korean regulators warned of excessive leveraged investments.
On Tuesday, the South Korean KOSPI index fell more than 5%, South Korean ETFs collectively plummeted in early trading. As of the time of writing, Samsung Electronics (07747) fell 6.8% to 137.1 Hong Kong dollars; TR Korea (02848) dropped 4.39% to 1808 Hong Kong dollars; and South Korea doubled its position in Hynix (07709) fell 2.06% to 95 Hong Kong dollars.
On Tuesday, the South Korean KOSPI index fell more than 5% at one point, and South Korean ETFs plunged collectively in early trading. As of the time of writing, Southbound leveraged Samsung Electronics (07747) fell by 6.8% to HK$137.1; TR South Korea (02848) fell by 4.39% to HK$1808; Southbound leveraged Hynix (07709) fell by 2.06% to HK$95. On the news front, the vice chairman of the Financial Supervisory Service of South Korea, Hwang Sun-woo, recently expressed concern about signs of overheating in the stock market and expanding margin trading balance, stating that proactive measures will be taken to ensure market stability when necessary. He specifically mentioned that during the Middle East war in March this year, the scale of forced liquidation exceeded 100 billion Korean won in a single day, emphasizing the need to be cautious of excessive leveraged investments. In addition, on May 11th, the head of the Presidential Policy Office in South Korea, Kim Yong-fan, proposed the establishment of a so-called "Citizen Dividend," with funding coming from the excess profits generated by the artificial intelligence (AI) industry. He also emphasized that in the AI era, excess profits naturally concentrate towards a minority group, and without institutional intervention, the wealth gap in the country will further deepen. Shareholders of storage chip companies, core engineers, and various asset holders are likely to receive substantial returns, while the majority of the middle class may only feel indirect effects.
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